National Petroleum Corporation (NNPC) is in discussions with a Chinese company over one of its state-owned refineries, the corporation’s chief executive, Bayo Ojulari, said on Wednesday.
Ojulari explained that NNPC is seeking experienced operators as equity partners to revive its four refineries, which have suffered years of losses and underperformance.
“I’m just coming from a meeting with one of the potential investors,” Ojulari said, without disclosing the company’s name. “They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China.”
He added that an internal review conducted shortly after he assumed his role in April last year revealed that the refineries were running at substantial losses, with high operating costs and heavy spending on contractors, while processing volumes remained low.
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According to Ojulari, NNPC’s board has approved a strategy to bring in refinery operators with proven expertise rather than contractors, and the company is already in advanced talks with several interested parties.
Nigeria has long struggled to rehabilitate its aging refineries, which operate well below capacity, forcing the country—Africa’s largest crude oil producer—to rely heavily on imported fuel. The government hopes that new partnerships will help reverse this trend.
Ojulari noted that the plants have been halted temporarily to allow time to explore options for restoration, coinciding with the launch of the Dangote Refinery, which has provided a “breathing space” for domestic fuel supply.
He emphasized that NNPC is not selling the refineries, but intends to relinquish a portion of their equity to partners to enable the plants to self-finance their operations.
