By Yunus Yusuf
A petroleum economist, Prof. Wumi Iledare, says NNPC Ltd.’s new agreement with two Chinese firms could revive Nigeria’s troubled refinery rehabilitation efforts.
Iledare, Professor Emeritus of Petroleum Economics, shared the view during an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
He described the Memorandum of Understanding (MoU) as a potentially significant move toward resolving long-standing operational and technical setbacks.
The agreement was signed between NNPC Ltd., Sanjiang Chemical Company Ltd., and Xingcheng Industrial Park Operation and Management Company Ltd. in China.
The arrangement is expected to support a proposed Technical and Engineering Partnership involving the Port Harcourt and Warri refineries.
Iledare said the MoU was not yet a binding commercial agreement or final investment commitment
He, however, noted that it reflected deliberate efforts to attract technical expertise, operational support, and possible capital investment.
“Such partnerships can create pathways for operational recovery if structured and executed with discipline,” he said.
According to him, Nigeria’s downstream petroleum sector requires strategic collaborations capable of delivering measurable performance improvements.
He explained that both refineries had suffered prolonged shutdowns, maintenance delays, and repeated rehabilitation setbacks over the years.
“The country needs solutions driven by competence, accountability, and commercial realism,” he stated.
Iledare said the partnership could accelerate technical rehabilitation through improved engineering coordination and modern maintenance systems.
He added that exposure to contemporary refining practices could improve operational efficiency and reduce costly system failures.
According to him, the arrangement may also support technology transfer and workforce development within Nigeria’s refining sector.
“Nigerian professionals can benefit from direct exposure to modern operational systems and technical processes,” he said.
He noted that such collaboration could build local capacity and reduce reliance on foreign technical support.
“If properly structured, it could strengthen long-term sustainability and reduce dependence on external expertise over time,” he said.
The professor, however, warned that implementation remained the most critical challenge facing the arrangement.
He said financing clarity, regulatory approvals, and institutional commitment would determine whether the agreement achieves expected results.
Iledare stressed that transparency must remain central, considering Nigeria’s history of costly refinery rehabilitation programmes.
“Stakeholders expect governance, accountability, and measurable outcomes from every investment decision,” he said.
He added that clear performance benchmarks and regulatory oversight would be necessary throughout implementation.
“Ultimately, the success of the partnership will not be judged by the MoU announcement.
“But by whether it delivers commercially viable, operationally efficient, and nationally beneficial outcomes for Nigeria’s downstream petroleum sector,” Iledare said. (NAN)
