The planned takeover and rehabilitation of the Port Harcourt and Warri refineries by Chinese firms has drawn mixed reactions from industry stakeholders and host communities, with operators hailing the move as strategic while community leaders express concerns over lack of inclusion.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has commended President Bola Ahmed Tinubu and the Nigerian National Petroleum Company Limited (NNPC Ltd) for what it described as a bold step toward revitalising the nation’s refining sector.
The association specifically lauded NNPC Ltd under its Group Chief Executive Officer, Bashir Bayo Ojulari, for signing a Memorandum of Understanding (MoU) with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. The agreement is aimed at accelerating the rehabilitation, restart and expansion of the Port Harcourt and Warri refineries.
In a statement signed by its National Public Relations Officer, Dr. Joseph Obele, PETROAN said the initiative reflects a shift toward a “technical equity partnership model” that prioritises efficiency, accountability and sustainability.
Speaking on the development, PETROAN National President, Dr. Billy Gillis-Harry, described the agreement as a timely intervention that signals a new direction for Nigeria’s refining industry.
He noted that the adoption of a performance-driven partnership model would address longstanding operational inefficiencies that plagued previous rehabilitation efforts.
“This development represents a decisive shift from past approaches that yielded limited results to a more sustainable and accountable framework,” Gillis-Harry said, adding that it would help restore Nigeria’s refining capacity and reduce dependence on imported petroleum products.
According to him, integrating refining operations with petrochemical and gas-based industrial hubs would enhance value creation, stimulate industrial growth, generate employment and improve foreign exchange stability.
He outlined expected benefits of the refinery revival to include job creation, economic growth, increased government revenue and improved socio-economic conditions for host communities in Rivers and Delta states.
PETROAN also expressed optimism that increased domestic refining capacity would encourage competition and ultimately lead to more stable and affordable fuel prices for Nigerians.
However, the association urged the Chinese partner firms to operate in strict compliance with the Petroleum Industry Act and adopt inclusive and transparent engagement with stakeholders, particularly host communities.
It warned against any “divide and rule” tactics and called for prioritisation of local content, fair employment practices and sustained community engagement to ensure long-term operational stability.
Despite the optimism in industry circles, some host community representatives have voiced dissatisfaction over what they described as their exclusion from the agreement process.
President of the Alesa Graduates Forum, Mr. Timothy Mgbere, said the Alesa Eleme community, which hosts the Port Harcourt refinery, had not been briefed on the contents of the MoU.
“We do not know what is in the MoU and we can’t react in any way yet,” Mgbere said. “It is unfortunate that the NNPCL did not deem it necessary to carry the community along.”
He warned that continued neglect of host communities could trigger actions aimed at drawing attention to their concerns.
“This is not how it should be, but this is what NNPCL always wants,” he added.
The development highlights the growing tension between policy direction at the federal level and expectations of local stakeholders, even as the federal government pushes to overhaul Nigeria’s long-troubled refining sector.
Industry observers say the success of the partnership will depend not only on technical and financial execution but also on effective stakeholder engagement, particularly with host communities whose cooperation remains critical to sustainable operations.
