KEY POINTS
- NNPC says its agreement with two Chinese firms on Port Harcourt and Warri refineries is only a non-binding technical partnership framework.
- The company clarified that no fresh financial commitment or government funding is involved in the refinery rehabilitation discussions.
- The plan focuses on attracting private partners to manage, operate, and invest in the refineries under a commercial joint-venture model.
The Nigerian National Petroleum Company Limited, NNPC, has clarified that its recent Memorandum of Understanding (MoU) with two Chinese firms for the rehabilitation of the Port Harcourt and Warri refineries does not involve any new financial commitment or government spending.
The agreement, signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, is described as a technical equity partnership aimed at exploring possible collaboration for refinery completion and operations.
The deal, signed in Jiaxing City, China, on April 30, 2026, was executed by NNPC Group Chief Executive Officer Bashir Bayo Ojulari alongside representatives of the Chinese firms.
A senior NNPC official, speaking anonymously, said the agreement has been widely misunderstood and is not a contract award or funding approval for refinery rehabilitation.
According to the official, the MoU only establishes a non-binding framework for discussions around potential collaboration in areas such as financing structures, operations and maintenance, petrochemical development, and gas-based industrial projects.
“It is important to clarify that it is not a financial agreement. It is a preliminary understanding to explore opportunities for collaboration,” the official said.
The source stressed that no funds have been committed by NNPC for refinery rehabilitation under the arrangement, adding that the company has not entered into any fresh spending cycle.
No Government Funds To Be Used — NNPC
The official further explained that under the Petroleum Industry Act, NNPC Limited operates as a commercial entity and does not depend on government funding for such projects.
He added that the company’s current strategy is focused on attracting private investors and technical partners who can share risks and contribute capital and expertise to restore refinery operations.
“The company cannot rely on government funding. No public funds will be used for this arrangement,” the official said.
He noted that the long-term plan is to evaluate the possibility of an incorporated joint venture model that ensures efficiency, accountability, and commercial viability.
The clarification comes amid renewed public scrutiny over Nigeria’s refineries, including Port Harcourt, Warri, and Kaduna, which have undergone several costly rehabilitation projects over the years with limited sustained output.
NNPC leadership also reiterated that future refinery projects will be driven by commercially viable partnerships rather than direct spending from the company or government.
Officials said the focus has shifted to models where technical partners operate the facilities and only earn returns based on performance and efficiency.
