The Petroleum Products Retail Outlets Owners Association of Nigeria has commended President Bola Tinubu and the Nigerian National Petroleum Company Limited over the NNPCL China Deal with two Chinese firms aimed at rehabilitating and expanding the Port Harcourt and Warri refineries, describing the move as a significant step toward restoring domestic refining capacity.
NNPC Ltd signed the Memorandum of Understanding under the NNPCL China Deal with Sanjiang Chemical Company Limited and Xingcheng Fuzhou Industrial Park Operation and Management Co. Ltd on 30 April 2026 in Jiaxing City, China, with NNPC Group Chief Executive Officer Bashir Bayo Ojulari signing alongside Sanjiang Chairman Guan Jianzhong and Xingcheng Chairman Bill Bi. Ojulari described the signing as a significant milestone reached after more than six months of technical and commercial engagements between NNPC and the two Chinese partners.
PETROAN National President Dr Billy Gillis Harry said the NNPCL China Deal represented a departure from rehabilitation approaches that had repeatedly failed to deliver results. He said the introduction of a technical equity partnership model would bring much needed operational discipline, efficiency and accountability that had been lacking in previous refinery rehabilitation efforts.
The commendation comes against a backdrop of persistent setbacks in Nigeria's state refinery programme. The Warri refinery shut down in January 2025 barely a month after it was declared operational following an 897.6 million dollar rehabilitation after a safety fault was identified in the Crude Distillation Unit main heater. Nigeria's four state owned refineries include two facilities in Port Harcourt with a combined installed capacity of 210,000 barrels per day, the Warri refinery at 125,000 barrels per day and the Kaduna refinery at 110,000 barrels per day.
The proposed framework under the NNPCL China Deal covers the completion of outstanding rehabilitation work at both refineries, their ongoing operation and maintenance and possible expansion into cleaner fuels and higher value petroleum products including petrochemical development and gas based industrial hubs.
In a statement signed by the association's National PRO Dr Joseph Obele, PETROAN said the successful execution of the NNPCL China Deal would reduce Nigeria's dependence on imported petroleum products, conserve foreign exchange, generate employment across engineering, logistics and support services and improve the socio economic conditions of host communities in Rivers and Delta States.
The association also directed Sanjiang and Xingcheng to comply strictly with the Petroleum Industry Act, prioritise local content and maintain transparent engagement with all stakeholders. It called on the Chinese partners to foster a sense of belonging among host communities through fair employment practices and sustained community development initiatives, describing adherence to these standards as critical to long term operational success.
NNPC stated that any definitive arrangements under the NNPCL China Deal remain subject to customary approvals, with both parties committed to progressing discussions in good faith. PETROAN said it was confident the deal would deliver improved product availability, price stability and operational efficiency across the downstream sector.