President of the Dangote Group, Alhaji Aliko Dangote, has raised concerns over the viability of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna, declaring that they may never function properly again. He revealed that despite the government spending about $18 billion on their rehabilitation, the facilities remain ineffective. During a visit by members of Global CEO Africa to the Dangote Petroleum Refinery, Dangote recounted how a previous opportunity to acquire the refineries was thwarted by a change in administration during President Umar Yar’adua’s tenure, who chose to reclaim the assets under the belief they could be fixed by the Nigerian National Petroleum Corporation (NNPC).
Dangote likened the efforts to rehabilitate the old refineries to modernizing a 40-year-old car with outdated technology, emphasizing that even with engine upgrades, the structural limitations remain a barrier to performance. He implied that political misjudgment and corruption were key factors that derailed progress. Former President Olusegun Obasanjo corroborated these claims, stating that the refineries were knowingly mismanaged and would now barely sell for scrap value. Obasanjo added that despite Shell’s professional assessment warning against continued investments, his successor ignored the advice, fueling further financial waste.
Both Dangote and Obasanjo criticized the NNPC for misleading leadership and enabling corruption under the guise of technical capability. Obasanjo emphasized that the same NNPC officials who claimed they could run the refineries effectively rejected private sector bids that could have salvaged the situation. He stated that over $2 billion has been squandered since then, with no working output from the refineries. In contrast, Dangote’s privately-owned 650,000 bpd refinery is fully operational, reflecting what competent private investment could achieve where government efforts have failed.
