Former President Olusegun Obasanjo says Nigeria’s state-owned refineries are unlikely to ever run effectively, despite NNPC’s push to bring in technical partners.
Speaking Saturday on “Sony Irabor Live”, Obasanjo said public-private partnerships remain the only viable model for major national assets.
He pointed to NLNG, where private investors hold a majority stake, as proof the model can work in Nigeria.
He slammed the management of the Port Harcourt, Warri, and Kaduna refineries, blaming “poor maintenance, corruption, and limited production capacity” for making them unviable.
Obasanjo recalled that efforts to get Shell to run the refineries during his presidency failed. The oil major declined, citing low downstream profits, the small size of Nigeria’s plants, their poor state, and governance concerns.
He also revisited a deal where Aliko Dangote offered $750 million for a 51% stake in two refineries.
His successor, Umaru Musa Yar’Adua, reversed it after pressure from NNPC.
Since then, Obasanjo said, billions have been sunk into rehabilitation with little to show. He put the spend at about $16 billion — close to what Dangote used to build his private refinery.
Current NNPC GCEO Bayo Ojulari has admitted the refineries, even after recent fixes, run below global standards and are not commercially competitive — especially against Dangote Refinery.
NNPC targets June 2026 to pick technical partners in a fresh bid to revive the plants. But both Obasanjo and Dangote doubt the refineries can survive long-term under their current structure.
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
