Official Waste Of Government Resources, National Wealth, Group Slams NNPCL GMD Over MOU With Chinese Firm To Revive Dead Refineries ...Demands Accountability Into Past Investment Of $1 Billion Into The Refineries

A coalition of oil sector reform advocates has criticised the latest agreement by the Nigerian National Petroleum Company (NNPC) Limited with Chinese firms to revive Nigeria’s refineries, describing the move as a wasteful recycling of failed strategies and a troubling signal of weak accountability in the management of public resources.

The group, the Centre for Energy Sector Transparency (CEST), made its position known in a statement issued on Wednesday and signed by its executive director, Dr Oghenetega Edafe, following the announcement of a new memorandum of understanding between NNPC Ltd and two Chinese companies for a proposed technical equity partnership.

The agreement is aimed at completing rehabilitation work and restarting operations at the Port Harcourt and Warri refineries, assets that have remained largely dormant despite multiple rounds of government-funded turnaround maintenance.

Edafe said the development raises serious questions about fiscal discipline, policy coherence, and the absence of accountability for previous investments running into billions of dollars.

“What Nigerians are witnessing is a troubling pattern of policy repetition without reflection. The same refineries that have gulped enormous public funds over the years are once again at the centre of a fresh round of agreements, yet there has been no transparent accounting of what has already been spent or why those investments failed to deliver results,” he said.

The group specifically referenced earlier government approvals of over $1 billion for refinery rehabilitation projects, warning that proceeding with new partnerships without a public audit of past expenditures undermines trust in the system.

“It is unacceptable that after committing over one billion dollars to refinery rehabilitation, the nation is being asked to embrace yet another agreement without a clear and verifiable audit of previous interventions. This is not just about policy failure; it is about the potential erosion of public trust in how national wealth is managed,” Edafe said.

He argued that while the introduction of a technical equity model may appear innovative, it does not absolve the government and NNPC Ltd of responsibility for past inefficiencies and possible mismanagement.

“The idea of bringing in technical partners with equity stakes is not inherently flawed. However, it becomes deeply problematic when it is introduced as a substitute for accountability. Before we speak of new partnerships, Nigerians deserve a full disclosure of how past funds were utilised, who was responsible for project delivery, and why the expected outcomes were not achieved,” he said.

The group also warned that without institutional reforms, the proposed collaboration risks becoming another cycle of investment without sustainable results.

“What is being presented as a strategic shift may, in reality, become another expensive experiment if the underlying governance issues are not addressed. Technical expertise alone cannot fix a system that lacks transparency, oversight, and consequences for failure,” Edafe said.

The Centre called on the National Assembly and relevant anti-corruption agencies to initiate a comprehensive probe of refinery rehabilitation projects over the past decade, including contract awards, disbursements, and project execution timelines.

“This moment demands more than optimism; it demands scrutiny. We call on oversight institutions like the National Assembly, Economic and Financial Crimes Commission (EFCC) and others to undertake a forensic examination of all funds committed to refinery rehabilitation, including the recent billion-dollar interventions. Nigerians must know what has been done with their resources and why the country is still dependent on fuel imports despite repeated promises of self-sufficiency,” he said.

The Centre added that restoring confidence in Nigeria’s oil sector would require not just new agreements, but a demonstrable commitment to transparency, accountability, and institutional integrity.