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  • NNPC Signs Deal with Chinese Firms to Revive Port Harcourt, Warri Refineries

    The Nigerian National Petroleum Company Limited has signed a memorandum of understanding with two Chinese firms to explore the completion and operation of the Port Harcourt and Warri refineries.

    The agreement, disclosed in a statement dated May 3, 2026, marks a fresh step in efforts to restore Nigeria’s refining capacity.

    MoU signed in China

    According to NNPC, the MoU was signed on April 30, 2026, in Jiaxing City, China.

    The deal was executed by NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, alongside Guan Jianzhong of Sanjiang Chemical Company and Bill Bi of Xinganchen Industrial Park.

    The partnership is expected to focus on completing outstanding rehabilitation work and supporting the operation and maintenance of both refineries.

    Focus on expansion, cleaner fuel

    NNPC said the collaboration would also explore expansion and upgrade options for the facilities.

    This includes plans to meet cleaner fuel standards, improve profitability and increase petrochemical production.

    The arrangement is further expected to support the development of gas-based industrial hubs around the refineries.

    Ojulari described the agreement as a significant milestone after months of negotiations.

    “All parties recognise mutually beneficial opportunities for the development and long-term sustainability of NNPC’s refining assets,” he said.

    Agreement not yet final

    The NNPC boss clarified that the MoU is non-binding and subject to regulatory approvals and further negotiations.

    He added that it is part of broader efforts to secure technical partners for the rehabilitation and long-term management of Nigeria’s refining infrastructure.

    Background on refinery projects

    The Port Harcourt refinery rehabilitation was approved in 2021 at a cost of about $1.5 billion to restore its 210,000 barrels per day capacity.

    Similarly, the Warri refinery is undergoing upgrades valued at around $897 million to revive its 125,000 barrels per day capacity and integrate petrochemical production.

    The Port Harcourt facility briefly resumed operations in late 2024 after years of shutdown but was later halted again due to operational and financial issues.

    The projects are part of NNPC’s wider strategy to reduce dependence on imported petroleum products and strengthen local refining capacity.

  • Dangote Refinery Exports Jump 770% as NNPC Hits Five-Year Trading Peak

    Dangote Petroleum Refinery has recorded a sharp rise in jet fuel exports, surging by about 770 per cent over two years, as global demand and supply disruptions reshape the aviation fuel market.

    Latest shipment data shows exports climbed to 158,000 barrels per day in April 2026, up from about 18,000 bpd in April 2024.

    Europe, Africa Drive Growth

    The refinery’s expansion has been driven largely by increased demand from Europe and African markets.

    European-bound shipments rose to about 70,000 bpd by April 2026, while exports to African countries grew by roughly 115 per cent within the last year.

    Industry data indicates that ongoing tensions in the Middle East have pushed buyers to seek more stable and closer supply sources, boosting demand for Dangote’s output.

    Shift in Global Supply Chains

    The refinery’s location in West Africa has offered a strategic advantage, reducing transit time to Europe and avoiding high-risk routes such as the Red Sea.

    Between December 2025 and April 2026 alone, total exports nearly doubled, rising from 81,000 bpd to 158,000 bpd.

    NNPC Reports Strong Performance

    Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) announced a five-year peak in crude oil trading, reaching 1.71 million barrels per day.

    The figures were disclosed in its one-year mandate report covering April 2025 to April 2026.

    Operational Milestones Highlighted

    The report also noted increased production by NNPC Exploration and Production Limited, which hit 365,000 bpd in December 2025.

    Progress was recorded in gas infrastructure, including the completion of key sections of the Ajaokuta-Kaduna-Kano pipeline.

    NNPC further highlighted its partnership with the Dangote Refinery, including the crude-for-naira initiative and its equity stake in the facility.

    Reforms and Expansion Efforts

    The company said it had resumed consistent remittances to the Federation Account since July 2025 and introduced new crude grades and lubricant products to expand market reach.

    It also noted internal reforms, including staff expansion and leadership inclusion programmes.

    The latest figures point to growing momentum in Nigeria’s oil and gas sector, as both public and private players scale operations to meet shifting global demand.

     

  • Fuel Price War Begins as Filling Stations Cut Petrol to N1,295

    Some filling stations across Nigeria have begun reducing petrol prices, signaling fresh competition among marketers as operators adjust rates to attract customers.

    Petrol price drops in Abuja

    Findings show that in Abuja and surrounding areas, petrol is now sold for about ₦1,295 per litre, down from ₦1,330, reflecting a ₦35 reduction.

    The new pricing has already been observed at outlets operated by AA Rano, Ranoil, and Mobil in different parts of the city.

    Marketers align with major operators

    The adjustment brings their rates closer to prices offered by major downstream players such as NNPC Limited, MRS, AP Ardova, and NIPCO, which have maintained pump prices between ₦1,290 and ₦1,295.

    Industry watchers say the alignment suggests a growing price competition within the sector.

    Marketers explain price cut

    President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, said the reduction is aimed at attracting more customers.

    He noted that operators are adjusting strategies to remain competitive in the current market environment.

    Global oil market still volatile

    Despite the local adjustment, fuel prices have remained relatively stable since April 9, 2026, even as global crude oil prices continue to react to geopolitical tensions.

    As of Friday, crude traded around $94 per barrel for West Texas Intermediate and $105 for Brent crude, influenced by concerns around the Strait of Hormuz.

     

  • Dangote Refinery Gets Only 5 of 15 Crude Cargoes Monthly — CEO

    The Dangote Petroleum Refinery is receiving barely a third of the crude oil it is entitled to under the Federal Government’s crude-for-naira arrangement, the refinery’s Chief Executive Officer, David Bird, said on Wednesday.

    The shortfall and what it means

    Bird made the disclosure during an interview on ARISE News, saying the refinery currently receives only about five crude oil cargoes per month, against an agreed volume of 13 to 15 cargoes.

    “What we see under that agreement, we should be getting about 13 to 15 cargoes a month. And that’s what we could process to meet Nigeria’s domestic fuel requirements. Currently, we’re only getting five. So, that’s an underperformance against that pre-agreed volume contract,” he said.

    The gap means the refinery is sourcing preferred Nigerian crude grades from the international market at significantly higher costs, a difference Bird said Nigeria is effectively losing.

    “That value between the purchase price and the premium that we’re now seeing is money that Nigeria is leaking to the international trading community,” he said.

    What the crude-for-naira deal is designed to do

    Bird pushed back against the common assumption that the crude-for-naira arrangement was set up primarily to benefit Dangote Refinery.

    “Crude for naira is not there to benefit Dangote Refinery. That is a fundamental misunderstanding,” he said. The crude-for-naira programme is designed to provide resilience to the foreign exchange rate. It is the benefit of the country to process domestic crude in the domestic currency.”

    Under the arrangement, the refinery purchases crude oil in naira rather than dollars, with the aim of reducing pressure on Nigeria’s foreign exchange reserves and stabilising the naira.

    Refinery running at full capacity

    Despite the crude supply shortfall, Bird said the facility is currently operating at its full installed capacity of 650,000 barrels per day, supplying both domestic and regional markets.

    However, he noted that the Middle East conflict has pushed up operational costs across the board, including freight, insurance, and logistics expenses.

    He also confirmed that the refinery operates without subsidies or discounts on its crude inputs, meaning fuel pricing remains tied directly to international market forces.

    What Bird is asking for

    Bird called for improved crude allocation to the refinery and urged long-term strategic planning, including the building of national petroleum reserves, to strengthen supply chain resilience across Nigeria’s oil sector.

    The shortfall in crude supply is significant for ordinary Nigerians. If the refinery cannot consistently process enough local crude to meet domestic fuel demand, it increases the country’s exposure to imported fuel costs — putting further pressure on pump prices at a time when many Nigerians are already struggling with the high cost of living.

    The Federal Government and the Nigerian National Petroleum Company Limited have not publicly responded to Bird’s figures. The refinery’s ability to receive its full crude allocation under the crude-for-naira deal is expected to remain a key issue in ongoing negotiations between Dangote and NNPCL.