NNPC, Chinese Firm in Talks over Nigeria’s Moribund Refineries

By Adedapo Adesanya

The Nigerian National Petroleum Company (NNPC) Limited is in talks with a Chinese company over one of the state-owned oil firm’s refineries, the chief executive of the state oil company, Mr Bashir Bayo Ojulari, said.

He said the company was seeking experienced operators as equity partners to revive its four refineries after years of losses and underperformance.

The NNPC chief said an internal review carried out shortly after assuming his role last April showed the refineries were running at huge losses, with high operating costs and heavy spending on contractors while processing volumes remained low.

Mr Ojulari said that the board of the state oil company has approved a strategy to bring in refinery operators with proven expertise rather than contractors, adding it was in advanced talks with several interested parties.

“I’m just coming from a meeting with one of the potential investors,” Mr Ojulari said, without giving a name. “They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China.”

The NNPC head stated that operations in the refineries had been put on hold to give time to evaluate potential restoration solutions.

This coincided with the opening of the Dangote Refinery, which provided “breathing space” for the supply of domestic petroleum.

For the past two years, the NNPC has unsuccessfully attempted to fully reactivate the state oil refineries in Warri, Kaduna, and Port Harcourt, which have a combined processing capacity of 445,000 barrels per day but have remained idle for decades.

These endeavors to restore the facilities to operational status have resulted in both public controversy and shifts in strategic direction.

The government initially sought to rehabilitate these refineries, primarily in response to the commissioning of Dangote’s 650,000-barrel-per-day oil refinery; however, this effort proved unsuccessful, necessitating an exploration of potential public-private partnerships.

In October 2025, the NNPC announced its search for new technical private equity partners to facilitate the revival of its long-dormant refineries.