The Federal Government must urgently suspend the recent Memorandum of Understanding (MoU) signed between the Nigerian National Petroleum Company Limited and Chinese firms over the rehabilitation of Nigeria’s refineries.
At a time when public trust in state-led oil sector reforms is fragile, proceeding with another opaque agreement risks deepening skepticism and repeating a cycle of costly failures.
For decades, Nigeria’s refineries have symbolised waste, inefficiency, and poor governance. Successive administrations have committed enormous public funds to turnaround maintenance with little or no measurable results.
Conservative industry estimates indicate that over $25 billion has been spent on refinery rehabilitation, maintenance, and related interventions since the late 1990s yet the facilities in Port Harcourt, Warri, and Kaduna have remained largely idle or grossly underperforming.
Between 2010 and 2020 alone, billions of naira were reportedly allocated for turnaround maintenance projects. In 2021, the Federal Government approved a $1.5 billion rehabilitation contract for the Port Harcourt refinery, raising fresh hopes that domestic refining capacity would be restored.
Similar commitments were made for the Warri and Kaduna refineries. However, despite these repeated financial injections, Nigerians have seen little improvement in output, with the country continuing to rely heavily on imported petroleum products.
This troubling history raises urgent questions: what happened to the billions already spent? Why have previous rehabilitation efforts consistently failed? And what guarantees exist that this new MoU will not follow the same path?
Against this backdrop, any new deal, particularly one involving foreign financing or technical partnerships, must be subjected to the highest level of scrutiny. Unfortunately, early indications suggest that Nigerians are once again being kept in the dark.
The terms of the MoU, including its financial structure, repayment obligations, and potential sovereign guarantees, have not been made public.
This lack of transparency is alarming.
It raises legitimate concerns about whether the agreement could expose the country to hidden liabilities or unfavourable conditions that mortgage future revenues. Nigeria cannot afford another arrangement where public resources are committed without clear safeguards, only for the project to underperform or collapse entirely.
President Bola Ahmed Tinubu, who has repeatedly assured Nigerians of his administration’s commitment to reform and accountability, must act decisively. Suspending the MoU is not an act of hostility toward investment; it is a necessary step to ensure due diligence, transparency, and alignment with national interest.
There is no doubt that Nigeria needs functional refineries. Reviving them could strengthen energy security, conserve foreign exchange, and stabilise domestic fuel supply.
However, the urgency of that need must not override the principles of good governance. A bad deal executed quickly is far worse than a well-structured agreement that takes time.
Moreover, the government must explain why previous rehabilitation efforts failed and what safeguards have been put in place to ensure this initiative does not suffer the same fate. Without clear answers, Nigerians are justified in questioning whether this MoU represents genuine progress or merely another chapter in a long history of mismanaged refinery projects.
Stakeholder engagement is also critical.
The National Assembly, industry experts, labour unions, and civil society organisations must be carried along.
Their input can help identify potential risks, strengthen oversight, and build public confidence in the process.
Nigeria stands at a critical juncture. The decisions taken today in the oil and gas sector will have far-reaching consequences for the country’s economic future. Entering into agreements without transparency not only undermines public trust but also weakens the foundation for sustainable development.
The message from Nigerians is simple and clear: no more secret deals, no more waste, and no more policies that prioritise expediency over accountability. Until the full details of this MoU are disclosed and subjected to proper scrutiny, it should not proceed.
Anything less would risk repeating the very mistakes the country can no longer afford.
Article written by Bankole Orimisan
