Coalition demands accountability over $3.5bn refinery rehabilitation funds
The Coalition for Oil Sector Reforms and Accountability has called on the Nigerian National Petroleum Company Limited (NNPCL) to account for more than $3.5 billion reportedly spent on refinery rehabilitation
The Coalition for Oil Sector Reforms and Accountability has called on the Nigerian National Petroleum Company Limited (NNPCL) to account for more than $3.5 billion reportedly spent on refinery rehabilitation projects before entering into fresh agreements with Chinese firms.
The coalition made the demand on Wednesday during a world press conference in Abuja, where its National President, Dr. Tekeme Umukoro, criticised what he described as a recurring pattern of waste, opacity and unfulfilled promises in Nigeria’s refinery sector.
The group’s reaction followed the recent signing of a Memorandum of Understanding (MoU) between NNPCL and two 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.
Umukoro said the latest agreement had raised serious accountability concerns, particularly against the backdrop of previous billions of dollars committed to refinery rehabilitation projects without visible results.
“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,” he said.
“For decades, successive administrations have committed billions of dollars to refinery rehabilitation projects, yet the country continues to depend heavily on imported refined petroleum products. Nigerians have repeatedly been told that the Port Harcourt, Warri, and Kaduna refineries were being revived, only for those promises to collapse under the weight of poor execution, secrecy, and lack of accountability.”
The coalition said it was disturbed that despite huge investments in the nation’s refineries, Nigeria still lacks functional state-owned refineries operating at optimal commercial capacity.
According to them, the Port Harcourt refinery rehabilitation alone reportedly consumed over $1.5 billion under previous arrangements, while additional billions were committed to 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. This represents not just policy failure, but a monumental tragedy of public accountability,” Umukoro said.
“We find it unacceptable that public institutions continue to announce new agreements without first accounting for previous investments. Nigerians deserve to know what happened to the billions already spent on refinery rehabilitation.”
The coalition questioned the absence of public audit reports and measurable operational 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? Where are the audit reports? Where are the measurable operational outcomes?” the group asked.
Experts also expressed concern over comments by Bashir Bayo Ojulari, group chief executive officer of NNPCL, indicating that the company was moving away from traditional contractor-led rehabilitation towards 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.
“You cannot simply abandon one failed model and quietly move into another without first accounting for public resources already expended. No serious nation operates like that.”
The coalition further warned that the fresh Chinese partnership raised broader governance and sovereignty concerns.
“This suggests that foreign entities may eventually take strategic operational positions within Nigeria’s refining infrastructure,” the speech read.
“But Nigerians have not been told the exact nature of the proposed technical equity arrangement. 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 group called for the immediate publication of a comprehensive audit report detailing all refinery rehabilitation expenditures from 2015 to date.
It also urged the National Assembly to commence a public investigative hearing into refinery rehabilitation spending over the past decade.
In addition, the coalition asked President Bola Tinubu to direct anti-corruption agencies to investigate any evidence of financial misconduct connected to past refinery rehabilitation contracts.
“We must never allow billions of dollars belonging to the Nigerian people 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.”
