The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Bashir Bayo Ojulari, has disclosed that Chinese engineering firms will bear the full cost of repairing Nigeria’s major state owned refineries under a new financing arrangement aimed at accelerating the rehabilitation of the country’s downstream oil sector.
Ojulari explained that the agreement is designed to reduce the financial burden on the Federal Government while ensuring that the rehabilitation of the refineries is completed without further delays. Under the arrangement, the Chinese companies will provide the required funding for the repair works and recover their investments through mutually agreed commercial terms after the facilities become operational.
The initiative covers key government owned refineries, including those located in Port Harcourt, Warri, and Kaduna. These facilities have operated below capacity for years due to ageing infrastructure, poor maintenance, and operational challenges, forcing Nigeria to depend heavily on imported petroleum products despite being one of Africa’s leading crude oil producers.
According to Ojulari, the new financing model reflects the government’s determination to restore refining capacity while adopting more sustainable funding mechanisms. He noted that relying solely on public funds to rehabilitate the refineries has proven difficult over the years because of competing national priorities and budgetary constraints.
He expressed confidence that the partnership with the Chinese firms would fast track the completion of the rehabilitation projects, improve operational efficiency, and increase domestic production of refined petroleum products. Once fully operational, the refineries are expected to strengthen Nigeria’s energy security, reduce dependence on imported fuel, and conserve foreign exchange.
The development comes at a time when Nigeria is pursuing broader reforms in the petroleum sector aimed at increasing local refining capacity. The emergence of large private refineries, particularly the Dangote Refinery, has already begun reshaping the country’s downstream industry by reducing fuel imports and expanding exports of refined products.
Energy experts believe the successful rehabilitation of government owned refineries, alongside growing private sector investment, could significantly improve fuel availability, stabilise prices, and create thousands of direct and indirect jobs across the oil and gas value chain.
Industry analysts also note that increased domestic refining would support Nigeria’s economic diversification agenda by retaining more value within the country, strengthening industrial production, and enhancing government revenue through improved efficiency in the petroleum sector.
If the rehabilitation programme is completed as planned, Nigeria could substantially reduce its dependence on imported refined petroleum products while positioning itself as a major refining hub for West and Central Africa. The partnership with the Chinese firms is therefore expected to play a critical role in achieving the country’s long term energy and economic development goals.
SOURCE: DAILY TRUST
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