After what turned out to be a disastrous waste of colossal $2.39 billion public fund on the rehabilitation of the nation’s refineries, the Nigerian National Petroleum Company Limited (NNPC Ltd) has again entered into another agreement with two Chinese firms in what it described as “a renewed bid to revive” the Nigeria’s comatose refining sector.
The NNPC Ltd specifically signed a Memorandum of Understanding (MoU) with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd to explore a Technical Equity Partnership (TEP) for the completion and long-term operation of the Port Harcourt and Warri refineries.
The agreement, it was gathered was finalised and signed on April 30, 2026 in Jiaxing City, China between Mr. Bashir Bayo Ojulari, Group Chief Executive Officer of the NNPC Ltd and the chairmen of the two partner firms, Guan Jianzhong and Bill Bi respectively.
A statement by the Chief Corporate Communications Officer, of the NNPC Ltd, Andy Odeh, the partnership is expected to support the restart, optimisation, and expansion of Nigeria’s key refining assets, adding that the move comes amid lingering questions over the effectiveness of previous rehabilitation efforts, which gulped billions of dollars, but yielded only limited results.
The Port Harcourt refinery, which reportedly resumed production in November 2024 after a $1.5 billion overhaul based on approval by the Federal Executive Council, was directed to be shut down by Mr. Ojulari, shortly after he assumed office as Group Chief Executive Officer of the NNPC Ltd and barely six months of operation.
In the same vein, the Warri refinery in particular which received a share of the $1.48 billion approved for the rehabilitation of both Warri and Kaduna plants in 2021, was yet to deliver meaningful output despite phased repair timelines that spanned over six years.
The Federal Government through the former Minister of State for Petroleum Resources, Timipre Sylva, assured Nigerians that the projects would restore refining capacity and reduce dependence on imported petroleum products which was also expected to bring about reduction in cost of refined petroleum products.
But stakeholders and key industry observers have raised serious issues over lack of transparency and accountability that surrounded the rehabilitation contracts, particularly against the backdrop of dormancy of the refineries.
A statement by Ojulari described the new MoU as a “significant milestone” after more than six months of engagement between NNPCL and its prospective Chinese partners, stressing that the collaboration would focus not only on refining but also on developing co-located petrochemical and gas-based industries to improve commercial viability.
According to Ojulari; “All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets”.
Curiously, the NNPC Ltd did not disclose the financial implications of the new agreement, a development that is again raising eye brawl over transparency in the management of Nigeria’s oil infrastructure.
Oil sector analysts are of the view that the success of the new partnership will depend largely on governance reforms, technical expertise, and strict performance benchmarks.
Nigeria has over the decades struggled with dysfunctional state-owned refineries, thus forcing the country to rely heavily on importation of petroleum products despite its crude oil wealth.
On how this latest partnership will deliver results against failed past experiences, remains a critical question for policymakers, investors, and millions of Nigerians affected by persistent fuel supply challenges.
