By Seun Ibiyemi
The Nigeria Employers’ Consultative Association (NECA) has raised concerns over the newly signed refinery agreement between the Nigerian National Petroleum Company Limited (NNPCL) and Chinese firms, calling for transparency, accountability, and governance reforms in the nation’s refinery operations.
NECA Director-General, Adewale-Smatt Oyerinde, made the position known in a statement issued on Sunday in Abuja while reacting to the Memorandum of Understanding (MoU) signed on May 4 for refinery rehabilitation and expansion projects.
The statement, titled “Enough of MoU Governance and Failed Revamps on Port Harcourt and Other Refineries,” questioned the rationale behind embarking on another refinery rehabilitation initiative after years of failed turnaround maintenance projects.
Oyerinde noted that Nigeria had reportedly spent about $25 billion on refinery rehabilitation over the years with little measurable results, particularly at the Port Harcourt refinery.
According to him, repeated rehabilitation exercises on the nation’s refineries have failed to produce sustainable refining output despite huge public investments.
“It will be unpatriotic to endorse another opaque refinery deal while questions surrounding past spending and failed rehabilitation projects remain unresolved,” he stated.
He added that Nigeria could no longer afford to continue spending billions of dollars on refinery turnaround maintenance without achieving tangible economic value or operational efficiency.
Oyerinde urged NNPCL to rebuild public trust through greater transparency, accountability, and the adoption of a clear business model capable of preventing another cycle of failed refinery revamps.
He further called on the national oil company to provide Nigerians with details of previous rehabilitation expenditures, audit outcomes, and safeguards put in place to prevent delays, cost overruns, and operational failures under the new agreement.
The NECA boss also demanded disclosure of the technical partnership arrangements, local content provisions, and technology transfer plans tied to the deal with the Chinese firms.
According to him, businesses across the country have endured years of energy insecurity due to rising production costs, fuel import dependence, and job losses associated with dysfunctional refineries.
Oyerinde reiterated NECA’s longstanding position supporting the privatisation or concession of the country’s refineries, insisting that governance reforms must precede any further rehabilitation projects.
He maintained that the association would only support refinery revamp initiatives implemented under transparent, commercially sustainable, and accountable frameworks capable of restoring public confidence in the sector.
NECA, NNPCL, Nigerian National Petroleum Company Limited, Adewale-Smatt Oyerinde, Refinery Rehabilitation, Port Harcourt Refinery, Oil and Gas Sector, Refinery Deal, Chinese Firms, MoU Agreement, Energy Sector Reform, Transparency and Accountability, Petroleum Industry, Fuel Production, Energy Security, Privatization Debate, Governance Reform, Oil Industry Investment, Nigeria Refining Capacity
