From Victor Osula, Abuja
Nigeria’s renewed push to restore its domestic refining capacity has once again, gained momentum, as NNPC Limited signed a fresh Memorandum of Understanding (MoU) with two Chinese firms to finally revive and expand the country’s long-struggling refineries.
The development was disclosed in a statement issued by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, on May 3, in Abuja, highlighting what the national oil company described as a significant step toward sustainable refining operations.
According to the statement, the MoU was executed on April 30, 2026, in Jiaxing City, China, by the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, Chairman of Sanjiang Chemical Company Limited, Guan Jianzhong, Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, and Bill Bi.
The agreement is structured around a proposed Technical Equity Partnership that will focus on completing outstanding rehabilitation works at the Port Harcourt Refining Company and the Warri Refining and Petrochemical Company. It also covers the operation and maintenance of both facilities to achieve best-in-class, sustainable performance.
Beyond rehabilitation, the collaboration outlines plans to upgrade and expand the refineries to meet cleaner fuel standards and improve commercial viability. It also includes proposals to scale up petrochemical production and develop co-located, gas-based industrial hubs that could unlock new downstream opportunities, drive industrialisation, and create jobs.
Ojulari described the MoU as a major milestone, coming after more than six months of sustained technical and commercial engagements between NNPC and the Chinese partners.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success”, he said.
He further noted that the agreement represents a critical step toward identifying capable technical equity partners who can not only restart the refineries but also ensure their efficient and profitable operation over the long term.
NNPC emphasised that while the MoU reflects a shared commitment to advance discussions in good faith, any final agreements will be subject to further negotiations and necessary regulatory approvals.
The latest move comes against the backdrop of decades of unsuccessful attempts by successive administrations to restore the nation’s ailing refineries. Once central to Nigeria’s energy security, the facilities have suffered prolonged decline due to poor maintenance, operational inefficiencies, and inconsistent policy direction.
Over the years, multiple turnaround maintenance programmes and rehabilitation contracts were awarded with limited results, despite the expenditure of significant public funds. Output from the refineries has remained far below installed capacity, forcing Africa’s largest crude oil producer to depend heavily on the imported petroleum products until the Dangote Refinery started operations.
