Between 2020 and 2025, Nigeria poured an astonishing ₦11.349 trillion, alongside $592.9 million, €4.88 million, and £3.46 million, into the rehabilitation and turnaround maintenance of its refineries, according to relevant sources. Yet, despite this colossal outlay, the nation’s refineries remain silent, their machinery idle, their promise unfulfilled. For years, taxpayers have watched as funds meant to breathe life into these industrial giants vanished into a cycle of failed revamps, leaving the country dependent on imported fuel and exposing the paradox of a petroleum-rich nation unable to refine its own crude.
Even in their states of moribund, billions of naira is spent on staff salary and wages. The Kaduna, Port Harcourt, and Warri refinery companies, all under the Nigerian National Petroleum Company (NNPC), while been closed since 2020 continue to pay massive sums to their employees.
In 2020 alone, NNPC’s audited financial statements reveal that these three refineries spent N60.547 billion on salaries and wages. This wasteful and unproductive trend continued into 2021, with an additional N66.779 billion allocated to employee compensation, even though the facilities produced no refined crude oil during this period. The Port Harcourt Refinery Company, which has long been at the center of government promises for revitalization, expended N22.547 billion in 2020 and N32.023 billion in 2021 on salaries and benefits.
Similarly, the Warri Refinery Company, despite its inactivity, spent N12 billion in 2020 and N14 billion in 2021 on staff expenses. The Kaduna Refinery Company, which also remains non-functional, reported personnel costs of N26 billion in 2020 and N20 billion in 2021.
The situation is compounded by the fact that the Kaduna Refinery Company turned itself to lender of last resort, provided loans to its employees totaling N2.2 billion between 2020 and 2021, raising further questions about the financial management of these entities.
This circle of waste, corruption and inefficiency continued unabated for decades.
Now, however, a new chapter beckons. Under the administrative ingenuity of Engr Bashir Bayo Ojulari, the Nigerian National Petroleum Company (NNPC) 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.
This agreement which 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 is clear evidence of the transformative initiative of NNPC Limited in repositioning itself as Africa’s leading energy generator.
Unlike in the past when turnaround maintenance contracts were influenced by politicians for local and inexperienced contractors; the Sanjiang Chemical is a reputable 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 with verifiable asset and liability.
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.
The second company also has a reputation of global standard petrochemical identity. 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.
Xingcheng provides a full industrial ecosystem support, including land development, utilities (gas, power, and wastewater systems), tax incentives, and investment services.
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. The reputations of these companies underscore Ojulari’s vision and transparency which are the hallmark of NNPC limited today.
One of the most interesting aspects of the MoU according to a statement issued few months ago by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, is that it 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 vision with which this MoU was signed is commendable for a collaboration that would go beyond rehabilitation of the refineries, extending into full-scale operation and maintenance of the facilities to achieve “best-in-class, sustainable performance represent a great departure from the wasteful past.
This agreement is more than a technical contract; it is a statement of intent. For the first time in years, Nigerians can look beyond endless promises and see a pathway to genuine progress. The significance of this MoU lies in its potential to restore confidence in the nation’s energy sector. Functioning refineries mean reduced reliance on imported fuel, which in turn stabilises pump prices and shields citizens from the volatility of global markets and monopoly. For the ordinary Nigerian, this translates into cheaper transportation, lower costs of goods, and relief from the inflationary pressures that have long eroded household incomes.
Beyond fuel prices, the revival of these refineries carries immense promise for job creation. Thousands of skilled and semi skilled workers will be needed to operate, maintain, and support the facilities. Ancillary industries from logistics to petrochemicals will flourish, creating a ripple effect across the economy. This is how industrial revival becomes social transformation: by putting food on tables, restoring dignity through employment, and giving young Nigerians a reason to believe in their country’s future.
The MoU also signals Nigeria’s readiness to attract foreign direct investment. Investors are drawn to stability, efficiency, and vision. Ojulari’s courage to depart from the corruption ridden, wasteful approaches of the past has set a new tone. By insisting on transparency and efficiency, he has positioned NNPC as a credible partner in the global energy space. This credibility is the bedrock upon which broader economic improvement can be built — from increased revenue to stronger currency reserves.
Most importantly, the socio economic lives of ordinary Nigerians stand to benefit. Affordable fuel means more accessible healthcare and education, as families spend less on transport and energy. It means small businesses can thrive without being strangled by high operating costs. It means farmers can move produce to markets at reasonable rates, reducing waste and boosting food security.
Engr Bashir Bayo Ojulari deserves commendation not just for his technical acumen but for his vision and courage. He has broken with a past defined by sabotage and waste, choosing instead a path of reform, partnership, and accountability. In doing so, he has rekindled hope that Nigeria’s refineries can finally serve the people rather than drain them.
The MoU is not merely about machines roaring back to life; it is about restoring faith in Nigeria’s ability to manage its resources wisely. It is about proving that leadership, when anchored in integrity and foresight, can turn failure into opportunity. And it is about ensuring that the benefits of oil wealth are felt not in boardrooms alone, but in the everyday lives of Nigerians.
The socio-economic impact cannot be overstated. Reliable access to fuel empowers small businesses, sustains livelihoods, and reduces the daily anxieties of ordinary Nigerians. It is the difference between a struggling economy and one that breathes with confidence.
All of this has been made possible by the courage and foresight of Engr Bashir Bayo Ojulari. His willingness to depart from the corruption, waste, and sabotage that defined past approaches marks a turning point. By embracing transparency and efficiency, he has not only repositioned NNPC but also rekindled hope that Nigeria’s oil wealth can finally serve its people.
The MoU with the Chinese company is therefore more than a technical arrangement; it is a promise of renewal. It is a chance to prove that leadership anchored in vision can deliver tangible benefits; cheaper fuel, jobs, investment, and dignity. And it is a reminder that when Nigeria’s refineries roar back to life, so too will the aspirations of her people.
ONOGWU Muhammed, B.Tech (Chemical/Petroleum Tech.), LLB, BL, LLM-Energy and Oil & Gas Law (In View), ANIPR
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