nnpc (1).webp
The Digest:

The Nigerian National Petroleum Company Limited (NNPCL) has signed a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng Industrial Park, for a potential Technical Equity Partnership to complete and operate the Port Harcourt and Warri refineries. This comes after $2.39 billion (over N3.2 trillion) was spent on rehabilitation under the previous administration. The Port Harcourt Refinery, which briefly started production in November 2024, was shut down in May 2025 amid controversy. Experts have expressed doubts, with one calling the MoU "another drain pipe."

Key Points:
  • Over N3.2 trillion has been spent on refineries with no sustained operation.
  • The Port Harcourt Refinery ran briefly before shutting down under a cloud of controversy.
  • Experts question the track record of the Chinese firms and the lack of transparency.
  • Former President Obasanjo has repeatedly said government refineries will never work.
  • Some analysts suggest selling the refineries instead of endless repair contracts.
Watch whether the Chinese firms succeed where previous contractors failed or if the refineries remain comatose.

Sources: Daily Trust