Former President Olusegun Obasanjo has renewed his criticism of Nigeria’s state-owned refineries, saying they will “never work” as the Nigerian National Petroleum Company Limited seeks technical partners to operate facilities in Port Harcourt, Warri and Kaduna.
Speaking in a television interview aired Saturday, Obasanjo said government-run projects in Nigeria have historically underperformed, contrasting them with the success of the Nigeria Liquefied Natural Gas, a public-private partnership in which private investors hold a majority stake.
He said attempts during his presidency to привлеч private operators for the refineries were unsuccessful, including overtures to Shell plc.
According to Obasanjo, Shell declined to participate, citing limited profitability in downstream operations, the relatively small capacity of Nigeria’s refineries compared with global standards, poor maintenance and concerns about corruption.
Obasanjo said he later welcomed an offer from industrialist Aliko Dangote who proposed $750 million for a 51% stake in two refineries, a deal he said was completed before he left office.
However, he said the agreement was reversed by his successor, the late Umaru Musa Yar’ a Dua following pressure from officials within the state oil company.
Obasanjo said Nigeria has since spent billions of dollars attempting to rehabilitate the refineries, estimating about $16 billion — close to the reported cost of building Dangote’s privately owned refinery.
In November 2025, NNPC said it was targeting June 2026 to finalize the selection of technical partners for the refineries.
The company’s group chief executive officer, Bayo Ojulari has said that despite rehabilitation efforts and brief reopenings in 2024, the Port Harcourt and Warri refineries remain below international standards and struggle to compete commercially, particularly against the Dangote Refinery.
Dangote has also previously expressed skepticism about the viability of the state-owned refineries, saying his decision to build a private refinery followed the reversal of the earlier sale.
NNPC did not immediately respond to requests for comment on Obasanjo’s remarks.
