Employers’ body warns Nigeria cannot afford another failed refinery rehabilitation after billions spent with little results…
The Nigeria Employers’ Consultative Association has called on the Nigerian National Petroleum Company Limited to publicly disclose the full details of its newly signed refinery rehabilitation agreement with Chinese companies, warning against another round of costly but ineffective turnaround projects.
The demand follows an agreement signed on April 30 between the NNPC and two Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. aimed at exploring partnerships for the completion and operation of the Port Harcourt and Warri refineries.
Reacting to the development, NECA Director-General Adewale-Smatt Oyerinde said Nigeria could no longer continue pouring billions of dollars into refinery rehabilitation projects without achieving meaningful refining output or economic value.
In a statement titled “Enough of MoU Governance and Failed Revamps on Port Harcourt and Other Refineries,” Oyerinde criticised the repeated cycle of refinery turnaround maintenance that has yielded little success despite massive public spending over the years.
“It will be unpatriotic to endorse another opaque refinery deal while questions surrounding past spending and failed rehabilitation projects remain unresolved,” he said.
According to him, Nigerians deserve a clear explanation regarding how previous refinery rehabilitation funds were spent, what audits revealed, and what safeguards are now in place to prevent another failed exercise.
“Nigeria cannot continue spending billions of dollars on refinery turnaround maintenance without sustainable refining output or measurable economic value,” Oyerinde stated.
“NNPC must rebuild public trust through transparency, accountability and a clear business model capable of ending repeated refinery rehabilitation failures.”
The NECA boss urged the national oil company to release details of the proposed technical partnerships, technology transfer arrangements, local content plans, and operational structure under the agreement with the Chinese firms.
He argued that businesses across Nigeria have suffered for decades from rising energy costs, unstable fuel supply, import dependence, and job losses linked to the continued dysfunction of state-owned refineries.
Oyerinde also renewed NECA’s long-standing call for the privatisation or concession of the country’s refineries, insisting that governance reforms must come before any fresh rehabilitation plans.
According to him, the association would only support refinery revamp initiatives that are transparent, commercially sustainable, and capable of restoring public confidence in the country’s downstream oil sector.
The latest concerns come amid growing scrutiny over Nigeria’s repeated refinery rehabilitation efforts, which have consumed billions of dollars over the years with limited operational success.
Meanwhile, NECA has also intensified efforts to promote sustainable business practices among small businesses in Nigeria.
In a separate development, the association recently unveiled a new Environmental, Social and Governance implementation guide for micro, small and medium enterprises in collaboration with the International Labour Organization.
The initiative is designed to help Nigerian MSMEs adopt responsible business practices, improve sustainability standards, and strengthen competitiveness in local and international markets.
Speaking during the launch, Oyerinde said ESG principles have become increasingly important for businesses seeking long-term growth, investor confidence, and access to global opportunities.
“From investors and regulators to consumers and global value chains, there is a growing expectation for businesses, regardless of size, to demonstrate responsible and sustainable practices,” he said.
According to him, many Nigerian MSMEs still struggle to understand and implement ESG standards effectively, prompting NECA and its partners to develop a practical and accessible guide tailored to local business realities.
The guide, he explained, is expected to help businesses better identify ESG risks, improve governance structures, access financing opportunities, and position themselves competitively within global supply chains.
Oyerinde also called on government agencies, financial institutions, development partners, and private-sector stakeholders to support MSMEs through training, collaboration, and policies that encourage sustainable business growth.
Following the launch, NECA organised a capacity-building programme for selected participants aimed at deepening practical understanding of ESG implementation across different sectors of the economy.
