Nigeria’s state oil firm, the Nigerian National Petroleum Company (NNPC), has disclosed plans to work with a Chinese company to rehabilitate the country’s long-dormant oil refineries, as authorities search for sustainable solutions to years of failed turnaround efforts.
The plan was revealed by NNPC’s chief executive, Bayo Ojulari, who said the company is prioritising partnerships with experienced refinery operators rather than conventional contractors.
According to him, talks are already underway with a Chinese firm that operates one of China’s largest petrochemical facilities, with site inspections scheduled to assess the condition of the refineries.
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Ojulari explained that refinery operations have been temporarily paused to allow for a full evaluation of viable restoration options.
He added that NNPC is considering equity-sharing arrangements instead of outright asset sales, allowing the refineries to generate their own funding while remaining under state ownership.
The renewed push comes as the launch of the Dangote Refinery has eased domestic fuel supply pressures, creating room for NNPC to rethink its refinery strategy.
However, government officials have signalled that selling the refineries remains a possible option.
In November, the President’s Special Adviser on Energy, Olu Verheijen, confirmed that divestment is among the choices being examined.
Nigeria has struggled for decades to revive its refineries in Port Harcourt, Warri, and Kaduna, which together have a combined capacity of 445,000 barrels per day but have largely remained idle despite repeated investments.
Efforts to rehabilitate the facilities intensified following the commissioning of Dangote’s 650,000-barrel-per-day refinery but failed to deliver meaningful results, prompting a shift toward public-private partnerships.
The refinery crisis has also been overshadowed by allegations of financial misconduct. In 2025, Nigeria’s anti-corruption agency launched an investigation into a $2.9 billion refinery rehabilitation fund, uncovering questionable financial flows linked to senior refinery officials and triggering closer scrutiny of past NNPC management.
As Nigeria explores Chinese collaboration alongside other partnership models, the future of its state-owned refineries remains uncertain.
While the Dangote Refinery has reduced immediate fuel shortages, authorities continue to weigh options ranging from equity partnerships to full divestment in a bid to finally resolve the country’s long-running refining challenges.
