Nigeria pushes privatisation of four state‑run refineries as Chinese firms assess revival

Energy expert Dan Kunle addressed President Bola Tinubu in an open letter urging the privatisation of Nigeria’s four state‑owned refineries – Port Harcourt I and II, Warri and Kaduna – describing them as “four diseased fingers” that have drained public resources for decades. He cited the successful privatisation of the Eleme petrochemical complex as a precedent and called for a transparent, competitive process within a year, inviting both Nigerian and foreign, including Chinese, investors.

The letter coincided with ongoing investigations by the Economic and Financial Crimes Commission, which recovered over N38.66 billion and charged former managing directors of the Port Harcourt and Warri refineries with money‑laundering over alleged diversion of rehabilitation funds. Meanwhile, the Nigerian National Petroleum Corporation (NNPC) announced a memorandum of understanding with two Chinese companies, Sanjiang Chemical and Xinganchen, to explore a technical‑equity partnership for the Port Harcourt and Warri refineries. The MoU marks a shift from publicly funded repair programmes to a model where partners bear due‑diligence costs and aim for commercially viable, self‑sustaining operations, potentially expanding into petrochemicals. The push occurs as the privately built Dangote Refinery reshapes the domestic fuel market, heightening pressure on the ageing state assets.