Refinery Revamp to Rely on Equity Partnerships, Not Govt Funds – NNPC

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that its new Memorandum of Understanding (MoU) with two Chinese firms is not a fresh spending commitment or contract award.

The agreement, signed with Sanjiang Chemical Company Limited and Xingcheng Industrial Park, is a preliminary framework to explore collaboration on completing and operating the Port Harcourt and Warri refineries.

A senior NNPC official explained: “It is not an agreement or a financial agreement. It is an understanding with the two parties who are interested in exploring opportunities to revamp and expand the capacities of the refinery.”

The MoU covers possible areas such as financing structures, operations and maintenance, petrochemical integration, and gas-based industrial projects, but no government funds will be deployed.

The official stressed that since 2025, NNPC has not approved or spent money on new refinery rehabilitation, noting that the company now operates under the Petroleum Industry Act as a commercial entity.

“No kobo has been spent on rehabilitation of the refineries, and there is no plan to commit money directly from the company’s purse,” he said.

Group CEO Bashir Bayo Ojulari has argued that Nigeria’s refining challenges are not just financial but also technical, requiring experienced partners.

He said the new equity model ensures accountability, as partners profit only when refineries perform optimally.

Ojulari added that modern refineries must evolve into integrated energy hubs, combining refining with petrochemicals, fertilizers, and gas monetisation to deliver real economic value.

The deal signals NNPC’s shift from government-funded rehabilitation to commercially viable partnerships, aiming to return Nigeria’s refineries to sustainable operations after years of costly but ineffective spending.