The Nigerian National Petroleum Company Limited (NNPC Ltd) recently announced a “Technical Equity Partnership” involving two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. Former Vice-President Atiku Abubakar has demanded that the partnership be immediately suspended and subject to full public scrutiny.
The oil company’s announcement that it was partnering with Chinese companies for refinery rehabilitation was covered by Daily Trust.
However, the amount involved was not disclosed, which raised questions regarding transparency.
Atiku characterised the agreement as yet another risky gamble with Nigeria’s economic future in a statement released by his Senior Special Assistant on Public Communication, Phrank Shaibu. He accused the Tinubu administration of trying to mortgage vital national assets through opaque arrangements devoid of technical credibility, transparency, and national accountability.
The statement said, “It is shocking and offensive that the NNPC is once again asking Nigerians to trust another experiment built on secrecy and questionable competence after wasting over $2.5 billion on endless refinery rehabilitation scandals.”
Independent evaluations of the two Chinese companies involved in the Memorandum of Understanding indicate that neither company has the experience, technical proficiency, or international standing necessary for the management and rehabilitation of sophisticated crude oil refineries like those in Warri and Port Harcourt.
The statement noted that Sanjiang Chemical, though a legitimate petrochemical company, is fundamentally a downstream fine chemicals manufacturer specializing in surfactants, ethylene oxide, methanol-to-olefins, and light hydrocarbon processing — not crude oil refining.
Sanjiang has never constructed, run, or overseen a large-scale crude oil refinery the size and complexity of Port Harcourt or Warrirefineries, according to any publicly accessible evidence anywhere in the world. According to Atiku, “processing petrochemical derivatives is not the same as operating an ageing national refinery burdened with decades of operational decay.”
The second company, Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd., is even more concerning because it seems to have no verifiable experience in hydrocarbon processing, petroleum engineering, or refinery operations.
“Xingcheng is essentially an industrial park and infrastructure management company by every available corporate and industry record – the equivalent of giving a hospital’s intensive care unit to a real estate developer just because they can build buildings,” the statement continued.
Atiku also questioned why the Federal Government and NNPC would purposefully avoid well-known refinery engineering and EPC companies with track records in favour of organisations whose histories are more dubious than trustworthy.
The former vice president cautioned that the Tinubu administration runs the risk of transforming Nigeria’s refineries into yet another costly black hole of broken promises, careless experimentation, and shady dealings.
“It is unacceptable that Nigerians are being told to celebrate a Memorandum of Understanding signed with companies whose core expertise does not align with the technical realities of refinery rehabilitation after years of failed Turnaround Maintenance scams, billions of dollars squandered, and repeated lies about refinery functionality.”
Concerning financial indicators about Sanjiang Chemical itself were also mentioned in the statement. Despite being listed on the Hong Kong Stock Exchange, the company is said to be under liquidity pressure and to be experiencing declining revenues, shrinking profitability, and significant short-term debt exposure.
“This raises a fundamental question: how exactly does a company intend to bear the burden of reviving two of Africa’s most troubled refineries if it is already battling financial compression and liquidity concerns in its own operations?” Atiku asked.
The entire agreement, according to the former vice president, has the unsettling hallmarks of yet another hurried and inadequately examined agreement intended more for headline propaganda than long-term national interest.
These agreements’ dubious nature is a blatant example of the Tinubu Administration’s influence on public sector funding, where every policy decision leaves a trail of dishonesty and corruption.
“Nigerians must not allow the same individuals who destroyed the refineries due to corruption and incompetence to now continue the cycle of deceit by hiding behind ambiguous Chinese partnerships.”
As a result, Atiku demanded:
the prompt release of the MoU’s complete terms;
a clear technical due diligence report on both companies;
disclosure of Nigeria’s anticipated financial obligations and liabilities;
open competition between reputable refinery operators worldwide;
Additionally, there should be a thorough legislative investigation into the billions that were previously spent on refinery rehabilitation without any discernible outcomes.
“The days of NNPC signing ambiguous contracts overseas and expecting Nigerians to applaud without question are over. National resources should not be used as playthings for bureaucratic experimentation. The refineries in Warri and Port Harcourt are too important to be left to corporate conjecture, obscurity, and uncertainty.
Nigerians are keeping a close eye on any agreements that further jeopardise the nation’s energy security and economic future, the statement warned, and they will hold everyone accountable.
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