The Nigeria Employers Consultative Association has expressed serious concerns over the recent Memorandum of Understanding signed between Nigerian National Petroleum Company Limited and Chinese firms for the restart, completion and expansion of the Port Harcourt and Warri refineries.
NECA warned that Nigeria cannot afford another failed refinery rehabilitation project after billions of dollars were previously spent on turnaround maintenance programmes with little measurable success.
In a statement issued in Lagos, Director General of NECA, Adewale Smatt Oyerinde, described the new agreement as troubling considering the huge public funds already committed to refinery rehabilitation over the years.
According to him, although Nigeria urgently needs functional refineries to reduce dependence on imported petroleum products, Nigerians deserve full explanations regarding previous rehabilitation expenditures before new agreements are approved.
Oyerinde stated that endorsing another major refinery deal without accountability for past spending would be inappropriate. He noted that between 2010 and 2023, Nigeria reportedly spent over N11 trillion, estimated at about 25 billion dollars, on refinery rehabilitation and maintenance projects, yet the country’s state owned refineries remain largely non functional.
The employers’ body specifically referenced the 1.5 billion dollar rehabilitation project approved for the Port Harcourt Refinery in 2021. NECA argued that despite repeated assurances from authorities, the refinery has not delivered sustainable refining output.
Oyerinde also recalled that the Port Harcourt refinery has undergone several rehabilitation cycles since the 1990s, covering periods from 2000 to 2010, 2012 to 2015 and 2016 to 2021, all involving substantial public spending without significant operational improvement.
NECA questioned the transparency of the latest agreement with the Chinese firms and demanded full disclosure of the terms of the deal. The association called for details regarding technical equity partnerships, procurement procedures, technology transfer arrangements and safeguards against project delays and cost overruns.
The association further stressed that Nigerian businesses have suffered for decades due to energy insecurity, high production costs, foreign exce pressures and dependence on imported fuel.
NECA reiterated its longstanding position that the Federal Government should consider privatisation or concession of the refineries instead of continuing repeated rehabilitation programmes funded by public resources.
Leave a comment