Former President Olusegun Obasanjo has reignited debate over Nigeria’s troubled refining sector, declaring that the country’s state-owned refineries may never function effectively again due to deep-rooted corruption, poor maintenance, and structural inefficiencies.
Obasanjo made the remarks during a televised interview aired at the weekend, as the Nigerian National Petroleum Company Limited (NNPCL) continues efforts to secure technical partners for the Port-Harcourt, Warri, and Kaduna refineries, with a target to conclude the process by June 2026.
Drawing from his experience in office, the former president argued that government-run enterprises in Nigeria have historically underperformed, while public-private partnerships (PPP) have delivered better results. He cited the Nigeria Liquefied Natural Gas (NLNG) project as a successful model where private sector participation ensured efficiency.
According to him, repeated attempts to rehabilitate the refineries have failed, reinforcing his long-held position that they cannot thrive under government control. “The NNPCL has refineries, and I said to people that it will never work,” he stated, adding that corruption remains a major obstacle.
Obasanjo also recounted unsuccessful efforts during his presidency to compel international operators, including Shell, to manage the facilities. He said the company declined multiple offers, citing limited profitability in downstream operations, the relatively small size of Nigeria’s refineries, poor maintenance culture, and concerns about corruption. “They told me clearly: there’s too much corruption around our refineries, and they don’t want to be part of that”, he stated.
The former president further revealed that businessman Aliko Ɗangote had once agreed to acquire a 51% stake in two of the refineries for $750 million during his administration. However, the deal was later reversed by his successor, Umaru Musa Yar’Adua, following pressure from officials within the national oil company.
Obasanjo said he personally met with Yar’Adua to explain the rationale behind the sale but was unable to prevent its reversal. He warned that the refineries, if sold today, might fetch far less value, describing them as nearing scrap condition.
He also criticised the billions spent on rehabilitation over the years, estimating that about $16 billion has been invested—an amount close to what Ɗangote used to build what is now Africa’s largest refinery. He noted that even the current NNPCL Group Chief Executive Officer, Bayo Ojulari, has acknowledged that the facilities are operating far below international standards, making their products commercially uncompetitive.
The NNPCL had previously reopened parts of the Port Harcourt and Warri refineries in 2024 after rehabilitation, but both were later shut down again due to poor performance.
Meanwhile, Ɗangote has maintained that his decision to build a private refinery was influenced by the cancellation of the earlier sale agreement, and he shares doubts about the future viability of government-owned refineries.
As of press time, the NNPCL had yet to officially respond to Obasanjo’s latest claims, which have once again spotlighted longstanding concerns over the management and sustainability of Nigeria’s refining infrastructure.
