Nigeria's Refineries 'Will Never Work,' Insists Former President Obasanjo

Nigeria's aging and notoriously inefficient state-owned refineries remain a persistent thorn in the side of national development, and former President Olusegun Obasanjo has once again voiced his deep skepticism about their viability. In a recent statement, Obasanjo declared unequivocally that these facilities "will never work," a sentiment he has held for years and one that resonates with many Nigerians who have witnessed decades of failed attempts at rehabilitation and operation. His comments cast a shadow over the current administration's efforts to revive the Port Harcourt, Warri, and Kaduna refineries, suggesting that the underlying problems are far more entrenched than mere technical fixes.

Obasanjo's critique is rooted in his firsthand experience during his own presidency, where efforts to attract credible private sector partners proved fruitless. He pointed to a confluence of factors that make these refineries unattractive to international investors. These include their relatively small refining capacity, which is often considered uneconomical by global standards, coupled with a history of neglect in maintenance and a pervasive culture of corruption. These issues, he argues, create a governance environment that deters legitimate international oil companies from engaging, despite the country's vast crude oil reserves.

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The NNPC has refineries, and I said to people that it will never work.

The former president's stark assessment serves as a critical counterpoint to the government's narrative of progress and reform in the oil sector. While the Nigerian National Petroleum Company Limited (NNPC) continues to seek technical partners, Obasanjo's pronouncements suggest that without a fundamental overhaul of management, transparency, and operational scale, these refineries are destined to remain a drain on national resources. His words underscore a long-standing debate in Nigeria about the efficacy of state-run enterprises versus private sector-led initiatives, particularly in a sector as crucial and complex as oil refining. The challenge for the current leadership is to either decisively prove Obasanjo wrong by implementing truly transformative reforms or to acknowledge the deep-seated issues he highlights and consider alternative strategies for ensuring the nation's energy security and refining capacity.

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The refineries were considered 'too small,' lacked proper upkeep and were surrounded by 'too much corruption,' making them unattractive to investors.