Obasanjo Declares NNPC Refineries ‘Will Never Work Again’ as Debate Over Nigeria’s Energy Future Deepens

Former President Olusegun Obasanjo has reignited national debate over Nigeria’s struggling refinery sector after declaring that the country’s state-owned refineries will never function effectively again. His comments come as the Nigerian National Petroleum Company Limited continues efforts to secure technical partners for the Port Harcourt, Warri and Kaduna refineries.

Speaking during a televised interview, Obasanjo said repeated attempts by successive governments to revive the facilities had failed due to poor maintenance, corruption, outdated infrastructure and weak management. His remarks have renewed public scrutiny over billions of dollars spent on rehabilitation projects with limited results.

Obasanjo Recounts Failed Attempts to Save Refineries

The former president Olusegun Obasanjo revealed that while in office, he explored private-sector solutions to improve refinery operations. According to him, he approached Shell and invited the oil giant to take equity stakes or directly manage the refineries. However, the company reportedly declined all offers.

Obasanjo said Shell explained that its profits largely came from upstream oil exploration rather than downstream refining. Obasanjo also claimed the company considered Nigeria’s refineries too small by international standards, poorly maintained, and surrounded by excessive corruption risks.

He stated that these realities convinced him years ago that the facilities would remain a burden unless transferred to more competent private operators through a public-private partnership model.

Dangote Deal Reversal and Billions Spent

Obasanjo also revisited a controversial transaction involving Aliko Dangote, who reportedly offered $750 million to acquire controlling stakes in two of the refineries during his administration. He said the payment was made, but the transaction was later reversed under the late President Umaru Musa Yar’Adua after pressure from officials within the national oil company.

According to Obasanjo, reversing that deal was a costly mistake. He argued that Nigeria later spent vast sums attempting to repair the same facilities, without achieving lasting success.

He further claimed that approximately $16 billion had since been spent on refinery rehabilitation—an amount he compared with the cost of constructing the privately owned Dangote Refinery, now regarded as Africa’s largest refinery.

NNPC Seeks New Partners Amid Fresh Concerns

The current Group Chief Executive Officer of NNPC, Bayo Ojulari, recently acknowledged that despite earlier reopening announcements, the Port Harcourt and Warri refineries were still operating below international standards and remained commercially uncompetitive.

This admission has added urgency to the company’s plan to identify technical partners by June 2026. Analysts say private investment, transparent management and clear policy direction will be essential if Nigeria hopes to end decades of fuel import dependence.

Obasanjo’s latest comments may be controversial, but they reflect growing frustration among citizens who continue to bear the cost of fuel instability despite the country’s vast crude oil reserves.