Petroleum marketers have called on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to conclude negotiations with two Chinese firms interested in managing the Port Harcourt and Warri refineries, saying the partnership could accelerate refinery revival efforts and help lower fuel prices across the country.
The appeal comes as global crude oil prices continue to retreat, with Brent crude trading around $77 per barrel following improving diplomatic relations between the United States and Iran and growing expectations that oil shipments through the Strait of Hormuz will return to normal levels.
Speaking on the development, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, urged NNPCL Group Chief Executive Officer, Bayo Ojulari, to fast-track discussions on the proposed Technical Equity Partnership involving China's Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Company Limited.
The proposed arrangement follows the Memorandum of Understanding signed between NNPCL and the two Chinese firms to support the completion, rehabilitation and commercial operation of the Port Harcourt and Warri refineries. Industry stakeholders believe the partnership could bring fresh technical expertise, operational efficiency and private-sector discipline needed to restore the facilities to sustainable production levels.
According to Gillis-Harry, reviving the refineries under experienced and performance-driven management would significantly strengthen Nigeria's domestic refining capacity, reduce dependence on imported petroleum products and improve product availability nationwide. He noted that increased local refining would create a more competitive market environment capable of delivering better value to consumers.
He further argued that the current decline in international crude oil prices presents a favourable opportunity for Nigeria to maximise the benefits of domestic refining. Combined with stable exchange rates and efficient refinery operations, lower crude prices could translate into more affordable petrol and diesel prices for consumers and businesses.
The marketers' call reflects growing industry expectations that the Port Harcourt and Warri refineries should play a meaningful role in Nigeria's evolving downstream petroleum market. With the Dangote Refinery and other domestic refining projects already reshaping supply dynamics, analysts say additional refining capacity from state-owned facilities could further deepen competition and enhance energy security.
Gillis-Harry reaffirmed marketers' commitment to a transparent and competitive downstream sector, stressing that the successful rehabilitation and commercial operation of the nation's refineries would not only support price stability but also strengthen fuel supply reliability, stimulate economic activity and reduce Nigeria's exposure to external market shocks.