Nigeria’s state-owned oil company, the Nigerian National Petroleum Company (NNPC), has disclosed plans to partner with a Chinese firm to rehabilitate one of the country’s long-dormant oil refineries, as authorities reassess the future of facilities that have remained largely non-operational for decades.
The move was confirmed by NNPC chief executive Bayo Ojulari, who said the company is shifting away from traditional contracting arrangements and instead seeking partnerships with refinery operators that have proven technical and operational experience. According to Ojulari, one potential investor, a Chinese company that owns one of the largest petrochemical plants in China, is already scheduled to inspect a Nigerian refinery as part of preliminary discussions.
NNPC said refinery operations have been paused to allow for a comprehensive evaluation of viable restoration options. The reassessment comes at a time when Nigeria’s domestic fuel supply has been partially stabilised by the start-up of the Dangote Refinery, Africa’s largest, which has eased immediate pressure on fuel availability.
Rather than selling the refineries outright, Ojulari said NNPC is considering equity-sharing and partnership models, allowing private operators to take ownership stakes and help finance operations while keeping the assets under state control. The approach marks a shift from earlier positions, including comments made in November by presidential energy adviser Olu Verheijen, who said the sale of the refineries was among the options being considered.
Nigeria operates three state-owned refineries, Port Harcourt, Warri and Kaduna, with a combined installed capacity of about 445,000 barrels per day. Despite repeated rehabilitation efforts and billions of dollars in public spending, the facilities have failed to return to sustained production, forcing the country to rely heavily on imported fuel for years.
The Port Harcourt refinery, Nigeria’s oldest, was built in 1965, shortly after crude oil was first discovered in the Niger Delta. Attempts over the past two years to fully revive all three refineries have been unsuccessful, generating public criticism and prompting renewed interest in public-private partnerships.
In October 2025, NNPC announced it was seeking new technical and private equity partners to revive the facilities, following mounting doubts about the effectiveness of previous rehabilitation contracts. Those concerns were reinforced by a major corruption probe launched in May 2025 by Nigeria’s Economic and Financial Crimes Commission (EFCC) into the alleged misuse of $2.9 billion allocated for refinery repairs.
The investigation reportedly uncovered nearly ₦80 billion in accounts linked to a former refinery managing director, while several senior NNPC executives, including former group chief executive Mele Kyari, came under close scrutiny. The EFCC has since demanded detailed financial records, including emoluments and allowances of former and current executives.
Nigeria’s renewed engagement with Chinese partners reflects the urgency of resolving its long-standing refinery crisis as the country seeks greater fuel self-sufficiency. While the Dangote Refinery has provided short-term relief, the long-term fate of the state-owned refineries remains uncertain, with equity partnerships, operational concessions and possible divestment all still under consideration.
