Former President Olusegun Obasanjo has reiterated his long-held position that Nigeria’s state-owned refineries are unlikely to function effectively again, despite ongoing efforts by the Nigerian National Petroleum Company Limited to secure technical partners.
Speaking in a televised interview on Sony Irabor Live aired Saturday, Obasanjo stressed that public-private partnerships remain the most viable model for managing major national assets. He cited the success of the Nigeria Liquefied Natural Gas project, where private investors hold a majority stake, as evidence that such arrangements can work in Nigeria.
He criticised the management of the Port Harcourt, Warri, and Kaduna refineries, maintaining that systemic issues—including poor maintenance, corruption, and limited production capacity—have made them unviable. According to him, attempts during his presidency to attract international oil giant Shell to operate the refineries failed.
He said the company declined due to low profitability in the downstream sector, the relatively small size of Nigeria’s refineries, their deteriorating condition, and governance concerns.
Obasanjo also recalled a previous deal in which billionaire industrialist Aliko Dangote offered $750 million to acquire a 51 per cent stake in two refineries. The agreement, however, was reversed by his successor, Umaru Musa Yar’Adua, following pressure from the NNPC.
He expressed concern that billions of dollars have since been spent on rehabilitation with little result, noting that the estimated $16 billion expended is close to the amount used by Dangote to build his privately owned refinery.
Meanwhile, the current NNPC Group Chief Executive Officer, Bayo Ojulari, has acknowledged that the refineries, even after recent rehabilitation efforts, are operating below global standards and remain commercially uncompetitive—particularly when compared to the Dangote Refinery.
The NNPC has set a target of June 2026 to conclude the selection of technical partners as part of renewed efforts to revive the facilities. However, both Obasanjo and Dangote have cast doubt on the long-term viability of the refineries under their current structure.
- PenCom review drives ₦15.53trn stock market gain in 14 sessions - April 27, 2026
- Two killed in Kaduna road crash - April 27, 2026
- Why I chose WWE over Olympic dreams – Oba Femi - April 27, 2026
