- A coalition of oil sector reform advocates has demanded an EFCC probe into alleged $3.5 billion refinery rehabilitation funds before new contracts are signed
- The coalition raised concerns raised over NNPCL’s new partnership with Chinese firms, amidst past project failures
- It called for National Assembly investigation and accountability in Nigeria’s oil sector spending
Abuja, FCT – A coalition of oil sector reform advocates has asked President Bola Tinubu to direct the Economic and Financial Crimes Commission (EFCC) to investigate alleged financial misconduct linked to past refinery rehabilitation contracts before the Nigerian National Petroleum Company Limited (NNPCL) proceeds with new agreements involving Chinese firms.
The Coalition for Oil Sector Reforms and Accountability made the demand during a press conference in Abuja on Wednesday, May 7, saying more than $3.5 billion reportedly spent on refinery rehabilitation over the years must be accounted for.
Photo credit: @officialABAT
Source: Twitter
The call follows the signing of a Memorandum of Understanding (MoU) between NNPCL and Chinese firms Sanjiang Chemical Company Limited and Xingcheng Industrial Park Operation and Management Company Limited for the rehabilitation and operation of the Port Harcourt and Warri refineries.
Speaking at the briefing, the coalition’s national president, Dr Tekeme Umukoro, said the latest agreement raised concerns over transparency and accountability in Nigeria’s refinery sector.
“We have gathered here today because Nigeria can no longer continue to tolerate a dangerous cycle of waste, opacity, and endless promises in the management of the nation’s refineries,” Umukoro said.
Questions over previous refinery rehabilitation projects
The coalition said successive governments had committed billions of dollars to refinery rehabilitation projects without achieving functional state-owned refineries operating at full commercial capacity.
According to the group, the Port Harcourt refinery rehabilitation alone reportedly consumed more than $1.5 billion, while additional funds were spent on the Warri and Kaduna refineries.
“Yet, despite these huge expenditures, ordinary Nigerians continue to suffer the consequences of fuel import dependency, unstable energy costs, and repeated supply disruptions,” Umukoro said.
“This represents not just policy failure, but a monumental tragedy of public accountability.”
The coalition questioned the absence of public audit reports and measurable outcomes tied to previous refinery rehabilitation contracts.
“Who handled the contracts? What milestones were achieved? What work was actually completed? Why did the previous rehabilitation programmes fail?” the group asked.
Concerns over new Chinese partnership
The group also expressed concern over comments by NNPCL Group Chief Executive Officer, Bashir Bayo Ojulari, indicating that the company was moving from contractor-led rehabilitation to a technical equity partnership structure.
“If the old rehabilitation framework failed despite billions of dollars in expenditure, then Nigerians deserve a comprehensive explanation before another MoU jamboree,” Umukoro said.
The coalition warned that the arrangement could allow foreign entities to take strategic positions in Nigeria’s refining infrastructure without sufficient public disclosure.
“What percentage of equity is being contemplated? What are the financial obligations of the Nigerian government? What are the long-term implications for national energy sovereignty?” the coalition asked.
Calls for National Assembly probe
The coalition called for the immediate publication of a comprehensive audit report covering all refinery rehabilitation expenditures from 2015 to date.
It also urged the National Assembly to open a public investigative hearing into refinery spending over the past decade.
In addition, the group asked Tinubu to direct anti-corruption agencies to investigate any evidence of financial misconduct linked to previous refinery rehabilitation contracts.
“We must never allow billions of dollars belonging to the Nigerian people to disappear into endless cycles of rehabilitation without measurable results,” Umukoro said.
“Nigeria deserves functional refineries. Nigeria deserves transparent institutions. Nigeria deserves accountability. And above all, Nigerians deserve the truth.”
Photo credit: @abdullahayofel
Source: Twitter
Group criticises NNPC deal with Chinese firms
In a related development, the Centre for Energy Sector Transparency (CEST) has criticised the new agreement between the NNPC Limited and Chinese firms to rehabilitate the country’s refineries, describing it as a wasteful repetition of failed strategies.
CEST said in a statement on Wednesday, May 6, that the memorandum of understanding (MoU) for a proposed technical equity partnership raises concerns about accountability and the management of public funds.
The NNPC Ltd recently announced the deal with two Chinese companies aimed at completing rehabilitation work and restarting operations at the Port Harcourt and Warri refineries, which have remained largely inactive despite multiple rounds of government-funded repairs.
Source: Legit.ng