NNPC signs refinery deal with Chinese firms as revenue hits ₦2.77tn

The Nigerian National Petroleum Company Limited has signed a new agreement with Chinese partners in a fresh attempt to revive the country’s struggling refineries, while also reporting improved financial performance.

The national oil company announced that it entered into a Memorandum of Understanding with two firms, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd., to explore a technical partnership for the rehabilitation and operation of refineries in Port Harcourt and Warri.

The agreement, signed in China by NNPC’s Group Chief Executive Officer, Bayo Ojulari and representatives of the Chinese companies, is expected to cover the completion of pending work, as well as the long-term operation and maintenance of the facilities.

NNPC said the partnership could also include expanding petrochemical capacity and developing gas-based industrial hubs around the refineries to improve efficiency and profitability.

The move comes after several failed attempts over the years to restore the refineries, including a previous effort that reportedly cost nearly $3 billion and is now under investigation.

Alongside the announcement, the company reported a rise in revenue for March 2026. Earnings increased to ₦2.77 trillion from ₦2.68 trillion recorded in February, showing a steady month-on-month improvement.

Profit after tax also saw a sharp increase, climbing to ₦276 billion in March from ₦136 billion in the previous month.

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Production figures showed modest gains, with crude oil and condensate output rising to about 1.56 million barrels per day, while gas production grew to 7,731 million standard cubic feet per day.

Despite these improvements, some operational challenges remain. Pipeline availability dropped during the period, highlighting ongoing issues with infrastructure reliability.

NNPC said the new agreement marks a key step toward restoring refining capacity and strengthening Nigeria’s energy sector, as it continues efforts to stabilise operations and improve output across its assets.

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