- Former President Reveals Shell’s Refusal, Dangote’s Efforts, and Billions Wasted
- Calls for Pragmatism in Refinery Operations
Former President Olusegun Obasanjo has shed light on the long-standing challenges facing Nigeria’s oil refineries, highlighting failed privatization efforts, corruption, and government inefficiencies that have cost the nation billions.
Speaking in an exclusive interview with Channels TV, Obasanjo recounted his administration’s attempts to revive the Port Harcourt, Warri, and Kaduna refineries through external partnerships. He revealed that Shell, a global oil giant, declined multiple offers to rehabilitate and manage the facilities, citing several reasons, including the refineries’ small capacities, poor maintenance, and corruption in operations.
“I asked Shell to come and run it for us, and they said no,” Obasanjo said. “They made it clear their profit lies in upstream operations, not downstream. They also noted that our refineries, producing 60,000 to 120,000 barrels per day, were too small compared to the global average of 250,000 barrels.”
After Shell’s refusal, Obasanjo turned to Africa’s richest man, Aliko Dangote, who formed a team and paid $750 million to operate the refineries through a public-private partnership (PPP). However, this effort was short-lived as Obasanjo’s successor refunded the money, opting instead to let the Nigerian National Petroleum Corporation (NNPC) manage the refineries.
“I told my successor that NNPC could not run the refineries effectively,” Obasanjo remarked. “Since then, over $2 billion has been wasted on the refineries, and they still don’t work.”
The former president contrasted the government’s inefficiency with Dangote’s private refinery, expressing confidence in its eventual success. “Aliko will not only make his refinery work; he will ensure it delivers,” Obasanjo asserted.
He concluded with a Yoruba proverb, criticizing inflated claims about the government’s achievements. “They say after harvesting 100 heaps of yam, there will also be 100 heaps of lies. This is exactly what we see with our refineries today.”
Obasanjo’s revelations underline the urgent need for pragmatic solutions to Nigeria’s refinery challenges, as the nation continues to rely heavily on imported petroleum products despite being a major crude oil producer.
