Abuja: 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 state-owned refineries. Mba-Kalu, who is also the Executive Director of Africa International Trade and Commerce Research, said this in an interview with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, Mba-Kalu was reacting to the recent Memorandum of Understanding (MoU) signed by the NNPC Ltd. with two Chinese companies for Technical Equity Partnership (TEP) to support the completion and operation of the Port Harcourt and Warri refineries. The MoU, signed with Sanjiang Chemical Company Ltd. and Xingcheng (Fuzhou) Industrial Park Operation and Management Company Ltd. in China, is expected to support a potential TEP, covering these two refineries.
The Federal Government had spent 2.39 billion dollars under the previous administration to repair the refineries. Only the Port Harcourt Refinery was completed, with production starting in November 2024. However, it was shut down in May 2025 amidst controversy over its output. The NNPC Ltd. stated that the refineries were shut after internal reviews revealed they were operating at ‘monumental losses’ and destroying value for the country.
Mba-Kalu commented that the proposed NNPC-China Technical Equity Partnership could become a turning point for Nigeria’s refining sector if implemented as a genuine commercial and performance-driven arrangement. He highlighted that Nigeria’s public refineries have become symbols of repeated public expenditure without commensurate economic returns. Despite billions spent on maintenance and rehabilitation, the country still heavily relies on imported petroleum products.
He emphasized that the major issue is not whether Nigeria should engage foreign technical partners, but whether the right institutional, commercial, and accountability framework exists to guarantee success. He noted that previous efforts have weakened public trust due to repeated announcements, commissioning ceremonies, and large public spending without sustainable operations.
Mba-Kalu suggested that the proposed TEP could be effective if it introduces credible partners with proven engineering competence, financing capacity, operational discipline, and direct commercial exposure to refinery performance. He warned that repackaging old contracts under a new structure could repeat past failures.
He called for the NNPC Ltd. and Federal Government to address critical questions regarding previous rehabilitation projects to build public confidence. This includes querying the failure of earlier maintenance contracts, conducting and publishing post-project assessments, and holding individuals or institutions accountable for non-performance.
Mba-Kalu outlined necessary conditions for the success of the proposed partnership, advocating for transparent contract terms, independent technical oversight, clearly defined performance benchmarks, and commercial management of refinery operations. He stressed the importance of insulating operations from political interference and called for quarterly public accountability reports from NNPC Ltd.
Furthermore, he recommended technology transfer and local capacity development through structured training programs, as well as an independent audit of previous rehabilitation efforts to learn from past failures. He concluded that without transparency, independent oversight, enforceable milestones, and public accountability, the partnership may become another costly episode in Nigeria’s long history of unsuccessful refinery rehabilitation.