Former President Olusegun Obasanjo has again stated that the refineries owned by the Nigerian National Petroleum Company Limited will not function effectively.
This comes as the NNPC continues efforts to secure technical partners to operate the Port Harcourt, Warri, and Kaduna refineries.
Speaking during a television interview aired on Saturday night, April 25, by Sony Irabor Live, Obasanjo said he had learned that public-private partnerships remain the most effective model for major projects.
He cited the Nigeria Liquefied Natural Gas as a successful example, noting that private sector participation has ensured its sustainability, unlike several government-run ventures.
Obasanjo said several government projects, including the Nigerian railways and the national shipping company, have struggled, adding that the same challenges persist within the NNPC refineries.
He maintained that he had earlier warned that the refineries would not work, recalling that some individuals questioned his position at the time.
The former president narrated his attempts to involve Shell in managing the refineries, offering both equity participation and operational control, but said the company declined.
He said Shell officials explained that their primary profits come from upstream operations, while downstream activities are less profitable and more service-oriented.
Obasanjo added that Shell also raised concerns about the small capacity of Nigeria’s refineries, noting that they fall below global standards.
He further said the oil firm pointed to poor maintenance practices, alleging that unqualified personnel were often engaged to handle critical operations.
According to him, Shell also cited corruption within the refinery system as a major reason for declining involvement.
Obasanjo disclosed that Aliko Dangote later offered $750 million to acquire a 51 per cent stake in two of the refineries, a move he described as a breakthrough at the time.
He said the payment was made, but the deal was reversed by his successor, the late Umaru Musa Yar’Adua, following pressure from the NNPC.
The former president said he had warned that reversing the sale would reduce the value of the refineries to scrap levels.
He added that only the current NNPC Group Chief Executive Officer, Bayo Ojulari, has been honest about the state of the refineries.
Obasanjo further claimed that about $16 billion has been spent on the refineries over time, an amount close to the estimated cost of building the Dangote refinery, yet without commensurate results.
