Chinese Firms to Fund Nigeria's Refinery Repairs

The Nigerian National Petroleum Corporation Limited (NNPC) has entered into a memorandum of understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng Fuzhou Industrial Park Operating Management Co. Ltd., to rehabilitate Nigeria's state-owned refineries.

NNPC's Chief Corporate Communications Officer, Andi Odeh, confirmed that the Chinese firms will bear the full cost of the repairs, estimated at $2.39 billion (₦3.2 trillion). This agreement follows six months of technical engagements between NNPC and the Chinese partners.

Ojulari stated that this MoU represents a significant milestone and recognizes the mutual benefits of developing a long-term sustainable profit model for NNPC's refining assets. The agreement includes a performance-based business partnership model aimed at ensuring the refineries become self-sustaining.

The MoU also explores potential investments in the petrochemical value chain, including a new methanol plant.