NNPC’s Latest Clarification Underscores Nigeria’s Refinery Trust Deficit-Ogundipe

A former President of the Nigeria Union of Journalists, Mr Lanre Ogundipe has said that the recent clarification by the Nigerian National Petroleum Company Limited regarding its China refinery arrangement deserves careful public scrutiny.

Ogundipe, whose earlier piece has generated attention by the industry watchers in an electronic mail sent to www.newsnowonline.com.ng said the reactions to the China’s MOU indicated that there is trust deficit in the NNPCL refinery management.

He said; “The recent clarification issued by the Nigerian National Petroleum Company Limited (NNPC Ltd) concerning its China refinery arrangement deserves careful public attention.

“According to the company, the understanding reached with the Chinese firms is not a fresh rehabilitation contract, but a non-binding Memorandum of Understanding intended to explore a Technical Equity Partnership for the completion, operation, and expansion of the Port Harcourt and Warri refineries.That clarification is important and welcome.

“However, 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.Public skepticism 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.”

Continuing, he said ” 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,” he added.