Former President Olusegun Obasanjo has reiterated his long-standing position that Nigeria’s state-owned refineries will never function effectively, as the Nigerian National Petroleum Company Limited continues efforts to secure technical partners for their operation.
Obasanjo made the remarks during a television interview aired on Sony Irabor Live, where he criticised the management and structure of the country’s refining sector.
According to him, past experiences have shown that public-private partnerships (PPP) remain the most viable model for sustaining large-scale national assets, citing the success of the Nigeria Liquefied Natural Gas project as an example.
“The NNPC has refineries, and I said to people that it will never work,” Obasanjo stated, emphasising that systemic issues have continued to undermine the facilities.
He recounted his attempts while in office to engage Shell to take over or manage the refineries, but the company declined. According to him, Shell cited low profitability in downstream operations, the small capacity of Nigeria’s refineries, poor maintenance culture, and widespread corruption as major concerns.
Obasanjo further revealed that businessman Aliko Dangote had once offered $750 million to acquire a 51 per cent stake in two of the refineries, a move he welcomed at the time. However, the deal was later reversed by his successor, Umaru Musa Yar’Adua, following pressure from the NNPC.
He argued that the reversal of the sale was a missed opportunity, adding that the refineries have since deteriorated further despite significant financial investments.
“Only the present NNPC head has told the country the truth,” Obasanjo said, referring to the current Group Chief Executive Officer, Bayo Ojulari, who recently acknowledged that the facilities operate below international standards and are commercially uncompetitive.
Obasanjo also expressed concern over reports that about $16 billion has been spent on the refineries—an amount close to what Dangote invested in building his privately owned refinery.
The former president maintained that without fundamental structural reforms and private sector involvement, Nigeria’s refineries would remain inefficient and unproductive.
As of November 2025, the NNPC said it was targeting June 2026 to finalise the selection of technical partners for the Port Harcourt, Warri, and Kaduna refineries, though stakeholders continue to express doubts about their long-term viability.
