Obasanjo
Obasanjo Reveals Why Dangote’s $750m Refinery Management Offer Was Rejected
Former President Olusegun Obasanjo has shed light on Nigeria’s longstanding refinery challenges, detailing failed privatization attempts and the financial drain caused by government-managed facilities.
Speaking during an interview with Channels TV on Thursday, Obasanjo revisited efforts to revamp the Port Harcourt, Warri, and Kaduna refineries during his tenure. He disclosed how attempts to engage external expertise met with resistance.
“I asked Shell to come and manage the refineries for us, but they refused,” Obasanjo said. “I even suggested equity participation, but they declined. Their reasoning was clear—they profit more from upstream operations, while downstream barely breaks even. Additionally, they pointed out our refineries were too small, poorly maintained, and plagued by corruption.”
After Shell’s refusal, Africa’s richest man, Aliko Dangote, stepped in with a $750 million offer to manage the refineries through a public-private partnership. Despite this, the plan was halted by Obasanjo’s successor.
“My successor refunded Dangote’s money after NNPC claimed they could manage the refineries. I warned him they couldn’t, but he insisted,” Obasanjo recounted.
Since then, over $2 billion has been spent on the refineries with little to show for it. Obasanjo expressed confidence in Dangote’s ability to successfully operate his private refinery, contrasting it with the inefficiency of state-run operations.
“If Shell told me the refineries weren’t viable, I believed them. Now, if anyone says the government refineries are functioning, why are they turning to Dangote? Aliko will make his refinery work and deliver results,” he stated.
Obasanjo concluded with a Yoruba proverb, criticizing exaggerated claims of success. “They say after harvesting 100 heaps of yam, one might claim 200. You know what that means.”
The former president lamented that while global refineries were scaling up to handle 250,000 barrels daily, Nigeria remained stuck with smaller, underperforming plants.
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