Ogundipe doubts NNPC over MoU with Chinese firms on P/H, Warri refineries

Breezynews
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NNPCL Group CEO, Engr. Bashir Bayo Ojulari

A former President of the Nigeria Union of Journalists, Comrade Lanre Ogundipe has queried the recent clarification by NNPC Ltd regarding its China refinery arrangement.

NNPC Ltd had stated that the Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, is to drive collaboration through a potential technical equity partnership in support of the completion and operation of the Port Harcourt and Warri refineries.

According to NNPC Ltd, the agreement is not a fresh rehabilitation contract, but a non-binding MoU.

But Ogundipe, who is a public affairs analyst and also former President of the Africa Union of Journalists, disagreed with NNPC Ltd’s position.

In a statement on Monday, he argued that the ‘broader national concern extends beyond terminology. The issue confronting Nigerians today is not merely whether the arrangement is technically classified as rehabilitation, partnership, restructuring, or operational collaboration. The deeper issue is institutional credibility, transparency, and the painful history of repeated refinery interventions that consumed enormous public resources with limited sustainable outcomes’.

He furthered said: ‘Public scepticism did not emerge in a vacuum. It is rooted in years of turnaround maintenance exercises, rehabilitation programmes, recommissioning ceremonies, optimistic declarations, and subsequent clarifications that frequently failed to translate into commercially sustainable refining performance.

‘When institutions repeatedly move from confident assurances to reactive clarifications, public distrust naturally deepens. In that context, the speed with which NNPC considered it necessary to distinguish the current China arrangement from another rehabilitation contract itself reflects the depth of the credibility challenge now confronting the organisation.

‘To be fair, the proposed shift from the old contractor-driven framework toward a technical equity partnership could represent a more commercially disciplined approach if properly structured. Bringing in technical operators and investors with operational responsibility and long-term commercial exposure may prove more sustainable than the endless maintenance cycles that characterised previous refinery interventions.

‘But Nigerians are entitled to ask legitimate questions. What precisely differentiates this arrangement from previous interventions? What measurable operational benchmarks will define success?

‘What financial obligations or exposures will Nigeria ultimately bear? What governance safeguards exist to prevent another cycle of expenditure without sustainable output? What transparency mechanisms will accompany the proposed partnership?

‘These questions are not expressions of hostility. They are expressions of institutional memory.

‘Nigeria’s refinery problem has never been purely technical. It has always been deeply connected to governance, accountability, transparency, and the ability of public institutions to convert enormous investment into measurable national value.

‘The emergence of large-scale domestic refining capacity in recent years has already altered the national conversation. Nigerians are no longer debating whether refining can work within the country. The real debate now concerns governance quality, operational discipline, commercial sustainability, and institutional trust.

‘For that reason, future refinery arrangements will increasingly be judged not by announcements, memoranda, or technical descriptions, but by verifiable operational outcomes.

‘The burden of proof, therefore, rests squarely on NNPC.

‘Institutional credibility will not be restored through clarification alone. It will be restored when performance consistently becomes stronger than explanation’.

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