Former President Olusegun Obasanjo has unveiled startling details about Nigeria’s refinery woes, shedding light on failed privatization efforts and massive financial losses incurred under government management.
In an exclusive Channels TV interview on Thursday, Obasanjo recounted his administration’s attempts to rehabilitate the Port Harcourt, Warri, and Kaduna refineries.
He revealed that Shell, despite being invited to take over operations, declined due to concerns over the refineries’ inefficiency, corruption, and small capacities compared to global standards.
“They told me our refineries were too small—60,000, 100,000, and 120,000 barrels per day—while the global average was 250,000 barrels,” Obasanjo said. “Shell also cited poor maintenance and rampant corruption as reasons for their refusal.”
After Shell’s rejection, Obasanjo turned to billionaire Aliko Dangote, who proposed a $750 million Public-Private Partnership (PPP) to manage the refineries. However, the deal was annulled by Obasanjo’s successor, the late President Umaru Musa Yar’Adua, based on assurances from the Nigerian National Petroleum Corporation (NNPC) that it could manage the refineries better.
“Aliko’s team paid $750 million for the PPP. My successor refunded the money, saying NNPC wanted to run the refineries. I later explained the situation to him, but he insisted,” Obasanjo explained.
The results, according to Obasanjo, have been catastrophic. “Since then, over $2 billion has been squandered on these refineries, yet they remain nonfunctional,” he lamented.
Obasanjo expressed confidence in Dangote’s privately owned refinery, contrasting its prospects with the continued failures of government-run facilities. “If a company like Shell declined to manage them and billions have been wasted, what does that tell you? Aliko will make his refinery work and deliver.”
Concluding with a Yoruba proverb, Obasanjo criticized the government’s hollow promises regarding refinery repairs. “They say after harvesting 100 heaps of yam, there will be 100 heaps of lies. You know what that means,” he said.
