Business
NNPCL Signs Bold Deal With Chinese Firms for Refinery Revival
NNPCL refinery China partnership MoU signed with two firms to support Port Harcourt and Warri refineries’ restart, expansion and long-term viability
The Nigerian National Petroleum Company Limited has signed a Memorandum of Understanding with two Chinese firms, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, in a strategic move aimed at reviving Nigeria’s ailing refineries.
Also read: NNPCL Begins Preparations for Commercial Drilling in Ogun
Partnership MoU was formalised on Thursday, April 30, 2026, in Jiaxing City, China, and announced in a statement issued on Monday by the company’s Chief Corporate Communications Officer, Andy Odeh.
The agreement was signed by NNPCL Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, alongside representatives of the Chinese companies, marking what the company described as a significant milestone after months of technical discussions.
Ojulari said the engagement represents a deliberate effort to identify credible partners capable of supporting the restart, expansion and long-term profitability of the Port Harcourt and Warri refineries.
He explained that all parties involved recognise the need for a mutually beneficial framework that would ensure sustainable operations and improved efficiency across Nigeria’s refining assets.
According to him, the MoU is part of a broader strategy to explore technical equity partnerships, including opportunities in petrochemical development and gas-based industrial projects linked to refinery operations.
The agreement is expected to open further commercial and technical discussions on how to restore full functionality to the facilities and improve their long-term viability.
However, the statement did not provide details on funding commitments or clarify whether the Chinese partners would provide direct financing, equity participation, or operational management support.
The latest development comes after years of costly rehabilitation efforts on Nigeria’s state-owned refineries, including multi-billion-dollar investments under previous administrations, which have yet to deliver consistent operational success.
Port Harcourt refinery briefly resumed production in late 2024 but reportedly shut down months later, while the Warri facility has remained central to ongoing government efforts to revive domestic refining capacity.
Also read: Ogun Residents Demand End to Border Fuel Ban
With this new partnership, NNPCL is seeking a more sustainable operational model that blends technical expertise with potential equity participation to ensure long-term stability.
Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.
The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.
The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.
The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.
The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.
The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.
The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.
The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.
The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.
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