NNPC Discusses Refinery Overhaul With Chinese Company
By Naija Enquirer Staff
The Nigerian National Petroleum Company Limited (NNPCL) has opened talks with a Chinese company over plans to overhaul one of its state-owned refineries, as the national oil firm intensifies efforts to revive its struggling refining assets.
NNPCL Chief Executive Officer, Bayo Ojulari, said the company is seeking experienced refinery operators as equity partners to reposition its four refineries, which have suffered years of losses, inefficiency, and underperformance.
Ojulari disclosed that an internal review conducted shortly after he assumed office in April revealed that the refineries were running at huge losses, driven by high operating costs, heavy contractor spending, and low processing volumes.
According to him, the company’s board has approved a new strategy focused on bringing in credible refinery operators with proven expertise, rather than relying on contractors to handle rehabilitation efforts.
He said discussions were already in advanced stages with multiple interested investors.
“I’m just coming from a meeting with one of the potential investors,” Ojulari said, without disclosing the firm’s identity. “They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China.”
Nigeria has struggled for years to rehabilitate its aging refineries, which have operated far below capacity, forcing Africa’s largest crude oil producer to rely heavily on imported refined petroleum products.
The Federal Government has repeatedly invested billions of naira into turnaround maintenance and rehabilitation programmes, but output has remained inconsistent, with frequent shutdowns and operational setbacks.
Ojulari explained that the refineries have now been halted to allow time for a fresh evaluation of the best options for restoring them to profitability, a decision supported by the operational launch of the Dangote Refinery, which has provided what he described as “breathing space” for domestic fuel supply.
He clarified that NNPCL is not selling off the refineries, but is willing to relinquish a portion of equity to strategic partners in order to unlock funding and operational expertise needed to make the plants commercially viable.
“We are not selling the refineries,” Ojulari said. “But we will give up some equity so the refineries can be self-financed and properly managed.”
The talks signal a renewed shift in Nigeria’s refining reform strategy, as authorities increasingly look toward private-sector partnerships to end decades of dependence on imported fuel and strengthen local production capacity.
