The Nigerian National Petroleum Company (NNPC) Limited has signed a Memorandum of Understanding (MoU) with two Chinese firms as part of a renewed effort to restart and expand the Warri and Port Harcourt refineries, which have remained inactive for months.
The agreement was signed on April 30, 2026, in Jiaxing City, China, by NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, alongside senior representatives of the partner companies, marking a significant step in Nigeria’s ongoing push to revive its domestic refining capacity and reduce dependence on imported petroleum products.
According to NNPC, the partnership is designed to address key technical and operational challenges that have hindered the performance of the refineries over the years.
The collaboration will focus on completing outstanding rehabilitation work, as well as handling the operation and long-term maintenance of the facilities to ensure they run efficiently and sustainably.
Beyond simply getting the refineries back online, the agreement also includes plans to upgrade infrastructure in a way that improves product quality, boosts output, and enhances profitability over time.
The scope of the deal goes further into expanding the refineries’ petrochemical capabilities and unlocking new opportunities in Nigeria’s gas and downstream sectors. NNPC noted that the arrangement could lead to the development of integrated industrial hubs located around the refineries, where gas-based industries and petrochemical production can thrive together.
This broader vision reflects a shift toward making the refineries not just fuel-processing plants, but key drivers of industrial growth and economic value.
Ojulari described the MoU as a major milestone achieved after months of discussions and negotiations, adding that all parties involved share a common understanding of the need to reposition Nigeria’s refining assets for long-term success.
He emphasized that bringing in technical partners with the right expertise and financial strength is critical to ensuring the refineries operate profitably and do not fall back into the cycle of inefficiency that has plagued them in the past.
The agreement comes against the backdrop of prolonged inactivity at Nigeria’s state-owned refineries, which were shut down on May 24, 2025, for maintenance that was initially expected to last only a few weeks.
However, further technical and financial reviews carried out later in 2025 revealed deeper structural and operational issues, prompting a more extended shutdown.
By February 2026, NNPC confirmed that the refineries were operating at significant losses before their closure, raising concerns about their long-term viability without major reforms and external support.
Despite these challenges, NNPC has repeatedly stated that it has no intention of selling the Port Harcourt Refining Company, maintaining that rehabilitation and strategic partnerships remain the preferred path forward.
This position comes even as past efforts, including a reported $1.5 billion rehabilitation project on the Port Harcourt refinery, failed to deliver sustained production or meaningful improvement in output.
While it is still uncertain whether the newly signed MoU will lead to a successful and lasting revival of the refineries, the move signals a more aggressive and structured approach to solving Nigeria’s refining problems.
It also aligns with NNPC’s recent financial performance, which showed a profit after tax of N276 billion for March 2026, suggesting the company may now be in a stronger position to support such large-scale projects.
Overall, the partnership represents a cautious but important step toward restoring local refining capacity, strengthening energy security, and reducing the economic pressure caused by heavy reliance on imported fuel.
