Energy expert Dan Kunle has criticised the recent agreement by NNPC Limited with two Chinese firms to revive the Warri and Port Harcourt refineries, describing the move as a “futile exercise” and a potential waste of national resources.
NNPC disclosed that it signed a memorandum of understanding on April 30 in Jiaxing, China, with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. According to the company’s Chief Corporate Communications Officer, Andy Odeh, the framework is designed to establish a technical equity partnership aimed at completing outstanding rehabilitation work and operating the refineries for improved, sustainable performance.
Speaking to ThePreview Media, Kunle dismissed the deal and urged that it be scrapped immediately. He questioned the technical capacity of the partner firms, arguing that they lack direct refinery ownership or operational experience.
“This exercise is futile. This is my personal and professional opinion,” he said, adding that Sanjiang Chemical operates in petrochemicals but has neither built nor managed a refinery.
Kunle also noted that both firms are privately owned and not original equipment manufacturers, raising concerns about their suitability for such a critical national project.
He called on NNPC to instead transfer the refineries to the National Council on Privatisation for a transparent, open sale. According to him, selling the assets “as is” would allow investors to determine whether to upgrade, expand, or repurpose them, while eliminating what he described as opaque arrangements.
The energy expert warned that the current approach could expose the country to future contractual disputes and financial liabilities, referencing past calls for privatisation that were not implemented.
“This is how some of us raised concerns years ago, and today we still don’t have a functional government refinery,” he said.
Kunle further argued that NNPC should redirect its focus to core areas such as oil and gas production and broader energy supply, rather than continuing to invest in ageing refinery infrastructure.
Nigeria operates four state-owned refineries—located in Port Harcourt, Warri, and Kaduna—with a combined installed capacity of 445,000 barrels per day. However, despite significant rehabilitation spending over the years, the facilities have struggled with consistent performance.
Recent efforts to revive operations have also faced setbacks. The Warri refinery, which resumed operations in December 2024, was shut down a month later over safety concerns, while the Port Harcourt refinery, which restarted in November 2024, was again shut in May 2025.
Earlier this year, NNPC Group Chief Executive Officer Bashir Ojulari stated that the refineries were not commercially viable in their current state, further fuelling the debate over whether continued rehabilitation or outright privatisation remains the best path forward.
