Manny Ita –
NNPC Limited has signed a Memorandum of Understanding with two Chinese firms to support the rehabilitation and expansion of the Warri and Port Harcourt refineries in a renewed effort to restore Nigeria’s refining capacity. The agreement was signed in Jiaxing City, China, involving NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, alongside representatives of Sanjiang Chemical Company and Xinganchen Industrial Park.
The partnership is aimed at completing outstanding rehabilitation work at the refineries while also managing their future operations and maintenance. It also includes plans to improve efficiency, raise product quality, and boost overall profitability. Beyond refining, the agreement extends to petrochemical development and the creation of gas-based industrial hubs intended to support wider downstream industrial activity in Nigeria.
The deal comes after months of technical and commercial discussions and follows NNPC’s broader push to revive its long-dormant refinery assets. The facilities had been shut down after repeated operational setbacks, with earlier maintenance efforts failing to deliver stable production. Internal assessments later showed that the refineries were running at significant losses, which contributed to their suspension and renewed calls for structural reform in the downstream sector.
Despite past failures, NNPC has maintained that it will not sell the refineries, instead opting for strategic partnerships that bring in foreign technical expertise and investment. The new MoU is part of that approach, which aims to combine rehabilitation with long-term operational sustainability.
If successfully executed, the collaboration could reduce Nigeria’s dependence on imported fuel, improve domestic supply stability, and strengthen the country’s industrial base. However, the agreement remains an initial framework, and its impact will depend on how effectively the rehabilitation and management plans are carried out over time.
