NNPC-China Refinery Deal: Marketers Back Equity Partnership to Revive Port Harcourt, Warri Plants
Fuel marketers in Nigeria have expressed strong support for the Nigerian National Petroleum Company Limited’s (NNPC) new partnership with two Chinese firms aimed at reviving the long-dormant Port Harcourt and Warri refineries. They believe the deal could finally unlock years of idle investments and restore local refining capacity.
The agreement, signed through a Memorandum of Understanding (MoU), involves Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd. The arrangement adopts a technical equity partnership model focused on rehabilitating, restarting, and expanding the two refineries.
The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, described the initiative as a practical and forward-looking approach. He explained that bringing in competent technical partners with equity stakes would ensure efficiency, sustainability, and better returns on already committed investments in the facilities.
Isong added that the refineries had previously consumed significant public funds without delivering consistent output, describing the assets as “tied-down capital.” According to him, allowing experienced partners to co-own and operate the plants would motivate performance since their returns would depend on refinery success.
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) described the agreement as a major shift in Nigeria’s refining strategy. The group praised the Federal Government and NNPC leadership for adopting what it called a performance-driven model that could finally address decades of inefficiency in the sector.
PETROAN also noted that the deal could create thousands of jobs, reduce fuel imports, conserve foreign exchange, and improve Nigeria’s energy security. It further suggested that increased domestic refining could lead to more stable and potentially lower fuel prices, while boosting government revenue and industrial development across host communities.