Former President Olusegun Obasanjo has renewed his criticism of Nigeria’s state-owned refineries, insisting that the facilities in Port Harcourt, Warri and Kaduna will never function effectively despite repeated rehabilitation efforts and ongoing plans by the Nigerian National Petroleum Company Limited to secure technical partners.
Obasanjo made the remarks during a television interview aired on Saturday night on Sony Irabor Live and monitored by Spear News, where he argued that public-private partnerships remain the best option for managing critical national assets.
He cited the success of Nigeria LNG Limited, noting that the project has thrived because the private sector controls 51 per cent while the Nigerian government holds 49 per cent.
According to the former president, he had long warned that the refineries under government management would fail. He said while in office, he approached Shell and asked the company to take a stake in the facilities and manage them, but the oil giant declined.
Obasanjo said Shell officials explained that most of their profits come from upstream operations rather than downstream refining, adding that Nigeria’s refineries were too small by global standards, poorly maintained and surrounded by corruption.
He recalled that at the time, Shell informed him that modern refineries elsewhere processed between 250,000 and 300,000 barrels daily, while Nigeria’s facilities were significantly smaller and not in proper working condition.
The former president further disclosed that Aliko Dangote later offered $750 million to acquire 51 per cent stakes in two of the refineries, a proposal he described as a miracle at the time.
He said the funds were paid, but the transaction was later reversed after he left office when his successor, Umaru Musa Yar’Adua, allegedly gave in to pressure from officials within the NNPC.
Obasanjo said he warned Yar’Adua that if the refineries were sold later, they would likely be worth far less and end up being disposed of as scrap.
He also claimed that about $16 billion has been spent over the years on refinery rehabilitation, yet the facilities remain troubled and underperforming.
According to him, the amount is only $4 billion less than what Dangote reportedly invested in building the Dangote Refinery, widely recognised as Africa’s largest refinery.
Obasanjo praised current NNPC Group Chief Executive Officer Bayo Ojulari for being honest about the state of the refineries.
In November 2025, the NNPC announced plans to complete the selection of technical partners for the Port Harcourt, Warri and Kaduna refineries by June 2026.
Ojulari had earlier stated that although the Port Harcourt and Warri refineries were reopened in 2024, they were later shut again after operating below international standards, making their products commercially uncompetitive, especially against output from the privately owned Dangote refinery.
The communications office of the NNPC had yet to respond to requests for comment on Obasanjo’s latest claims as of the time of filing this report.
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