KEY POINTS
- NNPC is in talks with a Chinese petrochemical company to revive one of its state-owned refineries through an equity partnership model.
- The company is shifting away from contractor-led operations toward bringing in experienced refinery operators with financial stakes.
- Reviving Nigeria’s refineries could reduce fuel imports, ease forex pressure, and strengthen the country’s energy security.
Nigeria’s domestic refining capacity may soon receive a significant boost as the Nigerian National Petroleum Company Limited, NNPC, begins discussions with a major Chinese petrochemical firm over the possible revival of one of its state-owned refineries.
The disclosure was made by the Group Chief Executive Officer of NNPC, Bayo Ojulari, during a fireside chat at the Nigeria International Energy Summit 2026 in Abuja on Wednesday.
Ojulari said the engagement forms part of a wider plan to attract experienced refinery operators as equity partners to rehabilitate NNPC’s four refineries, which have suffered years of poor utilisation, high operating costs, and sustained financial losses.
Shift from contractors to equity partners
According to Ojulari, an internal review conducted shortly after he assumed office in April 2025 revealed that the refineries were bleeding cash, largely due to excessive operating expenses and heavy contractor payments despite processing very low volumes of crude.
Based on the findings, the NNPC board approved a new strategy that prioritises partnerships with companies that have a proven track record of running refineries, rather than engaging contractors for operations and maintenance.
“The current NNPC strategy, as approved by our board, is to focus on getting partners that have a track record of running refineries. We are not looking for contractors. We are not looking for operations and maintenance,” Ojulari said.
He explained that the company is open to selling down portions of its equity in the refineries to credible operators so that they have a direct financial stake in performance.
“We are looking for an entity that runs refineries. We are looking forward to them buying some of our shares. So when you say sell, we will not say we are selling the refineries,” he added.
Chinese firm emerges as potential investor
Ojulari disclosed that NNPC is already in discussions with at least one potential investor, a Chinese company that operates one of the largest petrochemical plants in China.
He stressed that NNPC is not pursuing an outright sale of the assets but is willing to relinquish as much equity as necessary to secure a sustainable financing and operating model.
The goal, he said, is to ensure the refineries are commercially viable and capable of competing with modern facilities globally.
