Former President Olusegun Obasanjo has reiterated his long-held position that Nigeria’s state-owned refineries may never become functional, despite ongoing efforts by the Nigerian National Petroleum Company Limited to revive the facilities.
Obasanjo made the assertion during a televised interview on Sony Irabor Live aired on Saturday night, where he questioned the viability of continued government control of the refineries located in Port Harcourt, Warri and Kaduna.
He argued that public-private partnerships remain the most effective model for managing major national assets, citing the Nigeria Liquefied Natural Gas as a successful example of collaboration between the government and private investors.
According to him, repeated government interventions in key sectors, including railways and shipping, had yielded poor outcomes, adding that the same pattern was evident in the management of the refineries.
The former president disclosed that during his tenure, he made unsuccessful attempts to involve Shell in the operation of the refineries.
He said the oil firm declined both equity participation and management offers, citing limited profitability in the downstream sector, inadequate refinery capacity, poor maintenance culture and corruption concerns.
Obasanjo explained that Shell officials informed him that Nigeria’s refineries were relatively small compared to global standards and had suffered from years of neglect and substandard maintenance practices.
He added that corruption surrounding the facilities also discouraged serious investors from taking over their operations.
The ex-president, however, recalled that businessman Aliko Dangote once offered $750m to acquire majority stakes in two of the refineries, a proposal he said was accepted during his administration.
He lamented that the deal was later reversed by his successor, the late Umar Yar’Adua, following pressure from officials of the national oil company.
Obasanjo noted that billions of dollars had since been spent on the refineries with little to show, warning that the facilities might ultimately be sold as scrap if current trends persist.
He also commended the current Group Chief Executive Officer of the NNPC, Bayo Ojulari, for acknowledging the poor state of the refineries.
The NNPC has set June 2026 as a target to conclude the selection of technical partners to manage the facilities, which have undergone multiple rehabilitation efforts over the years.
Despite these interventions, the refineries have struggled to meet international standards or operate competitively, particularly in comparison to the privately owned Dangote refinery.
Meanwhile, the national oil company had yet to respond to enquiries on the former president’s latest remarks as of the time of filing this report.
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