Chinese investors may take control of Nigeria’s refineries in massive NNPC shake-up

Nigeria may soon hand majority control of two of its most strategic oil assets to Chinese investors as the Nigerian National Petroleum Company Limited pushes a new plan to revive the country’s troubled refineries after years of failed rehabilitation efforts.

• NNPC is considering an NLNG-style partnership that could hand Chinese investors a 51% stake in the Port Harcourt and Warri refineries.
• The proposed arrangement goes beyond rehabilitation contracts and may include long-term operational control and joint governance.
• The deal forms part of a broader strategy to revive Nigeria’s struggling refining sector and reduce dependence on imported fuel.
• Analysts say the move reflects growing concerns over the sustainability of previous refinery rehabilitation efforts.

The proposal, which insiders say is being modelled on the successful Nigeria Liquefied Natural Gas structure, could see Chinese firms acquire up to 51 per cent of the equity in the Port Harcourt and Warri refineries under a long-term technical and commercial partnership with NNPC.

The development marks one of the most significant shifts yet in Nigeria’s downstream petroleum sector and could deepen China’s influence in Africa’s largest oil-producing economy at a time when the country is struggling to end decades of refinery inefficiency, fuel imports, and mounting public frustration.

The proposed arrangement emerged after NNPC signed a Memorandum of Understanding with Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. during a meeting in Jiaxing City, China, on April 30, 2026.

The agreement was signed by NNPC Group Chief Executive Officer, Bayo Ojulari, alongside the chairman of Sanjiang Chemical Company, Guan Jianzhong, and the chairman of Xinganchen Industrial Park Operation and Management Co., Ltd, Bill Bi.

Although officially described as a “potential technical equity partnership,” findings indicate the discussions go far beyond a traditional refinery rehabilitation contract.

NNPC adopts NLNG-style model

According to The Punch, sources familiar with the negotiations said the framework under consideration resembles the ownership structure of Nigeria LNG Limited, in which investors hold a majority stake, participate in governance, and remain actively involved in operations over the long term.

Under the proposed structure, the Chinese firms would not only help complete outstanding engineering and rehabilitation work at the Port Harcourt and Warri refineries, but could also become strategic co-owners with operational responsibilities tied directly to profitability and performance.

For years, Nigeria has spent billions of naira attempting to restore its state-owned refineries with little success. Despite repeated rehabilitation announcements, the facilities have continued to operate below expectations, forcing Africa’s top crude producer to depend heavily on imported refined petroleum products.

Industry analysts say the latest move suggests growing concerns within NNPC that previous refinery repair arrangements may not be sustainable without technically competent investors with financial stakes in the assets.

According to officials familiar with the agreement, the partnership would cover refinery operations and maintenance services to improve efficiency, reliability, and safety standards, while expanding refining capacity and producing cleaner fuels.

The discussions also include plans for petrochemical integration and gas-based industrial projects around the refinery complexes, potentially transforming the facilities into broader industrial hubs rather than standalone refineries.

“The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards, alongside exploration of gas-based industrial projects in Nigeria,” an NNPC official familiar with the discussions said.

Speaking after the signing ceremony, Ojulari described the agreement as a major milestone following months of negotiations between both parties.

“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria and the collective weight required for success,” he said.

He added that the partnership represents an important step toward identifying technical equity partners capable of restarting and expanding the country’s struggling refineries.

However, officials stressed that the agreement remains non-binding and subject to extensive technical, financial, operational, legal, and regulatory due diligence before any final commercial arrangement can be executed.

The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said the model could help solve longstanding operational inefficiencies that have plagued Nigeria’s refining sector for decades.

According to him, the critical difference in the new arrangement is that the Chinese partners would become equity holders rather than ordinary contractors, giving them stronger incentives to ensure the facilities work efficiently and profitably.

“This is an innovative way of getting the assets to work in an efficient and sustainable way. The third party they have brought is taking equity. He’s a part-owner of the refinery and so would want the refinery to work so he can get returns on his investment,” Isong said.

The Port Harcourt refinery rehabilitation project was previously awarded to Italian engineering company Maire Tecnimont, while separate rehabilitation work had also commenced at the Warri refinery.

If the talks progress into binding agreements, the deal could significantly reshape Nigeria’s downstream oil industry while expanding Chinese participation in the country’s refining, petrochemical, and gas sectors.