Nigeria’s domestic refining capacity could receive a fresh boost as the Nigeria National Petroleum Company (NNPC) Limited opens talks with a Chinese petrochemical firm over the revival of one of its state-owned refineries.
The disclosure was made by NNPC’s Group Chief Executive Officer, Bayo Ojulari, during a fireside chat at the Nigeria International Energy Summit 2026 held in Abuja on Wednesday, February 4, 2026.
According to Ojulari, the move is part of a broader strategy to bring in experienced refinery operators as equity partners to turn around NNPC’s four refineries after years of losses, weak utilisation, and operational underperformance.
What they are saying
Ojulari explained that an internal review conducted shortly after he assumed office in April 2025 revealed that NNPC’s refineries were running at huge losses, driven by high operating costs and heavy contractor spending despite low processing volumes.
He said the NNPC board has now approved a new strategy focused on attracting operators with proven refinery expertise as equity partners, rather than continuing with contractor-led arrangements.
- “So 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.”
- “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.”
- “We will probably look at options where you can sell down some of our equity, so that they have a skin in the game.”
- “I’m just coming from a meeting with one of the potential investors… It’s a Chinese company that has one of the biggest petrochemical plants in China.”
Ojulari stressed that while NNPC is not planning an outright sale of the refineries, it is willing to relinquish as much equity as required to secure a sustainable operating and financing model.
Get up to speed
NNPC commenced a detailed technical and commercial review of its three major refineries in Port Harcourt, Warri, and Kaduna in October 2025.
The company said the review was aimed at determining the operational and financial viability of the assets and repositioning them as modern, revenue-generating facilities.
- The review covers refinery configuration, operating costs, maintenance history, and commercial performance.
- It forms part of NNPC’s broader downstream reform agenda under its commercialised structure.
- The exercise is intended to align the refineries with international best practices in operations and governance.
Ojulari noted that the review marked the start of a new phase in NNPC’s refinery rehabilitation journey, with a focus on making the assets globally competitive and capable of meeting Nigeria’s domestic fuel demand.
Why it matters
Nigeria has struggled for decades to rehabilitate its ageing refineries, which have consistently operated far below installed capacity.
Despite spending about $4 billion on turnaround maintenance over the years, the facilities have remained largely non-functional, forcing Africa’s largest crude oil producer to rely heavily on imported fuel.
- Heavy dependence on fuel imports has exposed the economy to foreign exchange pressure and supply disruptions.
- Low domestic refining capacity has contributed to recurring fuel scarcity and price volatility.
- Reviving state-owned refineries is seen as key to strengthening energy security and supporting industrial growth.
Successful rehabilitation of the NNPC refineries could reduce import dependence, improve fuel availability, and enhance Nigeria’s economic sovereignty in the energy sector.
What you should know
Nigeria’s refining challenges have long been linked to operational inefficiencies, crude supply disruptions, and weak security around oil infrastructure.
As part of ongoing reforms, NNPC has kept all options on the table regarding the future of its non-performing downstream assets.
- Ojulari said in July 2025 that the sale of the refineries in Warri, Port Harcourt, and Kaduna remained a possibility as NNPC reviewed its downstream operations.
- The company has also overhauled crude infrastructure security, working with government agencies and local community surveillance groups.
- According to NNPC, the new security model has improved pipeline availability compared to the former reliance on policing alone.
These reforms are expected to support any future partnership model by ensuring more reliable crude supply and a more stable operating environment for Nigeria’s refineries
