ABUJA, Nigeria (FN), The Nigerian National Petroleum Company Limited (NNPC) has signed a landmark agreement with two Chinese firms to operate and rehabilitate the Warri and Port Harcourt refineries, a move aimed at ending decades of failed attempts to restore Nigeria’s refining capacity and reduce dependence on imported fuel.
The deal, signed in Jiaxing City, China, brings Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. into a technical equity partnership with NNPC. Under the arrangement, the firms will complete rehabilitation works, manage operations, and expand petrochemical output at the refineries. The Port Harcourt facility has a capacity of 210,000 barrels per day, while Warri can process 125,000 barrels daily.
Nigeria’s refineries have long been plagued by mismanagement and corruption, consuming billions of dollars in rehabilitation funds without achieving full functionality. A $1.5 billion Port Harcourt rehabilitation project approved in 2021 and a $897 million Warri program both failed to deliver results. The new partnership is designed to ensure commercial viability by involving foreign operators directly in management and operations.
The announcement comes as the privately owned Dangote Refinery begins production, raising competition in Nigeria’s downstream sector. Analysts say NNPC’s move is intended to keep state-owned refineries relevant in a market increasingly dominated by private players.
Reactions have been mixed. NNPC’s Group Chief Executive Officer Bashir Bayo Ojulari hailed the agreement as a “significant milestone” after months of negotiations, promising cleaner fuel standards and profitability. Civil society groups, however, have urged transparency, warning against repeating past failures. Industry experts remain cautious, noting that similar partnerships with foreign firms have struggled to deliver sustainable results across Africa.
If successfully implemented, the deal could transform Nigeria’s energy landscape, reduce reliance on imports, and expand petrochemical industries. But with the agreement still non-binding and subject to regulatory approvals, many Nigerians remain skeptical, recalling decades of broken promises tied to the country’s refineries.
