The Nigerian National Petroleum Company (NNPC) Limited has initiated talks with a major Chinese petrochemical firm as part of a new strategy to revive the country’s ailing state-owned refineries by bringing in experienced international operators as equity partners.
Group Chief Executive Officer, Bayo Ojulari, disclosed the move during the Nigeria International Energy Summit in Abuja, stating the board has approved a shift from contractor-led arrangements to partnerships with entities that have a proven track record of running refineries profitably.
Okay News reports that Ojulari emphasized the company is not looking for contractors or maintenance firms but for partners who will purchase equity stakes, ensuring they have “skin in the game” to transform the facilities.
This follows an internal review which revealed the refineries were operating at huge losses due to high costs and low processing volumes, leading to the shutdown of the recently rehabilitated Port Harcourt refinery in 2025 just months after its reopening.
The talks form part of a broader technical and commercial review of the Port Harcourt, Warri, and Kaduna refineries aimed at determining their viability and aligning them with international best practices. Nigeria has spent approximately $4 billion on turnaround maintenance over decades with minimal results, forcing Africa’s largest crude oil producer to remain heavily dependent on imported fuel, which exacerbates foreign exchange pressure and causes frequent supply disruptions.
Ojulari stated that while NNPC is not planning an outright sale, it is willing to relinquish significant equity to secure a sustainable operating model. This partnership approach, coupled with improved pipeline security, is seen as crucial for finally achieving operational refineries, reducing import dependence, and strengthening Nigeria’s energy security and economic sovereignty after years of underperformance.
