“Futile, waste of resources”: Expert faults NNPC’s refineries MoU with Chinese firms

Energy expert Dan Kunle has slammed NNPC Ltd’s MoU with two Chinese firms to revive the Warri and Port Harcourt refineries, calling it a “futile exercise” and “waste of national resources.”

NNPC on Monday said 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.

Chief Corporate Communications Officer Andy Odeh said the framework covers a potential Technical Equity Partnership to complete outstanding work and operate both refineries for “best-in-class, sustainable performance.”

Speaking to  ThePreview Media Monday night, Kunle said the deal should be aborted immediately.

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

He faulted NNPC for choosing firms he said lack refinery experience. “This MoU is with a company that does not own and 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 privately owned companies in China,” he added.

Kunle urged NNPC to hand the refineries to the National Council on Privatisation for an open, transparent sale “as is” instead of “backdoor deals.”

“The refinery should be sold ‘as is.’ Anybody who buys it can now decide to expand, to upgrade it, to do anything they like with it. That’s the most transparent way to go about this,” he said.

He warned the MoU creates room for future disputes. “When there is a contractual breach, they will now start claiming money again. This is how some of us screamed before to privatise the refineries in 2017, 2018, 2019, and nobody listened. Today, we still don’t have a functional government refinery.”

Kunle said NNPC should focus on gas and oil production, not rehabbing assets “qualified for privatisation and liquidation.”

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

Nigeria has four state refineries — Port Harcourt, 210,000 bpd; Warri, 125,000 bpd; Kaduna, 110,000 bpd — total 445,000 bpd capacity. Despite over N11 trillion spent on rehab from 2010 to 2023, per a House committee, they have underperformed for decades.

Warri reopened December 2024 but shut a month later over safety concerns. Port Harcourt resumed November 2024 after rehabilitation but NNPC announced another shutdown in May 2025.

In February, NNPC GCEO Bashir Ojulari said the state refineries were shut because they were not commercially viable in their current condition.