NNPC’s China deal may revive refineries, boost Downstream sector — Iledare
Lagos, May 2026 (TBL Africa) A petroleum economist, Prof. Wumi Iledare, says the Memorandum of Understanding (MoU) signed between NNPC Ltd., and two Chinese firms could mark a major step toward addressing Nigeria’s long-standing refinery rehabilitation challenges.
Iledare a Professor Emeritus of Petroleum Economics and Policy Research at Louisiana State University’s Centre for Energy Studies, said this in an interview on Monday in Lagos.
The MoU, signed with Sanjiang Chemical Company Ltd. and Xingcheng (Fuzhou) Industrial Park Operation and Management Company Ltd.
in China, is expected to support a potential Technical and Engineering Partnership (TEP) covering the Port Harcourt Refinery and Warri Refinery.
According to Iledare, although the MoU is not yet a binding commercial agreement, it reflects efforts to introduce fresh technical expertise, operational support, and possible investment into Nigeria’s downstream petroleum sector.
He noted that the true value of the partnership would depend on whether it produces measurable operational improvements and sustainable refining performance.
The expert explained that the collaboration could help speed up the rehabilitation and operational efficiency of the Port Harcourt and Warri refineries through improved technical coordination, modernisation, and maintenance systems.
He, however, cautioned that the success of the arrangement would depend on effective implementation, financing clarity, and regulatory approvals.
Iledare further stated that the proposed technical equity partnership could encourage technology transfer, workforce training, and local capacity development by exposing Nigerian workers to modern refining technologies and operational practices.
“If properly structured, it could strengthen long-term sustainability and reduce dependence on external expertise over time,” he said.
The professor also stressed the need for transparency and accountability, especially considering Nigeria’s history of heavy spending on refinery rehabilitation projects with limited results.
He said stakeholders would expect clear governance structures, defined performance targets, regulatory oversight, and evidence that the partnership could deliver commercially viable and efficient outcomes for the country’s downstream petroleum industry.
“Ultimately, the success of the partnership will not be judged by the MoU announcement.
“But by whether it delivers commercially viable, operationally efficient, and nationally beneficial outcomes for Nigeria’s downstream petroleum sector,” he said.
