Former President Olusegun Obasanjo has unveiled troubling details about Nigeria’s refinery challenges, citing failed privatization efforts and significant financial losses under government control.
Speaking on Channels TV, Obasanjo shared his administration’s attempts to rehabilitate the Port Harcourt, Warri, and Kaduna refineries, revealing that Shell refused to take equity or manage the facilities due to issues like corruption, poor maintenance, and small operational capacities.
“When I called Shell, they gave four reasons, including corruption and the refineries being too small—far below global standards of 250,000 barrels,” OBJ disclosed.
Following Shell’s refusal, Africa’s richest man, Aliko Dangote, assembled a team and paid $750 million to operate the refineries through a public-private partnership. However, Obasanjo’s successor refunded Dangote’s investment, opting for NNPC to manage the refineries—a decision that has cost Nigeria over $2 billion with little progress.
OBJ praised Dangote’s ability to run his privately owned refinery effectively, contrasting it with government inefficiencies. He highlighted that despite massive investments, the refineries remain non-functional, adding, “If Shell won’t touch it, why should we expect better results from the government?”
Concluding with a Yoruba proverb, Obasanjo likened inflated claims about refinery performance to exaggerations about a bountiful yam harvest, emphasizing the gap between promises and reality.