NNPC refineries will never work again – Former President Olusegun Obasanjo has again declared that Nigeria’s state-owned refineries may never return to full and efficient operations under government control, citing decades of mismanagement, corruption, and poor maintenance.
Obasanjo made the remark during a recent television interview, where he revisited his long-held concerns about the state of the refineries owned by the Nigerian National Petroleum Company Limited (NNPC Limited). According to him, the facilities have become symbols of systemic inefficiency and waste.
He argued that despite billions of dollars spent on turnaround maintenance and rehabilitation over the years, the refineries in Port Harcourt, Warri, and Kaduna have consistently failed to deliver sustainable results.
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“The NNPC has refineries, and I said to people that it will never work,” Obasanjo said.
The former president revealed that while in office, he sought the expertise of Shell to manage Nigeria’s refineries. However, the global energy giant declined the offer after evaluating the assets.
According to Obasanjo, Shell cited several reasons for its refusal. These included the relatively small size of the refineries compared to global standards, poor maintenance practices, and the high level of corruption surrounding their operations.
He explained that Shell executives concluded the refineries were not commercially viable. They also expressed concerns about becoming entangled in the inefficiencies and opacity that have long plagued the sector.
Obasanjo also recounted how billionaire industrialist Aliko Dangote once offered to acquire a majority stake in two of the refineries for about $750 million during his administration. The deal was completed, but it was later reversed by the late President Umaru Musa Yar’Adua after pressure from NNPC officials.
That decision, Obasanjo suggested, was a costly mistake.
He lamented that Nigeria has since spent an estimated $16 billion attempting to revive the refineries—an amount close to what Dangote invested in building the massive Dangote Petroleum Refinery from scratch.
Meanwhile, NNPC Group Chief Executive Officer Bayo Ojulari has acknowledged that the refineries are operating far below international standards and are not commercially competitive. NNPC is now seeking technical and equity partners, including foreign investors, to help restore the facilities.
Obasanjo pointed to the success of Nigeria LNG Limited as evidence that public-private partnerships can work in Nigeria when properly structured. He argued that the government should reduce its direct involvement in refinery operations and allow experienced private operators to take the lead.
His comments have reignited the debate over whether Nigeria should continue investing in its aging refineries or fully embrace privatization.
With the emergence of the Dangote Refinery and the continued underperformance of state-owned plants, many industry analysts believe Nigeria’s downstream oil sector may be entering a new era—one driven more by private capital than government control.
For now, Obasanjo’s blunt assessment underscores a painful reality: after decades of failed promises and massive spending, the future of Nigeria’s public refineries remains uncertain.
Keyphrase: NNPC refineries will never work again.
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