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Former President Olusegun Obasanjo has reiterated that Nigeria’s state-owned refineries will not become operational, despite ongoing efforts by the Nigerian National Petroleum Company Limited to secure technical partners.
Speaking during a television interview, Obasanjo argued that government-run refineries have historically failed due to poor maintenance, corruption, and structural inefficiencies.
He disclosed that during his administration, attempts were made to привлечe private sector participation, including discussions with Shell, which declined involvement, citing low profitability in downstream operations, small refinery capacity, and operational challenges.
Obasanjo also revealed that businessman Aliko Dangote had previously offered $750 million to acquire a majority stake in two refineries, but the deal was later reversed by the late President Umaru Musa Yar’Adua following pressure from the national oil company.
He added that billions of dollars have since been spent on rehabilitation with limited results, noting that the facilities remain below global standards and commercially uncompetitive.
The remarks come as NNPC continues efforts to revamp the Port Harcourt, Warri, and Kaduna refineries, with a target to conclude the selection of technical partners by mid-2026.
Industry stakeholders, including Dangote, have also expressed doubts over the long-term viability of the refineries, as Nigeria increasingly relies on privately operated refining capacity.
