Nigerian Petroleum Company NNPCL Fails To Account For $3.5billion Refinery Rehabilitation Funds Amid Calls For Probe

A coalition of civil society groups under the banner of the Coalition for Oil Sector Reforms and Accountability has accused the Nigerian National Petroleum Company Limited (NNPCL) of failing to account for over $3.5billion allegedly spent on the rehabilitation of Nigeria’s refineries, despite the facilities remaining largely non-functional. The coalition made the allegations on Thursday during a world press conference held in Abuja. The group also criticised the recent Memorandum of Understanding signed by NNPCL with 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. Addressing journalists, the coalition National President, Dr. Tekeme Umukoro said the fresh agreement raised serious concerns about transparency, accountability and national energy sovereignty, especially as previous refinery rehabilitation projects had allegedly consumed billions of dollars without delivering sustainable results. “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,” the coalition said. “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 group stated that after spending over $3.5 billion on refinery rehabilitation over the years, Nigeria still lacks functional state-owned refineries operating at optimal commercial capacity. According to the coalition, 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 under different turnaround maintenance programmes. “Yet, despite these huge expenditures, ordinary Nigerians continue to suffer the consequences of fuel import dependency, unstable energy costs, and repeated supply disruptions,” the group lamented. “This represents not just policy failure, but a monumental tragedy of public accountability.” The coalition queried why public institutions continued announcing new refinery agreements without first explaining how previous investments were utilised. “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?” the coalition asked. “These are not political questions. They are legitimate accountability questions that every responsible government institution should answer transparently.” The coalition also referenced recent comments by the Group Chief Executive Officer of NNPCL, Bashir Bayo Ojulari, who reportedly said the company was moving away from traditional contractor-led refinery rehabilitation models toward a technical equity partnership framework. According to the group, the statement amounted to an indirect admission that previous rehabilitation efforts had failed despite the huge sums spent. “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 declared. The group further warned that the newly proposed partnership with Chinese firms could expose Nigeria’s strategic energy infrastructure to unclear foreign control if not subjected to public scrutiny and legislative oversight. “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 coalition queried. The coalition stressed that it was not opposed to foreign partnerships but insisted that any agreement involving national assets must be transparent and accountable. As part of its demands, the coalition called for the immediate publication of a comprehensive audit report covering all refinery rehabilitation funds spent from 2015 to date. "We demand for the immediate publication of a comprehensive audit report detailing all funds spent on refinery rehabilitation projects from 2015 to date. Nigerians deserve a transparent breakdown of all contracts, payments, project timelines, contractors involved, and implementation outcomes connected to the Port Harcourt, Warri, and Kaduna refineries. "We call on the National Assembly, particularly its committees on petroleum resources and public accounts, to immediately commence a public investigative hearing into refinery rehabilitation expenditures over the past decade. The Nigerian people deserve to know how billions of dollars were spent with so little to show for it. "We urge President Bola Tinubu to direct all relevant anti-corruption and accountability agencies to investigate any evidence of financial misconduct, procurement violations, or abuse connected to past refinery rehabilitation contracts. Public resources cannot continue disappearing without consequences. "We demand that the full terms of any proposed technical equity partnership with the Chinese firms be subjected to legislative oversight and public transparency before implementation. Nigerians must not wake up one day to discover that critical national energy assets have quietly been transferred under unclear arrangements. "We call on the media, labour unions, civil society organisations, and professional bodies not to allow this matter disappear from public discourse," the group stated. The Coalition insisted, “We must never normalise waste. We must never become comfortable with failure." “Nigeria deserves functional refineries. Nigeria deserves transparent institutions. Nigeria deserves accountability. And above all, Nigerians deserve the truth,” the coalition stated.