Obasanjo: How Shell rejected offer to run refineries over corruption

Former President Olusegun Obasanjo has disclosed that his administration persuaded Shell Plc to run Nigeria’s refineries but the international oil company rejected the offer, citing too much corruption in the oil sector.

Obasanjo, who served as Nigeria’s Head of State from 1976 to 1979 and later as president between 1999 and 2007, disclosed this in a recent interview with Financial Times.

The former president said: “When I was president, I invited Shell and I said, look, come and take equity participation and run our refineries for us. They refused. They said our refineries have not been well maintained.

“We have brought amateurs rather than bringing professionals. They said there’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess.”

Speaking on the government’s promises to fix Nigeria’s refineries, Obasanjo added: “How many times have they told us that? And at what price?

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“Those problems, as far as the government refineries are concerned, have never gone away. They have even increased. So if you have a problem like that and that problem is not removed then you aren’t going anywhere.”

The former president further stated that some prominent individuals benefiting from fuel importation would make efforts to frustrate the Dangote Oil Refinery and Petrochemicals in Lagos State.

He added that if the Dangote refinery succeeds, it could boost investment from Nigerians and foreigners.

Obasanjo said: “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.

“If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated.”

The President of Dangote Group, Aliko Dangote, had said somepeople were making efforts to frustrate the $20bn refinery.

The Star