NNPC Seals China Partnership to Fix Idle Refineries After $2.4bn Spend
Story: written by springnewsng May 5,2026
NNPC Limited has signed a new agreement with Chinese firms to revive Nigeria’s long-struggling state-owned refineries, which have consumed over $2.4 billion with little output to show.
The deal, reached in Jiaxing City, brings in Sanjiang Chemical Company Limited and Xinganchen Industrial Park under a proposed Technical Equity Partnership aimed at restoring operations at the Port Harcourt and Warri refineries.
NNPC Group CEO, Bashir Bayo Ojulari, said the collaboration is designed to unlock value from the assets and ensure long-term sustainability. The agreement covers completion of pending engineering work, followed by full-scale operations and maintenance to meet global performance standards.
The refineries in Port Harcourt and Warri were once central to Nigeria’s fuel supply but have remained largely inactive despite multiple rehabilitation efforts over the years.
Beyond repairs, the partnership also targets expansion into petrochemicals and the development of gas-based industrial hubs—an approach widely used in China’s industrial zones to drive efficiency and profitability.
The move signals a shift toward Chinese investment and technical expertise as Nigeria seeks lasting solutions to its refining challenges. However, the agreement remains at a preliminary stage, with final terms subject to further negotiations and regulatory approvals.
Industry watchers say the real test will be whether the deal translates into tangible progress, including equipment deployment and clear timelines for refinery restart.
The development comes as Dangote Refinery continues to reshape Nigeria’s fuel market, increasing pressure on government-owned plants to become competitive in cost and output.
