Obasanjo: Nigeria’s Refineries Will Never Work as NNPC Seeks New Technical Partners

Former President Olusegun Obasanjo has reiterated his long-held position that Nigeria’s state-owned refineries will never function efficiently, as the Nigerian National Petroleum Company Limited continues efforts to secure technical partners for the facilities.

Speaking during a televised interview on Sony Irabor Live, Obasanjo argued that government-run refineries have consistently failed due to structural inefficiencies, poor maintenance, and corruption. He stressed that public-private partnerships remain the most viable model for managing such assets, citing the success of the Nigeria Liquefied Natural Gas as an example.

The former president revealed that during his time in office, he attempted to привлечe global energy giant Shell to manage Nigeria’s refineries, either through equity participation or operational control, but the company declined.

According to him, Shell cited several concerns, including limited profitability in downstream operations, the relatively small capacity of Nigeria’s refineries, poor maintenance practices, and widespread corruption in the sector.

Obasanjo also recalled that businessman Aliko Dangote once offered $750m to acquire a majority stake in two of the refineries, a deal he described as a “miracle opportunity.” However, the agreement was later reversed by his successor, Umaru Musa Yar'Adua, following pressure from officials within the national oil company.

He lamented that billions of dollars have since been spent on rehabilitation efforts with little to show for it, noting that the funds nearly match the cost of building the privately owned Dangote refinery.

The comments come as NNPC continues its search for technical partners to operate the Port Harcourt, Warri, and Kaduna refineries, with a target set for June 2026. The company’s Group Chief Executive Officer, Bayo Ojulari, has previously acknowledged that the facilities are operating below international standards and remain commercially uncompetitive.

The national oil firm has yet to officially respond to Obasanjo’s latest remarks.