NNPC in Advanced Negotiations with Chinese Petrochemical Firm to Revive Nigeria's Refineries
The Nigerian National Petroleum Company Limited (NNPC) has entered into advanced discussions with a prominent Chinese petrochemical company and several other potential investors in a strategic move to revitalize the country's four long-dormant refineries. This development represents a significant shift in Nigeria's approach to addressing its persistent refinery challenges.
Strategic Shift Toward Equity Partnerships
Bayo Ojulari, the NNPC Group Chief Executive, revealed these ongoing negotiations during the Nigeria International Energy Summit 2026 in Abuja. Speaking at a fireside chat titled "Securing Nigeria's Energy Future," Ojulari emphasized that the company is actively seeking equity partners with demonstrated expertise in refinery operations rather than continuing with traditional contractor arrangements.
"We are looking for entities that run refineries," Ojulari stated. "We are not selling the refineries, but we are prepared to relinquish some equity so that partners have skin in the game."
This approach marks a fundamental departure from previous government-dominated control models toward commercially driven operations designed to reverse years of financial losses and operational inefficiencies.
Addressing Decades of Underperformance
Nigeria's four refineries located in Port Harcourt (comprising two plants), Warri, and Kaduna have a combined installed capacity of 445,000 barrels per day but have operated far below capacity for decades. An internal review conducted by NNPC revealed these facilities have been running at significant losses with high operating costs and minimal processing volumes.
The review highlighted years of underperformance despite billions of dollars spent on repeated turnaround maintenance efforts. This chronic underperformance has forced Nigeria to import most of its refined petroleum products despite being Africa's largest crude oil producer.
Chinese Company's Involvement and Inspection Plans
The Chinese petrochemical firm involved in discussions owns one of China's largest petrochemical plants and is scheduled to inspect one of Nigeria's refineries as part of the evaluation process. According to Ojulari, NNPC is simultaneously engaging with multiple other interested parties, indicating broad international interest in Nigeria's refinery rehabilitation efforts.
The NNPC board has approved a comprehensive strategy to bring technically competent partners capable of sustaining operations and restoring profitability to these critical national assets. "The goal is to establish a self-financing, sustainable refinery system that runs like a business," Ojulari emphasized.
Broader Context and Domestic Developments
Ojulari noted that the recent commencement of operations at the Dangote Refinery has provided Nigeria with valuable "breathing space" for domestic fuel supply. This development has allowed NNPC to temporarily pause operations at its state-owned refineries while exploring sustainable partnership options.
In related developments, Clarivo Oil and Gas Ltd has announced plans to construct a world-class oil refinery in Calabar. Company representative Obidike Chukwuebuka revealed that the proposed facility will be developed in multiple phases featuring state-of-the-art technologies designed to produce high-quality petroleum products. The company projects the refinery could become operational within approximately five years, pending regulatory approvals and successful completion of project phases.
These combined efforts represent Nigeria's multi-pronged approach to addressing its refining capacity challenges through both public-private partnerships and private sector initiatives.
