Barely 72 hours after the Federal Government signed a Memorandum of Understanding (MoU) with Chinese firms for the revival of the Port Harcourt and Warri refineries, the Nigeria Employers Consultative Association (NECA) has raised fresh concerns over what it described as a recurring cycle of wasteful spending on refinery rehabilitation projects.
The Director-General and Chief Executive Officer of NECA, Adewale-Smatt Oyerinde, warned against further expenditure on the nation’s refineries without clear accountability and tangible results, insisting that the government should consider privatisation or concession instead of continuing with endless turnaround maintenance (TAM).
In a statement made available to LEADERSHIP on Sunday, Oyerinde questioned the rationale behind yet another MoU for the same refineries, citing decades of failed rehabilitation efforts despite huge financial commitments.
According to him, “$25 billion had been spent with zero value. Between 2010 and 2023, Nigeria expended over N11 trillion-approximately $25 billion-on refinery rehabilitation projects, maintenance, and turnaround programmes, yet the state-owned refineries remain significantly unreliable and non-functional.”
He further recalled the $1.5 billion spent on the Port Harcourt refinery in March 2021, noting that despite claims of near completion and projected 90 per cent capacity recovery, the facility has failed to deliver sustainable output.
“The gamble of over $1.5 billion on the Port Harcourt refinery in March 2021 is still fresh in the minds of Nigerians. Despite purported claims of 90% readiness by 2026, the facility has not produced sufficient barrels of refined products on a sustainable basis,” he said.
Oyerinde also highlighted the long history of repeated rehabilitation cycles on the refineries since the 1990s, spanning 2000-2010, 2012-2015, and 2016-2021, all of which, according to him, ended with heavy spending and deteriorating facilities.
Expressing concern over the latest agreement between the Nigerian National Petroleum Company Limited (NNPC) and Chinese firms, NECA said the new arrangement raises more questions than answers.
“NECA views with grave concern the Memorandum of Understanding signed on May 4, 2026, between NNPC and Chinese firms for the restart, completion, and expansion of the Port Harcourt and Warri refineries,” he stated.
While acknowledging the importance of functional refineries to the economy, Oyerinde stressed that Nigerians deserve transparency and accountability regarding past investments before any new commitments are made.
