Nearly one year after announcing a planned shutdown for maintenance of the Port Harcourt Refining Company, the Nigerian National Petroleum Company Limited has signed a fresh agreement with two Chinese firms to accelerate the long-delayed rehabilitation and commercial restart of Nigeria’s refineries in Port Harcourt and Warri, while opening a new window for technical equity partnerships.

The Port Harcourt refinery was shut down on May 24, 2025, for planned maintenance and a sustainability assessment, according to NNPC, barely six months after a previous period of operational resumption following a $1.5bn rehabilitation project.

The new deal, structured as a Memorandum of Understanding, was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd., marking what the national oil company described as a “critical milestone” in its refinery transformation drive.

The agreement was executed in Jiaxing City, China, on April 30, 2026, by the Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, alongside the Chairman of Sanjiang Chemical Company, Guan Jianzhong, and the Chairman of Xingcheng Industrial Park, Bill Bi.

According to a statement issued on Monday by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, the MoU sets the stage for a potential Technical Equity Partnership aimed at completing outstanding work at the Port Harcourt and Warri refineries, as well as ensuring their long-term operational efficiency. Both facilities have a combined capacity of 335,000 barrels per day.

The statement read, “The NNPC Ltd has signed a Memorandum of Understanding with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for collaboration through a potential Technical Equity Partnership in support of the completion and operation of the Port Harcourt and Warri refineries.”

The national oil firm said the collaboration would go beyond rehabilitation, extending into full-scale operation and maintenance of the facilities to achieve “best-in-class, sustainable performance.”

It added that the arrangement would also explore expansion projects that would reposition the refineries to produce cleaner fuels and higher-value petroleum products, in line with evolving global standards.

“The potential framework would cover completion of outstanding work at the two refineries, together with operating and maintaining both facilities to achieve best-in-class, sustainable performance. Planned expansion and upgrades would elevate both facilities to cleaner, more profitable product standards.

“The potential collaboration also contemplates expanding the refineries’ petrochemical capacities and harnessing gas and downstream opportunities through the development of co-located, gas-based industrial hubs,” the statement added.

Ojulari, speaking shortly after the signing ceremony, described the agreement as the outcome of more than six months of intensive technical and commercial engagements between NNPC and the Chinese firms.

He said, “All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success.”

The NNPC boss stressed that the MoU represents a transition from traditional contractor-led rehabilitation to a more performance-driven partnership model anchored on shared risks and returns.

He added, “This is an important step on the journey towards identifying potential technical equity partner or partners to restart and expand NNPC’s refineries, and to explore opportunities in co-located petrochemicals and gas-based industries.”

The shift to a technical equity model signals a strategic departure from past refinery turnaround maintenance programmes, many of which failed to deliver lasting results despite significant financial outlays.

Under the proposed framework, the Chinese partners are expected to bring not just engineering expertise, but also operational discipline and investment capacity, aligning their returns with the performance of the refineries. The scope of the collaboration, as outlined by NNPC, includes the development of co-located gas-based industrial hubs, which could transform the Port Harcourt and Warri complexes into integrated energy and petrochemical centres.

Such hubs are expected to unlock additional value from Nigeria’s vast gas reserves, while supporting domestic manufacturing and export-oriented industries.

The company noted that while the MoU reflects a shared intention to advance discussions in good faith, any binding agreements would be subject to regulatory approvals and the conclusion of detailed commercial negotiations.

However, the new deal raises concerns about the fate of previous agreements signed by the company to accelerate the optimisation of the facility.

The rehabilitation of the Port Harcourt Refining Company was approved in 2021 at an estimated cost of $1.5bn, with contracts awarded to Italy’s Saipem and other partners to restore its capacity of 210,000 barrels per day.

Similarly, the Warri Refining and Petrochemical Company is undergoing rehabilitation under a contract valued at about $897m, aimed at reviving its 125,000 barrels per day capacity and integrating petrochemical production. Both projects form part of NNPC’s broader strategy to reduce Nigeria’s reliance on imported petroleum products.

The Port Harcourt refinery had briefly resumed operations in late 2024 after years of inactivity but was later shut down due to operational and financial challenges.

The latest deal aligns with Ojulari’s earlier position at the Nigeria International Energy Summit 2026, where he openly canvassed for global technical partners to take equity positions in Nigeria’s refining assets.

At the summit, Ojulari had argued that Nigeria’s refining challenges were not just financial, but deeply technical and operational, requiring experienced partners with proven track records.

He said, “What we are doing differently is moving away from just funding projects to bringing in partners who have skin in the game, partners who will operate, optimise, and guarantee performance.”

He further explained that the technical equity model would ensure accountability and efficiency, as partners would only profit when the refineries perform optimally.

He stated, “The days of spending billions on rehabilitation without sustainable output are behind us. We are now focused on partnerships that deliver value, technology transfer, and operational excellence.”

Ojulari also highlighted the importance of integrating refining with petrochemicals and gas-based industries, noting that modern refineries globally are designed as energy hubs rather than standalone fuel-processing plants.

“Refineries must evolve into integrated industrial platforms. That is where the future lies: petrochemicals, fertilizers, and gas monetisation. That is how you create real economic value,” he said.

Nigeria’s state-owned refineries, located in Port Harcourt, Warri, and Kaduna, have suffered decades of underperformance, frequent shutdowns, and failed rehabilitation efforts, forcing the country to rely heavily on imported petroleum products.

Despite multiple turnaround maintenance projects, the facilities have consistently operated far below capacity, raising concerns over efficiency, transparency, and value for money.

The current administration has prioritised refinery revival as part of its broader energy security strategy, while also supporting private sector investments such as the Dangote Refinery.

NNPC’s renewed push for technical equity partners comes amid growing pressure to reduce fuel import dependence, stabilise domestic supply, and conserve foreign exchange.

With this latest China deal, the national oil company appears to be betting on a new partnership model, one that ties investment returns directly to performance, in a bid to finally unlock the long-elusive potential of Nigeria’s refining sector.

Further findings by our correspondent revealed that Sanjiang Chemical is a Chinese private chemical manufacturing company established in 2003 and headquartered in the Zhapu Economic Development Zone, Jiaxing Port Area, Zhejiang Province. It is a listed firm on the Hong Kong Stock Exchange and is recognised as one of China’s leading integrated petrochemical producers.

The company specialises in ethylene oxide and ethylene glycol production and operates one of the world’s largest single-unit chemical processing facilities. Its product portfolio includes petrochemicals such as ethylene, propylene, polypropylene, butadiene, hydrogen, methanol derivatives, surfactants, and industrial gases.

Sanjiang runs a large integrated refining and petrochemical complex anchored on a 1,000 KTA EO/EG unit and a 1,250 KTA light hydrocarbon utilisation unit, supported by multiple downstream plants, including polypropylene and surfactant facilities.

It plays a key role in China’s industrial strategy, focusing on high-end petrochemical integration, supply chain security, and export-oriented chemical production, while leveraging advanced logistics connectivity within the Yangtze River Delta industrial corridor.

Xingcheng is an industrial park development and management company based in Guangdong Province, China, operating within the Xincheng Industrial Park in Xinxing County, Yunfu City.

The company focuses on industrial infrastructure development, park operations, and investment facilitation, supporting manufacturing clusters across metal processing, electronics, machinery, hardware, and biomedicine.

The industrial park it manages was established as a provincial-level industrial transfer zone in 2006 and upgraded in 2022 into a high-tech industrial development zone, designed to attract both domestic and foreign investors.

Xingcheng provides a full industrial ecosystem support, including land development, utilities (gas, power, and wastewater systems), tax incentives, and investment services.

It has also developed innovation platforms and supports high-tech enterprise growth, positioning the park as a hub for manufacturing relocation from China’s coastal economic zones into emerging inland industrial corridors.

The firm’s core strength lies in industrial park operations, infrastructure-led investment attraction, and enabling large-scale manufacturing ecosystems within China’s broader regional development strategy.

Higher fuel costs triggered by global tensions have pushed Nigerian firms to raise selling prices to a 16-month high, even as overall business activity continued to expand in April, according to the latest Purchasing Managers’ Index report.

The report by Stanbic IBTC Bank and S&P Global said, “The pass-through of increased input costs to customers resulted in a further sharp rise in output prices, with the rate of inflation quickening to the fastest since December 2024,” highlighting how elevated fuel costs directly fed into higher prices charged by businesses.

The PMI report, released on Monday and endorsed by the National Bureau of Statistics, showed that Nigeria’s private sector sustained growth momentum at the start of the second quarter, although inflationary pressures constrained the pace of expansion.

According to the report, the headline PMI rose to 52.4 in April from 51.9 in March, marking the third consecutive month above the 50.0 threshold that signals improvement in business conditions.

It noted that “the Nigerian private sector remained in growth territory… as customer numbers and market demand continued to strengthen,” but added that “the impacts of higher fuel costs as a result of the war in the Middle East were felt again, pushing up prices and reportedly limiting expansions in new orders and business activity.”

The report showed that new orders increased solidly in April, supported by stronger demand, although the growth rate softened due to rising inflation. Business activity also expanded at a slightly faster pace than in March, but firms said higher prices constrained output growth.

Sectoral performance was mixed, with activity rising in three of the four sectors monitored, while the services sector recorded a decline.

Cost pressures remained a major concern for businesses during the month. The report indicated that purchase prices increased rapidly, with the rate of inflation remaining close to March’s 15-month high.

It stated that “anecdotal evidence suggested that prices were often driven higher by increased fuel costs due to the war in the Middle East,” reinforcing the link between global energy shocks and domestic price dynamics.

In response to rising living costs, some firms increased staff wages to cushion the impact of higher transportation fares, leading to a modest rise in staff costs.

Despite these pressures, companies continued to expand their workforce, albeit marginally, as they responded to higher workloads. However, job creation slowed to its weakest level in three months.

Backlogs of work increased for the third consecutive month, driven by staff shortages, delayed customer payments, and challenges in sourcing raw materials.

Firms also intensified efforts to secure inputs, with purchasing activity rising for the seventeenth straight month. Inventories of raw materials increased at the fastest pace in five months, reflecting stronger demand and precautionary stock-building.

To ensure timely delivery of materials, companies prioritised prompt payments to suppliers, which contributed to a further shortening of supplier lead times, although the improvement was the weakest recorded so far this year.

Business confidence improved during the month, with about half of the surveyed firms expecting output to increase over the next 12 months. Companies cited plans to expand operations through new branches, stock accumulation, and entry into new markets.

Commenting on the report, Head of Equity Research West Africa at Stanbic IBTC Bank, Muyiwa Oni, said the sustained improvement in business conditions supported expectations of stronger economic growth in 2026.

He said, “The health of Nigeria’s private sector improved in April… as new orders increased in line with higher customer numbers and rising demand even as price pressures remain prevalent.”

Oni added that companies raised selling prices in April “to the highest level since December 2024 in response to rising fuel and raw material costs,” while staff costs also edged higher as firms adjusted wages.

He projected that the Nigerian economy would grow by 4.22 per cent year-on-year in 2026, up from 3.87 per cent in 2025, driven largely by expansion in the non-oil sector.

According to him, the non-oil sector is expected to grow by 4.24 per cent, with services projected at 5.64 per cent, supported by increased investment across key sectors such as oil and gas, solid minerals, electricity, agriculture, and manufacturing.

However, he noted that oil sector growth could slow to 3.01 per cent in 2026 from 8.50 per cent in 2025, with crude oil production projected to average 1.70 million barrels per day.

The report is based on survey responses from about 400 private-sector companies collected between April 9 and April 28, covering sectors including agriculture, manufacturing, construction, wholesale, retail, and services.

It explained that the PMI is a diffusion index, where readings above 50 indicate an overall improvement in business conditions compared to the previous month, while readings below 50 signal deterioration.

The findings point to a fragile growth environment, where rising demand is supporting business activity, but persistent cost pressures, particularly from fuel prices, continue to weigh on expansion and pricing dynamics.

Stakeholders in Nigeria’s financial services and technology sectors have highlighted the growing role of artificial intelligence and digital infrastructure in reshaping the continent’s financial ecosystem.

This was discussed at the BusinessDay Fintech Summit 2026, where participants examined how innovation, data, and emerging technologies are influencing financial services and inclusion across Africa.

Speaking during a panel session titled “Intelligent Finance: How AI, Data and Automation are Rewriting Financial Services,” the Chief Technology Officer of FCMB, Blessing Ehize, said artificial intelligence is already transforming banking operations, according to a statement from the bank on Monday.

“Artificial Intelligence is no longer a future concept; it is actively redefining how financial institutions operate. From improving risk assessment and fraud detection to enabling hyper-personalised customer experience, AI allows us to anticipate customer needs and respond in real time. The real value lies in how effectively we harness data to deliver smarter, faster, and more inclusive financial services,” he said.

Ehize said the bank’s approach to deploying AI is guided by the need to balance efficiency with trust and regulatory compliance.

“At FCMB, our approach to AI adoption is deliberate and responsible. We are integrating AI in ways that enhance efficiency without compromising trust, customer privacy, or regulatory compliance. This is why FCMB is ISO42001 certified. Technology must work for the customer, not against them, and must always align with ethical standards and human oversight,” he said.

He added that FCMB’s strategy aligns with broader global trends in financial services, where institutions are combining technological innovation with resilience.

“The intersection between what we do at FCMB and global financial best practices lies in our ability to balance innovation with resilience. Globally, AI is taking centre stage, whether you are a bank or not. It is coming to enable businesses and change lifestyles.

“We are building systems that are not only intelligent but also secure, scalable, and inclusive, ensuring that as we advance technologically, we bring more people into the financial ecosystem,” he said.