Key points
- PETROAN has called on NNPC Ltd. to expedite negotiations with two Chinese firms interested in operating the Port Harcourt and Warri refineries.
- The association says successful refinery rehabilitation could lower fuel prices through increased domestic refining capacity and competition.
- The appeal comes amid declining global crude oil prices following easing geopolitical tensions in the Middle East.
Main story
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to accelerate discussions with two Chinese companies seeking to participate in the operation and completion of the Port Harcourt and Warri refineries.
The call was made by PETROAN National President, Billy Gillis-Harry, in a statement issued on Friday against the backdrop of declining global crude oil prices and ongoing efforts to strengthen Nigeria’s domestic refining capacity.
The appeal follows the signing of a Memorandum of Understanding (MoU) between NNPC Ltd. and two Chinese firms—Sanjiang Chemical Company Ltd. and Xingcheng (Fuzhou) Industrial Park Operation and Management Company Ltd.—for a Technical Equity Partnership (TEP) arrangement covering the Port Harcourt and Warri refinery projects.
PETROAN said the successful conclusion of the partnership could significantly improve the performance of the downstream petroleum sector by enhancing local refining output and reducing reliance on imported petroleum products.
According to the association, increased domestic refining capacity would strengthen supply stability, improve market efficiency and contribute to lower fuel prices for consumers.
The issues
Nigeria has continued to face challenges in achieving self-sufficiency in petroleum refining despite substantial investments in state-owned refineries over the years.
The Port Harcourt and Warri refineries have undergone rehabilitation efforts aimed at restoring their operational capacity, but concerns remain over efficiency, sustainability and long-term management.
The latest development comes as global crude oil prices trend downward, with Brent crude falling to about $77–$78 per barrel following the ceasefire agreement between the United States and Iran and expectations of improved oil exports through the Strait of Hormuz.
Industry stakeholders believe that lower crude prices, combined with efficient domestic refining operations and exchange rate stability, could translate into more affordable petroleum products for Nigerians.
What’s being said
PETROAN President, Billy Gillis-Harry, urged the Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, to conclude negotiations with the Chinese partners and move swiftly toward operationalising the refinery projects.
According to him, private-sector-driven management of the refineries would improve efficiency and stimulate healthy competition within the downstream market.
“If the refineries are successfully revived and operated as private-sector-driven facilities, petroleum product prices could decline further due to improved efficiency and increased domestic refining capacity,” he said.
Gillis-Harry added that a combination of moderating crude oil prices, stable exchange rates and lower refining costs would provide relief to businesses and consumers struggling with rising operating costs.
He reaffirmed PETROAN’s commitment to advocating for a transparent, competitive and consumer-focused downstream petroleum sector capable of delivering affordable energy and sustainable economic growth.
What’s next
NNPC Ltd. is expected to continue negotiations with the Chinese companies as both sides work toward finalising the proposed Technical Equity Partnership arrangement.
Industry observers will also be watching developments in the global oil market and the impact of declining crude prices on domestic fuel pricing.
Should the refinery partnerships proceed successfully, stakeholders anticipate increased local refining output, reduced dependence on imports, improved fuel supply security and greater price competition within the downstream sector.
Bottom line
PETROAN believes the proposed partnership between NNPC Ltd. and Chinese investors presents an opportunity to revive Nigeria’s refining capacity, improve fuel supply and lower petroleum product prices. With crude oil prices easing globally, stakeholders say swift action on refinery reforms could help deliver long-term benefits for consumers, businesses and the broader economy.
 has urged the Nigerian National Petroleum Company...){kind=link}