• NNPC in advanced talks with Chinese firm to revive refineries

• Seeks minority partners to operate Port Harcourt, Warri, Kaduna plants

• Strategy aims to cut fuel imports, ensure profitable refinery operations

NNPC Chief Executive Bashir Ojulari said at the 2026 Nigeria International Energy Summit in Abuja that the state oil company is in advanced talks with a Chinese firm to resume operations at one of its refineries. The said firm operates one of China’s largest petrochemical complexes, Ojulari said, without disclosing its name.

NNPC is seeking partners with proven experience in industrial refinery operations to take equity stakes and operate the facilities. The goal is to rehabilitate the Port Harcourt, Warri and Kaduna refineries, which have a combined capacity of 445,000 barrels per day. A technical and commercial review was launched in October 2025 to select investors capable of ensuring operations meet international standards.

The new model prioritizes industrial partnerships based on operational performance and sustainable profitability. Three elements are essential to restarting the refineries: financing, a competent engineering, procurement and construction (EPC) contractor, and world-class operational capacity, Ojulari said, adding that this now takes priority.

A new industrial model based on operating partners

The approach marks a break from previous policies. Over the past decade, more than $25 billion has been spent on rehabilitation programs without lasting results. The refineries continued to record heavy losses due to high operating costs, extensive reliance on subcontractors and relatively low processing volumes.

Only certain units at Port Harcourt operated briefly before shutting down again. Warri never fully restarted, while Kaduna remained closed.

NNPC said it does not plan to sell its refineries outright but to sell minority stakes to partners, allowing the facilities to become self-financing and profitable. The shift comes as the phased commissioning of the privately owned Dangote refinery, with a capacity of 650,000 barrels per day, offers temporary relief to domestic fuel supply. It also forms part of a broader reform of NNPC’s economic model, aimed at reducing dependence on the federal budget and mobilizing up to $30 billion in financing by 2027.

The government justifies the strategy by pointing to Nigeria’s structural vulnerabilities. Despite being Africa’s leading crude oil producer, the country remains heavily dependent on imports of refined products, leaving it exposed to international price volatility and recurring domestic supply tensions.

If partnerships with Chinese operators materialize, NNPC hopes to cut fuel imports over the long term and, in the medium term, reposition Nigeria as an exporter of refined products. In the short term, however, higher taxes on imported fuels could increase inflationary and social pressures.

The challenge is no longer restarting the refineries but proving they can operate as profitable industrial assets, backed by partners with proven operational expertise.

Olivier de Souza