RismadarVoice Reporters, April 27, 2026
Former President Olusegun Obasanjo has reiterated his long-held position that Nigeria’s state-owned refineries will never become functional, even as the Nigerian National Petroleum Company Limited (NNPC) continues efforts to secure technical partners for their operation.
Speaking during a televised interview on Sony Irabor Live on Saturday, Obasanjo argued that structural inefficiencies, corruption, and poor maintenance have rendered the facilities beyond redemption.
He pointed to the success of the Nigeria Liquefied Natural Gas project as evidence that public-private partnerships (PPP) offer a more viable model for Nigeria’s energy sector.
“One project that has not been destroyed by the government in Nigeria is NLNG,” Obasanjo said, noting that the venture’s majority private-sector ownership has ensured efficiency and profitability.
The former president disclosed that during his administration, he made several attempts to bring in private operators, including global energy giant Shell, to manage the refineries. However, the company declined.
According to him, Shell cited multiple concerns: limited profitability in downstream operations, the relatively small capacity of Nigeria’s refineries compared to global standards, poor maintenance practices, and entrenched corruption.
Obasanjo said the firm described the facilities as substandard, warning that their operational scale ranging between 60,000 and 100,000 barrels per day fell far below the 250,000 to 300,000 barrels typical of modern refineries.
He further revealed that relief appeared in sight when businessman Aliko Dangote offered $750 million to acquire a 51 per cent stake in two refineries. The deal was completed during his tenure.
However, the transaction was later reversed by his successor, Umaru Musa Yar’Adua, following pressure from within the NNPC.
Obasanjo criticised the decision, arguing that the refineries have since depreciated significantly and would now fetch far less value if sold.
The former president also raised concerns over the estimated $16 billion reportedly spent on refinery rehabilitation over the years, a figure he noted is close to the cost incurred by Dangote to build the Dangote Refinery now Africa’s largest.
Despite repeated rehabilitation efforts, the Port Harcourt and Warri refineries, which were briefly reopened in 2024, have since been shut down again after operating below international standards.
NNPC Group Chief Executive Officer, Bayo Ojulari, recently acknowledged that the facilities remain commercially uncompetitive, particularly when compared to privately operated refineries.
In November 2025, the NNPC announced plans to finalise the selection of technical partners for the Port Harcourt, Warri, and Kaduna refineries by June 2026.
However, Obasanjo’s latest remarks cast further doubt on the viability of these efforts, reinforcing a growing sentiment among industry stakeholders including Dangote that Nigeria’s state-owned refineries may no longer be salvageable.
As of press time, the NNPC has not issued an official response to the former president’s comments.
