Coalition demands accountability over $3.5bn refinery rehabilitation spending

The Coalition for Oil Sector Reforms and Accountability has called on the Nigerian National Petroleum Company Limited (NNPCL) to provide a full account of over $3.5 billion allegedly spent on refinery rehabilitation projects before entering into fresh agreements with Chinese firms.

The demand was made on Friday during a press conference in Abuja, where Tekeme Umukoro, the National President of the coalition, faulted what he described as a repeated pattern of waste, secrecy and failed promises surrounding Nigeria’s refineries.

The coalition’s reaction followed the recent signing of a Memorandum of Understanding 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 new arrangement had revived concerns over transparency and accountability, particularly given the billions of dollars previously committed to refinery repairs without tangible outcomes.

“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 lamented that despite the huge investments made in the refineries over the years, none of the facilities was operating optimally at commercial capacity.

According to the group, more than $1.5 billion was reportedly spent on the rehabilitation of the Port Harcourt refinery alone, 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 stated.

“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 also questioned the lack of publicly available audit reports and operational records linked 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 queried.

The group further raised concerns over comments by Bayo Ojulari, the Group Chief Executive Officer of NNPCL, suggesting a shift from conventional contractor-led rehabilitation to a technical equity partnership arrangement.

“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 warned that the proposed partnership with the Chinese firms could also have long-term implications for governance and national energy sovereignty.

“This suggests that foreign entities may eventually take strategic operational positions within Nigeria’s refining infrastructure,” the statement said.

“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 release of a comprehensive audit report covering all refinery rehabilitation spending from 2015 to date.

It also urged the National Assembly to launch a public investigation into refinery rehabilitation expenditures over the last decade.

In addition, the coalition asked President Bola Tinubu to direct anti-corruption agencies to probe any evidence of financial misconduct linked 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.”