The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has backed the partnership between the Nigerian National Petroleum Company Limited (NNPCL) and Chinese investors aimed at rehabilitating the Warri and Port Harcourt refineries, describing the move as a necessary step toward strengthening local refining capacity and reducing Nigeria’s dependence on imported petroleum products.
In a statement issued on Thursday, NUPENG President, Salimon Akanni Oladiti, said the proposed collaboration could help address long-standing supply challenges within the downstream sector and ease pressure on consumers facing persistent increases in fuel and transportation costs.
The agreement involves a Memorandum of Understanding between NNPCL and Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, under a Technical Equity Partnership arrangement designed to support the completion and operation of the refineries.
According to the union, the prolonged underperformance of state-owned refineries has contributed significantly to Nigeria’s continued reliance on imported refined petroleum products despite the country’s status as one of Africa’s major crude oil producers.
NUPENG noted that the decline in domestic refining capacity over the years has worsened inflationary pressures, weakened the naira and increased the cost of energy distribution across the economy.
The union further stated that workers and consumers have continued to face the impact of unstable fuel supply, rising transport fares and higher living expenses linked to the country’s refining limitations.
Oladiti said the partnership with the Chinese firms presents an opportunity to reposition Nigeria’s oil and gas industry, improve local refining output, create employment opportunities and reduce the economic strain associated with large-scale fuel importation.
He, however, cautioned against a repeat of past refinery rehabilitation efforts that consumed substantial public funds without delivering sustainable results.
The labour leader stressed the need for transparency, accountability and timely execution of the project, noting that Nigerians expect the refinery rehabilitation to translate into tangible economic benefits and improved energy security.
NUPENG also urged the Federal Government and NNPCL to sustain policies that prioritise local refining development, strengthen the downstream sector and support broader economic stability.