Nigeria’s state oil company is on the verge of a major partnership deal that could finally end decades of refinery dysfunction. The Nigerian National Petroleum Company Limited (NNPCL) has entered advanced discussions with one of China’s largest petrochemical operators to revive at least one of its four non-performing refineries, the company’s Chief Executive Officer, Bayo Ojulari, revealed on Wednesday.
The Chinese delegation is scheduled to conduct an inspection tour of the facility today, marking a significant step toward finalizing what could be Nigeria’s most consequential energy partnership in recent years. The move represents a dramatic shift from NNPCL’s previous strategy of relying on contractors for turnaround maintenance, which has consumed approximately $4 billion over the years with minimal results.
Ojulari disclosed that an internal review conducted shortly after he assumed office in April 2025 uncovered alarming inefficiencies: the refineries were hemorrhaging money due to astronomical operating costs and heavy contractor spending, all while processing minimal volumes of crude oil. The NNPCL board has now approved a radical new approach focused on attracting experienced refinery operators as equity partners rather than service contractors.
“We are looking for an entity that runs refineries. We are looking forward to them buying some of our shares,” Ojulari explained during a fireside chat at the Nigeria International Energy Summit 2026 in Abuja. “I’m just coming from a meeting with one of the potential investors. They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China.”
The strategy involves relinquishing substantial equity stakes to partners willing to invest in and operate the facilities, ensuring they have “skin in the game.” While NNPCL insists it is not selling the refineries outright, the company is prepared to divest as much equity as necessary to secure a sustainable operational and financial model.
This development comes as Nigeria’s domestic refining capacity receives a boost from the newly operational Dangote Refinery, which Ojulari said has provided “breathing space” for the country’s fuel supply. However, the revival of state-owned refineries remains critical to reducing Nigeria’s dependence on imported petroleum products, which has exposed the economy to foreign exchange pressure and recurrent fuel scarcity.
The company commenced a comprehensive technical and commercial review of its Port Harcourt, Warri, and Kaduna refineries in October 2025, examining refinery configuration, operating costs, maintenance history, and commercial performance. NNPCL has also overhauled its crude infrastructure security by partnering with government agencies and local community surveillance groups, moving away from sole reliance on traditional policing.
Industry observers view the Chinese partnership as potentially transformative for Nigeria’s energy security and economic sovereignty. If successful, the collaboration could restore the country’s refining capacity, reduce import dependence, stabilize fuel prices, and create thousands of jobs across the downstream petroleum sector.
Sources: orientalnewsng.com, nairametrics.com, independent.ng