NNPC Refineries Will Never Work, Insists Obasanjo

Former President Olusegun Obasanjo has once again voiced his deep skepticism regarding the functionality of Nigeria's state-run refineries, asserting they are destined to remain inoperable. His remarks, made during a television interview, echo a long-held conviction that the current model of management is fundamentally flawed and incapable of delivering results.

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One of the lessons that I learnt is that PPP (public-private partnership) works.

Obasanjo detailed his past efforts to attract international oil companies, specifically Shell, to operate the Port Harcourt, Warri, and Kaduna refineries. He revealed that Shell executives cited several critical issues, including the refineries' inadequate size compared to international standards, a lack of proper maintenance, and pervasive corruption, as reasons for their refusal to engage. These explanations lend credence to Obasanjo's assertion that the facilities are beyond simple repair or reform under the current system.

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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.

The former president pointed to the success of the Nigeria Liquefied Natural Gas (NLNG) project, where private sector majority ownership has ensured efficiency, as a model for what could be achieved. He also recalled a significant offer from industrialist Aliko Dangote to invest in and operate two of the refineries, suggesting that private sector participation is not only possible but potentially transformative for Nigeria's downstream oil sector. Obasanjo's persistent critique highlights the ongoing debate about the best approach to managing critical national assets and the persistent challenges of corruption and inefficiency in public enterprises.

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So, I called him, and I said, ‘Tell me, be honest with me. Why don’t you want to handle this?’