Nigeria’s state oil company, Nigerian National Petroleum Company (NNPC) Limited, has signed a deal with Chinese firms to revive the country’s long-struggling refineries, despite over $2.4 billion previously spent on rehabilitation efforts with little success.
The agreement, structured as a memorandum of understanding (MoU), involves collaboration with Chinese industrial partners to overhaul and restore operations at key state-owned refineries that have remained largely dormant for years.
The move reflects a strategic shift by NNPC toward engaging technical and equity partners, rather than relying solely on contractor-led maintenance approaches that have failed to deliver sustainable results. This aligns with broader efforts to reposition Nigeria’s refining sector and reduce dependence on imported petroleum products.
Nigeria’s refineries with a combined installed capacity of about 445,000 barrels per day have operated far below capacity for decades, contributing to persistent fuel importation despite the country’s status as Africa’s largest crude oil producer.
Industry analysts note that previous turnaround maintenance programmes, which consumed billions of dollars, yielded limited improvements, raising concerns over efficiency, transparency, and long-term sustainability in the management of the facilities.
The new partnership with Chinese firms is expected to bring in technical expertise, operational efficiency, and potential financing, with a focus on restoring production capacity and ensuring the refineries become commercially viable. The development also comes at a time when Nigeria is seeking to strengthen domestic refining capacity, particularly with the emergence of large-scale private sector investments such as the Dangote Refinery, which has begun to reshape the country’s downstream oil landscape.
