The Nigerian National Petroleum Company Limited (NNPC) has initiated structured negotiations with a major Chinese petrochemical company about restoring one of its state-owned refineries. This move is part of a deliberate shift to involve external operational partners with proven technical expertise. The company’s leadership is pursuing equity-based partnerships rather than continuing with unprofitable, contractor-led models. “NNPC opens talks with Chinese firm to revive refinery – Nairametrics” reflects the latest phase of Nigeria’s long-standing efforts to turn around its ailing refining infrastructure.
In a detailed statement at the Nigeria International Energy Summit 2026 in Abuja, NNPC’s Group Chief Executive Officer, Bayo Ojulari, confirmed that the review of internal performance data showed persistent losses, high costs, and low refining throughput across its major plants. These findings have dissuaded the company from solely relying on traditional maintenance or contractor arrangements. Instead, NNPC is now prioritising partners that bring refinery operation experience and financial capacity to the table. This strategy is designed to build refineries capable of self-sustaining operations.
The discussions with the Chinese company are among several advanced talks with potential investors. The Chinese firm under consideration reportedly owns one of the largest petrochemical facilities in China and is scheduled to inspect the refinery operations directly. “I’m just coming from a meeting with one of the potential investors,” Ojulari said, describing the firm’s forthcoming inspection of the site.
NNPC’s board has formally endorsed a strategy to seek equity partners with operational credibility rather than continuing with low-yield Engineering, Procurement and Construction (EPC) or maintenance contracts that have historically failed to stabilise performance. These contracts often resulted in significant cost escalation without addressing systemic operational deficiencies. The new approach requires investors to hold a meaningful stake in the refineries, aligning incentives and sharing in both risks and potential long-term gains.
The broader context for these discussions is Nigeria’s repeated failure to rehabilitate its refineries despite substantial public spending. State-owned facilities in Port Harcourt, Warri, and Kaduna have historically operated far below capacity and under financial strain, forcing Nigeria to depend heavily on imported fuels. With domestic refining output negligible, foreign exchange stress and periodic supply disruptions have become routine. Strategic partnerships are intended to reverse these outcomes.
NNPC has been explicit that it is not divesting complete ownership of its refining assets. Instead, it wants to cede selective equity to ensure that operators have “skin in the game” and a commercial imperative to optimise performance. This calibrated opening of equity is rooted in the belief that financially engaged operators are better positioned to manage complex refinery dynamics and sustain long-term operations. “They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China,” Ojulari added.
For Nigeria’s energy sector, successful implementation of this strategy could reduce reliance on fuel imports, improve supply reliability, and strengthen economic resilience. The outcome will depend on whether these equity partners commit capital, adopt modern operational practices, and build institutional capacity within NNPC. If these conditions are met, domestic refining could transition to a more competitive and commercially viable footing.
