Energy expert Dan Kunle has sharply criticised the recent deal between NNPC Limited and two Chinese companies to revive Nigeria’s state-owned refineries, calling the move a “futile exercise” and a misuse of public resources.
On April 30 in Jiaxing, China, NNPC announced it had signed a Memorandum of Understanding with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. This deal aims to establish a technical equity partnership to complete rehabilitation work and manage operations at the Warri and Port Harcourt refineries.
Kunle criticised the arrangement, saying the chosen companies don’t have the technical know-how to run refinery operations. He pointed out that Sanjiang Chemical is mainly a petrochemical company with no proven history in building or managing refineries.
He further noted that both firms are privately owned and not original equipment manufacturers, raising concerns about their capacity to deliver on the project.
Kunle asked the national oil company to scrap the deal and opt for a transparent privatisation process via the National Council on Privatisation. He suggested selling the refineries “as is” to credible investors who can decide the best way to upgrade or expand them.
“The most transparent path is to sell the refineries as they are and allow buyers to decide their future,” he said, warning that the current arrangement could expose the country to contractual disputes and financial liabilities in the future.
The expert also criticised what he described as repeated policy missteps, noting that calls for privatisation had been made years earlier without action, while the refineries continued to underperform.
Nigeria has four state-owned refineries located in Port Harcourt, Warri, and Kaduna, with a combined capacity of about 445,000 barrels per day. Yet, despite reportedly investing over ₦11 trillion between 2010 and 2023, these facilities have struggled with persistent inefficiencies and extended periods of shutdown.
Recent efforts to restart operations have hit some bumps. The Warri refinery, which came back online in December 2024, was shut down soon after over safety issues, while the Port Harcourt refinery, which restarted in November 2024, faced another closure in May 2025.
Earlier in February, Group Chief Executive Officer of NNPC, Bashir Ojulari, stated that the refineries were no longer commercially viable in their current state, further highlighting the challenges facing government-owned refining assets.
Kunle maintained that NNPC should redirect its focus toward boosting oil and gas production and strengthening energy supply, rather than investing further in assets he believes are better suited for privatisation or liquidation.
