NNPC Partners with Chinese Firms to Revive Refineries

The Nigerian National Petroleum Corporation (NNPC) signed a memorandum of understanding on April 30 with two Chinese industrial firms, including Sanjiang Chemical Company, to revive two government-owned refineries. This initiative involves the use of $2.4 billion in public funds, yet it has not produced any refined fuel.

The article critiques Nigeria's historical attempts at refinery privatization, highlighting that $3.5 billion was reportedly spent rehabilitating three refineries without achieving consistent operational success. It references the privatization of the Port Harcourt refinery, where a 51% stake was sold to Bluestar Oil for $561 million on May 17, 2007, and the Kaduna refinery, which was sold for $160 million shortly thereafter.

The article emphasizes the lack of transparency and genuine competition in the bidding process for these privatizations, suggesting that local players are often sidelined in favor of foreign interests.