NNPC Opens Talks with Chinese Firm to Revive Refineries

Nigeria’s refining sector may see new momentum as the Nigerian National Petroleum Company (NNPC) Limited begins talks with a major Chinese petrochemical firm to revive one of its state-owned refineries.

NNPC’s Group Chief Executive Officer, Bayo Ojulari, disclosed the move at the Nigeria International Energy Summit 2026 in Abuja, describing it as part of a broader strategy to attract experienced refinery operators as equity partners.

Ojulari explained that an internal review in 2025 revealed the refineries were running at huge losses due to high operating costs and heavy contractor spending despite low utilisation.

“The first thing that became clear is that we were running at a monumental loss to Nigeria. We were just wasting money,” he said.

He stressed that NNPC’s new approach is to bring in operators with proven track records.

“We are not looking for contractors. We are looking for an entity that runs refineries. We are looking forward to them buying some of our shares, so they have a skin in the game,” Ojulari noted.

Ojulari confirmed he had met with a Chinese company “that has one of the biggest petrochemical plants in China,” adding that while NNPC is not planning an outright sale, it is open to relinquishing equity to secure sustainable operations.

The company began a detailed review of its refineries in Port Harcourt, Warri, and Kaduna in October 2025, assessing configuration, costs, maintenance, and commercial viability.

The exercise is part of NNPC’s downstream reform agenda to align with international best practices.

Nigeria has long struggled to rehabilitate its ageing refineries, spending about $4 billion on turnaround maintenance with little success.

The facilities have operated far below capacity, leaving the country dependent on fuel imports and vulnerable to foreign exchange pressures and supply disruptions.

Ojulari said reforms, including improved pipeline security and community surveillance, are creating a more stable environment for future partnerships. Successful revival of the refineries, he added, would reduce import dependence, strengthen energy security, and support Nigeria’s economic sovereignty.