Nigeria’s home refining capability might obtain a recent increase because the Nigeria Nationwide Petroleum Firm (NNPC) Restricted opens talks with a Chinese language petrochemical agency over the revival of one among its state-owned refineries.
The disclosure was made by NNPC’s Group Chief Govt Officer, Bayo Ojulari, throughout a hearth chat on the Nigeria Worldwide Vitality Summit 2026 held in Abuja on Wednesday, February 4, 2026.
In keeping with Ojulari, the transfer is a part of a broader technique to herald skilled refinery operators as fairness companions to show round NNPC’s 4 refineries after years of losses, weak utilisation, and operational underperformance.
What they’re saying
Ojulari defined that an inside overview carried out shortly after he assumed workplace in April 2025 revealed that NNPC’s refineries have been operating at enormous losses, pushed by excessive working prices and heavy contractor spending regardless of low processing volumes.
He stated the NNPC board has now authorised a brand new technique centered on attracting operators with confirmed refinery experience as fairness companions, fairly than persevering with with contractor-led preparations.
- “So the present NNPC technique, as authorised by our board, is to deal with getting companions which have a monitor report of operating refineries. We aren’t searching for contractors. We aren’t searching for Operations and Upkeep.”
- “We’re searching for an entity that runs refineries. We’re trying ahead to them shopping for a few of our shares. So while you say promote, we is not going to say we’re promoting the refineries.”
- “We’ll in all probability take a look at choices the place you possibly can promote down a few of our fairness, in order that they’ve a pores and skin within the sport.”
- “I’m simply coming from a gathering with one of many potential buyers… It’s a Chinese language firm that has one of many largest petrochemical vegetation in China.”
Ojulari confused that whereas NNPC is just not planning an outright sale of the refineries, it’s prepared to relinquish as a lot fairness as required to safe a sustainable working and financing mannequin.
Rise up to hurry
NNPC commenced an in depth technical and industrial overview of its three main refineries in Port Harcourt, Warri, and Kaduna in October 2025.
The corporate stated the overview was geared toward figuring out the operational and monetary viability of the belongings and repositioning them as trendy, revenue-generating amenities.
- The overview covers refinery configuration, working prices, upkeep historical past, and industrial efficiency.
- It varieties a part of NNPC’s broader downstream reform agenda underneath its commercialised construction.
- The train is meant to align the refineries with worldwide greatest practices in operations and governance.
Ojulari famous that the overview marked the beginning of a brand new part in NNPC’s refinery rehabilitation journey, with a deal with making the belongings globally aggressive and able to assembly Nigeria’s home gas demand.
Why it issues
Nigeria has struggled for many years to rehabilitate its ageing refineries, which have persistently operated far beneath put in capability.
Regardless of spending about $4 billion on turnaround upkeep over time, the amenities have remained largely non-functional, forcing Africa’s largest crude oil producer to rely closely on imported gas.
- Heavy dependence on gas imports has uncovered the economic system to international trade strain and provide disruptions.
- Low home refining capability has contributed to recurring gas shortage and value volatility.
- Reviving state-owned refineries is seen as key to strengthening vitality safety and supporting industrial progress.
Profitable rehabilitation of the NNPC refineries might scale back import dependence, enhance gas availability, and improve Nigeria’s financial sovereignty within the vitality sector.
What it is best to know
Nigeria’s refining challenges have lengthy been linked to operational inefficiencies, crude provide disruptions, and weak safety round oil infrastructure.
As a part of ongoing reforms, NNPC has stored all choices on the desk relating to the way forward for its non-performing downstream belongings.
- Ojulari stated in July 2025 that the sale of the refineries in Warri, Port Harcourt, and Kaduna remained a chance as NNPC reviewed its downstream operations.
- The corporate has additionally overhauled crude infrastructure safety, working with authorities businesses and area people surveillance teams.
- In keeping with NNPC, the brand new safety mannequin has improved pipeline availability in comparison with the previous reliance on policing alone.
These reforms are anticipated to assist any future partnership mannequin by guaranteeing extra dependable crude provide and a extra secure working atmosphere for Nigeria’s refineries
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