Mkpoikana Udoma
Port Harcourt — For decades, Nigeria’s state-owned refineries have stood as symbols of both national ambition and national failure; massive industrial assets that have consumed billions of dollars in rehabilitation funds, yet remain largely dormant while the country imports most of its fuel needs.
Now, another attempt is underway. The recent signing of a Memorandum of Understanding, MoU, between the Nigerian National Petroleum Company Limited, NNPCL, and two Chinese firms, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, to revamp the Port Harcourt and Warri refineries, has again stirred cautious optimism across the oil and gas sector.
But unlike previous announcements, this latest move is arriving amid widespread public distrust, rising fuel costs, and growing questions over how successive governments spent billions of dollars on refinery rehabilitation projects that delivered little or no results.
At the heart of the debate is whether the new “technical equity partnership” model can finally succeed where previous turnaround maintenance programmes failed.
A history of failed refinery promises
Nigeria owns four refineries, two in Port Harcourt, one in Warri, and one in Kaduna, with a combined installed refining capacity of 445,000 barrels per day.
Yet, despite years of rehabilitation contracts and repeated government assurances, the facilities have remained completely idle for long periods.
Industry estimates indicate that more than $16 billion may have been spent on refinery rehabilitation efforts over the past decade alone, including the controversial $1.5 billion approved for the Port Harcourt refinery rehabilitation under the Muhammadu Buhari administration.
In late 2024, Nigerians were briefly told that the Port Harcourt refinery had resumed operations, sparking celebrations. But SweetCrude Reports say the optimism quickly faded as fuel supply realities failed to match official claims.
For many stakeholders, the latest Chinese-backed deal represents yet another test of government credibility.
‘Nigerians want action, not announcements’
Comrade Azubuike Azubuike, former zonal chairman of PENGASSAN in Port Harcourt, said Nigerians have become deeply skeptical because previous refinery revival announcements ended without measurable impact.
“For me, it is a good development. Unfortunately, Nigerians are no longer interested in stories. Nigerians want to see action rather than words,” he said.
According to him, repeated government pronouncements without visible results have weakened public confidence in the refinery rehabilitation process.
“There have been a lot of discussions, engagements, and pronouncements about similar agreements before now. We were told in 2024 that the refineries were working. Unfortunately, we are still where we are today.”
Azubuike who spoke exclusively to SweetCrude Reports in Port Harcourt, argued that the core problem goes beyond technical failures and points directly to governance and corruption.
“You can see that huge amounts have been put into the refineries, yet we cannot see products coming out. It goes to show the monumental fraud and corruption embedded in the whole refinery project.”
He questioned how billions of dollars could be spent without accountability.
“It is insane to put such money into a project without any result and then move on like nothing happened. People need to answer questions. People need to bear the consequences of billions of dollars spent on rehabilitation of the refineries without any result.”
Labour backs Chinese partnership, claim advocacy victory
Unlike the skepticism from some quarters, organised labour says the new refinery model reflects proposals long championed by unions in the oil sector.
The Trade Union Congress, TUC, Rivers State Council, described the MoU as a validation of years of advocacy by labour unions and PENGASSAN for the adoption of the NLNG model in refinery management.
“The current approach reflects the position labour has consistently advocated for years,” the TUC said in a statement signed by its chairman, Comrade Samuel Ogan.
Under the arrangement, the Chinese firms are expected to acquire equity stakes while also providing technical and operational expertise for the refineries.
Labour leaders believe the model could introduce operational discipline and reduce the inefficiencies associated with direct government control.
“If these MOUs progress into full-term agreements in the coming weeks, the TUC, in collaboration with PENGASSAN, will rightly take credit for championing a solution that serves Nigeria’s national interest,” Ogan stated.
The union expressed optimism that functional refineries would create jobs and stimulate wider economic growth.
PTROAN sees 2new direction’ for Nigeria’s downstream sector
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, also welcomed the agreement, describing it as a major strategic shift.
PETROAN spokesman, Dr. Joseph Obele, said the association viewed the partnership as evidence of a transition from failed rehabilitation approaches toward globally aligned operational frameworks.
Speaking on behalf of the association, PETROAN National President, Dr. Billy Gillis-Harry, described the deal as “a timely and strategic intervention that signals a new direction for Nigeria’s refining sector.”
He said the technical equity model could finally address long-standing accountability and efficiency problems.
“The introduction of a technical equity partnership model will bring much-needed operational discipline, efficiency, and accountability that had been lacking in previous refinery rehabilitation efforts.”
According to PETROAN, integrating refinery operations with petrochemical and gas-based industrial hubs could significantly improve value creation and industrial growth.
The association said successful refinery operations would create thousands of jobs, reduce fuel imports, conserve foreign exchange, and improve fuel availability nationwide.
“This bold initiative demonstrates the readiness of President Bola Ahmed Tinubu to bring renewed hope to Nigerians,” PETROAN stated.
Environmental groups demand transparency, community inclusion
However, civil society organisations say reviving the refineries alone will not be enough unless transparency and environmental accountability are prioritised.
Dr. Fyneface Dumnamene, Executive Director of the Youths and Environmental Advocacy Centre, YEAC-Nigeria, warned that secrecy surrounding the MoU could undermine public trust.
“The full terms of the MoU must be made public. Nigerians deserve to know the cost structure, financing model, ownership arrangement, and projected timeline for refinery operations because secrecy breeds suspicion,” he said.
Fyneface told SweetCrude Reports that host communities in Rivers and Delta states must not be sidelined in the process.
“Host communities in Eleme, Okrika, Warri South, and surrounding areas must be meaningfully engaged from planning to implementation.”
He further stressed that refinery rehabilitation must adopt environmentally safe technologies.
“The era of gas flaring and toxic discharges into waterways and atmosphere must end.”
YEAC also called on regulators, including the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and the National Environmental Standards and Regulations Enforcement Agency, NESREA, to ensure strict compliance with environmental standards.
Can the NLNG model work for refineries?
One recurring proposal from labour and industry stakeholders is the adoption of the NLNG governance structure.
The NLNG model operates with private-sector efficiency, limited political interference, and strong international technical partnerships; factors many analysts say are missing in Nigeria’s refinery management history.
Azubuike believes this could be the real solution if implemented sincerely.
“What is stopping the government from using the NLNG model to revamp the refineries?” he asked.
“We have the manpower. All we need is to train and retrain our engineers, revamp the refineries properly, and allow professionalism to drive operations.”
He warned against any covert attempt to eventually sell the refineries cheaply to politically connected individuals.
“I wouldn’t want a situation where they will tell us the refineries cannot work and then clandestinely sell them to their cronies.”
Nigerians waiting for products, not promises
For ordinary Nigerians battling rising fuel prices and economic hardship, the debate is no longer about agreements or MoUs. It is about results.
Years after billions were spent on refinery rehabilitation, Nigeria still imports much of its refined petroleum products, while citizens continue paying heavily for petrol and diesel.
The latest agreement with Chinese firms may represent a fresh opportunity, but analysts say public confidence will depend entirely on whether fuel begins flowing consistently from the rehabilitated plants.
Until then, many Nigerians remain cautious, hopeful, but unconvinced.
This article was originally posted at sweetcrudereports.com
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