“Useless, waste of resources”: experts criticize the NNPC…

Energy expert Dan Kunle has criticized NNPC Ltd’s memorandum of understanding with two Chinese companies to revive refineries in Warri and Port Harcourt, calling it a “pointless exercise” and “waste of national resources”.

NNPC said on Monday that it signed the MoU on April 30 in Jiaxing, China, with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.

Andy Odeh, Chief Corporate Communications Officer, said the framework covers a potential technical equity partnership to complete exceptional work and operate both refineries for “sustainable, world-class performance.”

Speaking to ThePreview Media on Monday evening, Kunle said the deal should be terminated immediately.

“This exercise is useless. This is my personal opinion and a very professional opinion,” Kunle said.

He blamed the NNPC for choosing companies that he said had no refinery experience. “This MOU is for a company that does not own or operate a refinery. Sanjiang Chemical owns a petrochemical company in China. They have never built a refinery, nor do they own a refinery.”

“They are not an original equipment manufacturer. The two companies are not state-owned. They are private companies in China,” he added.

Kunle urged the NNPC to hand over the refineries to the National Council on Privatization for open and transparent sale “as is” instead of “backdoor deals”.

“The refinery should be sold ‘as is’. Whoever buys it now can decide to expand it, upgrade it, do what they want with it. This is the most transparent way to deal with the issue,” he said.

He warned that the memorandum of understanding creates room for future disputes. “When there is a breach of contract, they will start demanding money again. This is how some of us shouted to privatize the refineries in 2017, 2018, 2019, and no one listened. Today we still don’t have a functioning government refinery.”

Kunle said the NNPC should focus on oil and gas production, not restructuring assets “qualified for privatization and liquidation.”

“The distraction that the NNPC manager is embarking on is uncalled for. They should look for investments in gas production, oil production and energy supply for the country,” he said.

Nigeria has four state-owned refineries: Port Harcourt, 210,000 barrels per day; Warri, 125,000 barrels per day; Kaduna, 110,000 barrels per day: total capacity 445,000 barrels per day. Despite more than $11 trillion spent on rehabilitation from 2010 to 2023, according to a House committee, they have underperformed for decades.

Warri reopened in December 2024 but closed a month later for safety reasons. Port Harcourt resumed in November 2024 after rehabilitation, but NNPC announced another closure in May 2025.

In February, Bashir Ojulari of the NNPC GCEO said the state’s refineries had been closed because they were not commercially viable in their current condition.

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