…remits N2.89trn to Federation Account

After series of failed attempts to ensure optimum utilization of Federal Government’s refineries, the Nigerian National Petroleum Company Limited (NNPCL has again signed another round of Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for another round of technical commitment.

The national oil firm described the pact as being for collaboration through a potential Technical Equity Partnership (TEP) in support of the completion and operation of the Port Harcourt and Warri refineries.

The MoU was signed by the Group Chief EO, NNPC Ltd, Engr. Bashir Bayo Ojulari; Chairman, Sanjiang Chemical Company, Guan Jianzhong and Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, Bill Bi, in Jiaxing City, China, on Thursday, April 30, 2026.

According to the Chief Corporate Communications Officer, NNPC Ltd, Andy Odeh, in a statement, the potential framework will cover completion of outstanding work at the two refineries, together with operating and maintaining both facilities to achieve best-in-class, sustainable performance.

The MoU is coming after failed attempts in the past to revive the refineries that have gulped billions of dollars in turn around maintenance and full scale overhaul.

The Port Harcourt Refining Company (PHRC), located in Alesa-Eleme, Nigeria, consists of two refineries with a combined capacity of 210,000 barrels per day (bpd).

Following extensive rehabilitation aimed at fixing broken compressors and control rooms, the refinery had earlier reported 90 per cent completion on rehabilitation as of February 2026, intended to boost production and reduce reliance on imports. March 2021, the Federal Government approved $1.5 billion for rehabilitation.

As of February 2026, the old refinery was said to be ~90 per cent rehabilitated, while the new one was ~70- 80 per cent completed before operations were stopped, aimed at restoring full capacity. Despite rehabilitation efforts, the plant has faced significant challenges.

It was shut down again in May 2025 due to financial losses and inefficiency, The government had said that the focus for the refinery was on bringing it to a high grade operational standard, rather than privatization.