In a candid interview with former Nigerian President Olusegun Obasanjo, he revealed new insights into the challenges facing Nigeria’s refineries, particularly the Port Harcourt, Warri, and Kaduna facilities. He discussed his efforts to privatize the refineries during his tenure and the obstacles that led to significant financial losses under government management.
Obasanjo shared that during his presidency, he sought external assistance to rehabilitate and manage the refineries. He initially approached Shell, hoping the multinational oil company would help restore the country’s oil infrastructure. However, Shell rejected the offer, citing several reasons for their reluctance, including the small size of Nigeria’s refineries and their lack of proper maintenance. According to Obasanjo, Shell explained that their profits primarily came from upstream oil operations, not downstream refineries, and expressed concerns about the level of corruption in the sector.
Undeterred by Shell’s refusal, Obasanjo turned to Aliko Dangote, Africa’s wealthiest businessman, who was keen to step in and manage the refineries. Dangote’s team proposed a public-private partnership (PPP) model and offered $750 million to take over operations. However, Obasanjo revealed that his successor, who took office after him, refunded the money and allowed the state-run Nigerian National Petroleum Corporation (NNPC) to continue managing the refineries.
Despite this setback, Obasanjo remained confident in Dangote’s ability to run the refinery operations effectively. He pointed to Dangote’s success with his privately owned refinery and contrasted it with the ongoing inefficiencies of the government-run facilities. Obasanjo expressed frustration that over $2 billion had been wasted on the refineries with little to show for it, reinforcing his belief that the government was ill-equipped to manage them.
Reflecting on the missed opportunity, Obasanjo noted the stark difference between the success of private companies and the failure of government-run enterprises. He cited Dangote’s refinery as an example of what could have been achieved if the refineries were managed by the private sector, emphasizing that the government’s inability to run the facilities properly had led to continued economic setbacks.
In a final comment, Obasanjo shared a Yoruba proverb, highlighting the dishonesty surrounding the claims of success regarding the refineries. “They say after he has harvested 100 heaps of yam, he will also have 100 heaps of lies,” he concluded, drawing attention to the misleading claims about the state of Nigeria’s refineries.
Obasanjo’s interview sheds light on the longstanding challenges of managing Nigeria’s oil sector, urging both the government and private companies to reconsider their approach to ensuring the nation’s refineries are efficiently managed and restored to full capacity.
