Nigeria’s state oil company, the Nigerian National Petroleum Company (NNPC), has signed a Memorandum of Understanding with two Chinese firms to restart and upgrade the Port Harcourt and Warri refineries, following years of failed rehabilitation efforts and billions of dollars in spending without lasting results.

The agreement, signed in China on April 30, 2026, aims to establish a technical partnership focused on completing outstanding repair works, improving operations, and ensuring long-term efficiency of the two state-owned facilities.

The Port Harcourt and Warri refineries have faced repeated shutdowns, maintenance failures, and cost overruns for more than a decade. Despite multiple investment rounds estimated at over $25 billion between 2010 and 2023, the facilities have remained largely underperforming or inactive.

The new deal marks another attempt by Nigerian authorities to restore domestic refining capacity and reduce dependence on imported petroleum products.

Under the agreement, the Chinese partners are expected to assist in completing unfinished engineering works and support the long-term operation and maintenance of the refineries. The framework also leaves room for a potential technical equity partnership in the future.

Nigeria remains one of Africa’s largest oil producers, yet relies heavily on fuel imports due to limited local refining capacity. Previous rehabilitation projects have struggled with delays, technical setbacks, and funding inefficiencies.

The new partnership is part of broader efforts to modernize the downstream oil sector and improve energy security, though analysts note that similar initiatives in the past have not delivered sustained results.

While the agreement signals renewed political will to fix Nigeria’s refining sector, its success will depend on execution, governance, and the ability to overcome structural inefficiencies that have plagued the industry for years.