Nigeria’s long-running effort to restore its state-owned refineries is back in focus, as the Nigerian National Petroleum Company Limited (NNPC) signs a new agreement with foreign partners, raising fresh questions about delivery, oversight, and value for money after years of stalled rehabilitation attempts.

The latest move involves a Memorandum of Understanding with two Chinese firms to explore a Technical Equity Partnership aimed at completing and operating the Port Harcourt and Warri refineries. The agreement was signed in Jiaxing City, China, by NNPC Group Chief Executive Officer, Bayo Ojulari, alongside executives of the partner companies, according to the national oil firm.

NNPC says the proposed arrangement will not only complete outstanding construction work but also introduce operational expertise to run and maintain the facilities efficiently. Plans also include upgrading the refineries to meet modern fuel standards and expanding into petrochemicals and gas-based industrial hubs, a strategy officials believe could improve long-term profitability.

However, this development comes against the backdrop of previous failed rehabilitation efforts. Billions of dollars have already been spent on refinery repairs with limited results, and one such project is currently under investigation by anti-corruption authorities. Analysts say the new agreement will likely be judged not by intent, but by measurable outcomes and transparency in execution.

While the refinery deal progresses, NNPC’s latest financial report shows mixed signals. The company recorded a revenue increase to N2.77 trillion in March 2026, alongside a significant rebound in profit after tax. Crude oil production also rose slightly, reversing earlier declines, while gas output continued its steady growth, reflecting relative stability in that segment.

Despite these gains, operational challenges persist. Pipeline reliability dropped sharply within the same period, and production levels remain constrained by infrastructure and logistical issues. With the government and the public closely watching, the success of this new refinery initiative may ultimately hinge on whether NNPC can break a cycle of repeated promises and deliver a functional, self-sustaining refining system.