Former President Olusegun Obasanjo has disclosed how the Nigerian National Petroleum Corporation (NNPC) turned down a $750 million offer from billionaire businessman Aliko Dangote to manage the Port Harcourt and Kaduna refineries in 2007.
Obasanjo made this revelation during an exclusive interview with Channels Television, where he shared insights into the challenges surrounding Nigeria’s struggling refineries.
The former president explained that the NNPC, now operating as the Nigerian National Petroleum Company Limited (NNPCL), was aware of its limitations in managing the nation’s refineries but still rejected Dangote’s offer.
“When I was president, I wanted to do something about the three refineries we have: Port Harcourt, Warri, and Kaduna. , Aliko got a team together after I asked Shell to come and run it for us. And Shell said they wouldn’t.
“Aliko got a team together and they paid $750m to take part in PPP (Public–Private Partnership) in running the refineries. My successor refunded their money and I went to my successor and told him what transpired. He said NNPC said they wanted the refineries and they could run it. I now said but you know they cannot run it.”
However, this effort was short-lived as Obasanjo’s successor reversed the decision and refunded Dangote’s investment.
“I went to my successor and told him what transpired. He said NNPC claimed they wanted the refineries and could run them. I then said, ‘But you know they cannot run it,’” Obasanjo added.
The former president expressed frustration over the mismanagement of the refineries, revealing that more than $2 billion had been spent on them since 2007 without yielding results.
“If a company like Shell tells me what they told me, I will believe them. But here we are, over $2 billion squandered, and the refineries still won’t work,” he lamented.
Backstory
- In December 2024, NNPCL announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, is now operational.
- This plant is running. We have not completed 100 per cent, we are steaming the other part of the plant as we progress. Currently, this plant is running. There are many people who don’t think this is real.
People don’t believe that real things can happen in our country. We believe that this is a source of pride for our country. I just want you to know that everything you see is real.” He stated.
In response to the latest development, President Bola Tinubu hailed the reopening of the Warri Refining and Petrochemical Company (WRPC) describing it as a significant achievement in 2024.
What you should know
- Obasanjo served as Nigeria’s democratically elected president from May 1999 to May 2007, during which he focused on reforming critical sectors of the economy.
- Before this, he was Nigeria’s military head of state between February 1976 and October 1979.
- His administration commenced the efforts to deregulate the downstream sector.
