In what can be considered as controversial statement and in line with his characteristic stance that usually attracts divergent views, former President Olusegun Obasanjo has disclosed that the Nigerian National Petroleum Company Limited (NNPCL) refineries in Port Harcourt, Warri and Kaduna many never work again in spite of the NNPCL’s efforts to secure technical partners for the refineries.
Speaking during a televised interview on Sony Irabor Live , Obasanjo pointed to structural and historical challenges that, in his view, have continued to undermine the refineries’ performance.
He said, “One of the lessons that I learnt is that PPP (public-private partnership) works. Look, one project that has not been destroyed by the government in Nigeria is the NLNG (Nigeria Liquefied Natural Gas), where the private sector has 51 per cent, and the Nigerian government has 49 per cent.
“See what we did with Nigerian railways. See what we did with the national shipping company. See what we are doing now, even with the NNPCL . The NNPCL has refineries, and I said to people that it may never work. And a man had the audacity to say, ‘Am I a chemical engineer?”
The former president recalled past attempts during his administration to attract global operators, including Shell, to manage the refineries under a partnership model. According to him, those efforts did not yield results.
“Look, when I was there, I called Shell. I said, ‘Look, please, I beg you, come and take 10 per cent equity and run the refinery for us.’ They said no. I said, ‘Okay, if you don’t want to take equity, don’t take equity. Come and run the refineries. They said no,” he stated.
He further explained that discussions with company officials highlighted commercial and operational concerns that influenced their decision.
“So, I called him, and I said, ‘Tell me, be honest with me. Why don’t you want to handle this?’ He said first, they want to let me know that they make most of their profits on the upstream, not the downstream.”
He said they run their downstream without making a loss, but they don’t make a lot of profit from it. It’s more of a service than a major profit-making. So that’s number one.
“Number two: he said our refineries are too small. This was when I was an elected President. He said our refineries are too small. One is 60,000 barrels, and another is 100,000 barrels. He said refineries at that time were in the range of 250,000 barrels to 300,000 barrels. Number three: he said our refineries are not well-maintained. We call quacks and amateurs to come and maintain our refineries. The refineries are not in good order. He said, ‘Number four, there’s too much corruption around our refineries, and they don’t want to be part of that,” Obasanjo explained.
Obasanjo also revisited a previous transaction involving the Dangote Group, led by Aliko Dangote, which he said offered a pathway for private sector participation at the time.
“Until one day, Aliko (Dangote) came and offered $750m to take two of the refineries; that will be 51 per cent. I said, ‘Wow, God, you are really a God of miracles.’ I told Aliko to bring the money quickly. They brought the money, and they paid,” he said.
He noted, however, that the arrangement did not endure beyond his tenure, following a policy reversal under his successor, the late Umaru Musa Yar’Adua.
Obasanjo said, “When I left office, NNPC went to my successor and convinced him. So I got up. I went to Umar. I said, ‘Look, Umar, maybe you don’t know; this is why we did what we did.’ He said, ‘Well, NNPC came to me.’ I said, ‘But you know that NNPCL cannot run this thing. He said he knew. I asked, ‘Then why did you give in? He said because of pressure. And I said, ‘Look, when you sell these refineries, you will not get $200million for them, because you will sell them as scrap.’”
Obasanjo further referenced recent disclosures by the current NNPCL leadership, noting that , “Only the present NNPCL head has told the country the truth. But in the meantime, I was told that they have spent about $16bn, which is only $4bn short of what Aliko used to build Africa’s largest refinery,” the former President said.
The current Group Chief Executive Officer of NNPCL, Bayo Ojulari, had earlier indicated that despite rehabilitation efforts and the brief reopening of the Port Harcourt and Warri refineries in 2024, the facilities remain below global performance benchmarks, affecting their competitiveness.
In November 2025, NNPCL set a June 2026 target to conclude the selection of technical partners, a move seen as part of broader reforms to improve efficiency and output.
Meanwhile, Dangote has maintained that his decision to establish a privately owned refinery followed the earlier reversal of the refinery sale, adding that the future of the state-owned facilities remains uncertain.