NNPC in Talks with Chinese Firm Over Possible Investment in Nigeria’s Refinery
- NNPC is discussing a potential refinery partnership with a Chinese petrochemical company
- The specific refinery involved has not been disclosed due to commercial sensitivity
- NNPC says it plans to sell down equity, not fully sell off any of its refineries
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigerian National Petroleum Company Limited (NNPCL) has confirmed it is in talks with a Chinese firm over a possible partnership involving one of the country’s refineries, The Cable reported.
Source: UGC
The company’s group chief executive officer, Bayo Ojulari, disclosed this on Wednesday at the ongoing Nigerian International Energy Summit (NIES) in Abuja.
Ojulari said the discussions are part of NNPC’s broader strategy to revive its refining assets through partnerships with experienced operators. He, however, declined to name the refinery involved, citing commercial sensitivity.
NNPC holds crucial meeting with Chinese investors
According to the NNPC boss, the national oil company recently held meetings with the prospective investor, which he described as one of China’s largest petrochemical companies. He added that the firm was scheduled to inspect the refinery as part of its assessment process.
While details of the negotiations remain undisclosed, Ojulari noted that NNPC is also engaging other interested companies with proven expertise in refinery operations.
Not an outright sale, Ojulari clarifies
He explained that the company is not planning an outright sale of its refineries but is open to selling down part of its equity to strategic partners. This, he said, would ensure investors have a stake in the business and a long-term commitment to its success.
Ojulari said NNPC’s board-approved strategy prioritises partnerships with firms that have a strong track record in running profitable refineries.
Under the proposed model, the partners would lead refinery operations, while NNPC focuses on rebuilding its internal capacity, skills, and support systems.
He added that the goal is to establish refineries that are financially sustainable and run on a commercial basis, rather than relying on government funding.
Ojulari acknowledged that NNPC currently lacks the operational structure required to run profitable refineries, despite strong global refining margins. He said bringing in experienced operators is necessary to complement the company’s existing capabilities.
The NNPC chief also stressed that the company is not seeking contractors or routine operations and maintenance arrangements, but full-fledged refinery operators willing to take equity and operational responsibility.
Source: Getty Images
He said NNPC is prepared to give up as much equity as required to secure a sustainable partnership that can keep the refineries running efficiently over the long term.
Nigeria’s refining challenges have persisted in recent years. The Port Harcourt Refining Company was shut down for maintenance in May 2025, while operations at the Warri and Kaduna refineries were also suspended for rehabilitation.
In November 2025, NNPC announced plans to partner with private refinery operators following a review of the state-owned plants, as part of efforts to address longstanding operational issues.
Why NNPC operated refineries despite losses – Ojulari
Legit.ng earlier reported that intense political pressure was mounted to keep Nigeria’s state-owned refineries operating, despite internal findings that the facilities were recording heavy financial losses.
According to Ojulari, the pressure persisted even as management reviews showed that refinery operations were eroding national value and running at what he described as monumental losses.
The NNPC chief said public frustration over the refineries was understandable, considering the huge investments committed to their rehabilitation over the years.
Source: Legit.ng
