Economist Urges Caution on Nigeria Refineries MoU to Safeguard Public Funds

The director/chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, has urged caution in the handling of the recent Memorandum of Understanding (MoU) concerning Nigeria’s refineries, stressing the need for well-structured partnerships that protect public funds.

Yusuf noted that while the details of the MoU are yet to be made public, Nigeria has, over the years, committed substantial financial resources to refinery rehabilitation projects without achieving commensurate results.

He stressed that any new arrangement must be carefully designed to reduce the financial burden on both the government and citizens, adding that transparency and accountability should be central to any agreement.

According to him, partnerships involving Chinese firms or other foreign investors could be beneficial if they include meaningful financial contributions and technical expertise aimed at restoring the refineries to full productivity.

He explained that such a model would allow for a balanced framework in which returns on investment are fairly shared, ensuring that all parties have a vested interest in the success of the operations.

Yusuf further argued that leaving the refineries idle is not a viable option and advocated for either effective public-private partnerships or full privatization as a more sustainable solution.

He also recalled previous refinery rehabilitation efforts, including significant loans taken for refurbishment projects that failed to deliver expected operational outcomes.

“To prevent further financial strain, it is vital that the government exercises care in any future commitments.

This strategic direction can help create a more sustainable path for the refineries and ensure that resources are managed responsibly,” he said.