An economic expert, Dr. Sand Mba-Kalu, has urged the NNPC Ltd. to ensure transparency, accountability, and robust institutional safeguards in the proposed Technical Equity Partnership for the rehabilitation of Nigeria’s state-owned refineries.
Mba-Kalu, Executive Director of Africa International Trade and Commerce Research, made the call in an interview with reporters on Sunday in Abuja.
He was reacting to the recent Memorandum of Understanding (MoU) signed by NNPC Ltd. with two Chinese companies — Sanjiang Chemical Company Ltd. and Xingcheng (Fuzhou) Industrial Park Operation and Management Company Ltd. — for a Technical Equity Partnership (TEP) to rehabilitate and operate the Port Harcourt and Warri refineries.
The Federal Government had spent $2.39 billion under the previous administration to repair the two refineries. Only the Port Harcourt Refinery was completed and began production in November 2024. However, it was shut down on May 24, 2025, amid controversy over its actual output.
NNPC Ltd. said it shut down the refinery after internal reviews revealed it was operating at “monumental losses” and destroying value for the country.
Mba-Kalu described the proposed NNPC-China Technical Equity Partnership as a potential turning point for Nigeria’s refining sector if implemented as a genuine commercial and performance-driven arrangement.
He noted that Nigeria’s public refineries have over the years become symbols of repeated public expenditure without commensurate economic returns. Despite billions of dollars spent on turnaround maintenance and rehabilitation, the country still depends heavily on imported petroleum products.
“Against this background, the recent MoU should not be dismissed outright,” he said.
“The Port Harcourt and Warri refineries have a combined installed capacity of about 335,000 barrels per day, while Nigeria’s total public refining capacity, including Kaduna refinery, is about 445,000 barrels per day,” he added.
Mba-Kalu stressed that the major issue is not whether Nigeria should engage foreign technical partners, but whether the right institutional, commercial, and accountability frameworks exist to guarantee success.
He acknowledged that Nigerians remain sceptical due to past rehabilitation efforts that produced repeated announcements and large public spending without sustainable operations.
“The proposed TEP may be a rational option if it brings credible partners with proven engineering competence, financing capacity, operational discipline, and direct commercial exposure to refinery performance,” he said.
The expert warned, however, that if the arrangement merely repackages old contracts under a new name, it could repeat the failures of the past.
He called on NNPC Ltd. and the Federal Government to address critical questions about previous rehabilitation projects to build public confidence, including why earlier contracts failed, whether assessments were conducted, and if anyone was held accountable.
Mba-Kalu outlined key conditions for success: transparent contract terms covering financing, revenue-sharing, performance milestones, penalties, and exit clauses. He also advocated independent technical oversight involving engineers, financial experts, regulators, and civil society.
He further recommended commercial management of refinery operations, insulation from political interference, quarterly public accountability reports, technology transfer, and local capacity development.
“However, without transparency, independent oversight, enforceable milestones, and public accountability, it may become another costly episode in Nigeria’s long history of refinery rehabilitation without results,” he said.
