The Nigerian National Petroleum Company (NNPC) Ltd has signed a memorandum of understanding (MoU) with two Chinese firms to rehabilitate and revive the Warri and Port Harcourt refineries, as part of broader efforts to boost domestic refining capacity and reduce reliance on fuel imports.
The agreement signals renewed momentum in Nigeria’s long-standing plan to restore operations at its state-owned refineries, which have faced years of underperformance and shutdowns. The partnership with the Chinese companies is expected to bring technical expertise, financing support, and project execution capacity to accelerate the rehabilitation process.
NNPC said the move aligns with its strategy to strengthen the country’s energy security by increasing local production of refined petroleum products. Once fully operational, the Warri and Port Harcourt refineries are expected to contribute significantly to meeting domestic fuel demand.
The development comes as the oil company reported strong financial performance for March, with revenue rising to N2.77 trillion. The increase was attributed largely to improved gas output and stronger operational efficiency across its upstream and midstream segments.
NNPC also recorded a sharp rise in profit, which climbed to N276 billion in March, up from N136 billion in February. The company said the growth reflects higher production levels and better cost management, alongside favorable market conditions during the period.
In addition, statutory remittances to the federation reached N2.89 trillion in the first quarter of the year. The remittances include taxes, royalties, and other obligations, underscoring the company’s role as a major contributor to government revenue.
Industry analysts say the refinery rehabilitation project could have far-reaching economic benefits if successfully executed. Restoring local refining capacity is expected to reduce import bills, stabilize fuel supply, and potentially lower pressure on foreign exchange reserves.
However, past efforts to revive Nigeria’s refineries have faced delays, cost overruns, and operational setbacks. Observers note that the success of the new agreement will depend on transparency, effective project management, and adherence to timelines.
NNPC has indicated that it will work closely with its Chinese partners to ensure the projects are delivered efficiently. The company also emphasized the importance of leveraging global expertise to overcome technical challenges that have historically affected refinery operations.
The improved financial performance reported for March adds to growing optimism about NNPC’s transformation into a commercially driven entity. Since transitioning to a limited liability company, it has focused on increasing profitability and operational sustainability.
Rising gas output has been identified as a key driver of recent revenue growth. NNPC said investments in gas infrastructure and production have started to yield results, contributing to overall earnings and supporting Nigeria’s energy transition goals.
The company reiterated its commitment to expanding both oil and gas production while pursuing strategic partnerships to enhance capacity. It noted that collaboration with international firms remains essential to achieving long-term growth targets.
As Nigeria continues to navigate energy and economic challenges, the success of refinery rehabilitation efforts will be closely watched. The outcome could play a critical role in shaping the country’s energy independence and fiscal stability in the coming years.
