NNPC’s Lie Made Yar’Adua Reject Dangote’s $750m Offer To Manage Refineries — Obasanjo

Former President Olusegun Obasanjo has revealed new details surrounding Nigeria’s ongoing refinery challenges, including the failed attempt to privatise the refineries and the subsequent financial losses under government management.

In an exclusive interview with Channels TV monitored by our Correspondent on Thursday, Obasanjo discussed the Port Harcourt, Warri, and Kaduna Refineries, emphasising his efforts to seek external help for their rehabilitation and management during his presidency.

He recounted how Shell, one of the world’s largest oil companies, refused to take on the responsibility despite his government’s invitation.

“I asked Shell to come and run it for us and Shell said they wouldn’t. I said, ‘Please come and take equity.’ They said no. I said ‘okay, don’t take equity, come and run it, they said no’,” Obasanjo explained.

The former president further elaborated on his conversation with the Shell boss, who cited several reasons for the company’s refusal. He said Shell’s primary business was in upstream oil production, not refining, and the refineries in Nigeria were too small by global standards.

“He said our refineries were too small: 60,000 barrels, 100,000 barrels, and I think 120,000 barrels. At that time, the average refinery was going for 250,000 barrels,” Obasanjo recalled. “He also mentioned that the refineries were poorly maintained and that corruption was rampant around their operations, which made Shell hesitant to get involved.”

After Shell’s rejection, Obasanjo turned to Nigerian businessman and later Africa’s richest man, Aliko Dangote, who assembled a team to offer a solution. According to Obasanjo, Dangote paid $750 million for a Public-Private Partnership (PPP) arrangement to operate the refineries.

“Aliko got a team together and they paid $750 million to take part in PPP in running the refineries. My successor refunded their money and I went to him and explained what happened, but he said NNPC wanted to run the refineries, claiming they could manage them,” Obasanjo said.

Despite this, Obasanjo expressed confidence in Dangote’s ability to manage his privately owned refinery, noting that government-run refineries had failed to operate effectively.

“I was told not too long ago that since that time, more than two billion dollars have been squandered on the refineries, and they still will not work,” Obasanjo said. “If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it is working, why are they now with Aliko? And Aliko will make his own refinery work; not only make it work, he will make it deliver.”

He concluded with a Yoruba proverb, drawing a comparison between the government’s inflated claims about the refineries and deceptive promises.

“They say after he has harvested 100 heaps of yam, he will also have 100 heaps of lies. You know what that means,” Obasanjo said, emphasising the ongoing failure to resolve Nigeria’s refinery crisis.