“DEAD ON ARRIVAL”: OBASANJO DECLARES NNPC REFINERIES UNSALVAGEABLE DESPITE JUNE 2026 PARTNER HUNT
GREATRIBUNETVNEWS–EX-PRESIDENT says $16bn wasted on Port Harcourt, Warri, Kaduna plants; blames “corruption,” recalls Shell snub and reversed Dangote $750m deal.
Key Issues:
– Refineries “Unlikely to Ever Run Effectively”: _”Former President Olusegun Obasanjo says Nigeria’s state-owned refineries are unlikely to ever run effectively, despite NNPC’s June 2026 push to bring in technical partners.”_
– Only PPP Model Works for National Assets: _”Speaking Saturday on ‘Sony Irabor Live’, Obasanjo said public-private partnerships remain the only viable model for major national assets.”_ _”He pointed to NLNG, where private investors hold a majority stake, as proof the model can work in Nigeria.”_
– Management Slammed for Failure: _”He slammed the management of the Port Harcourt, Warri, and Kaduna refineries, blaming ‘poor maintenance, corruption, and limited production capacity’ for making them unviable.”_
– Shell Walked Away: _”Obasanjo recalled that efforts to get Shell to run the refineries during his presidency failed. The oil major declined, citing low downstream profits, the small size of Nigeria’s plants, their poor state, and governance concerns.”_
– Dangote Deal Killed by NNPC Pressure: _”He also revisited a deal where Aliko Dangote offered $750 million for a 51% stake in two refineries.”_ _”His successor, Umaru Musa Yar’Adua, reversed it after pressure from NNPC.”_
– $16 Billion Wasted: _”Since then, Obasanjo said, billions have been sunk into rehabilitation with little to show. He put the spend at about $16 billion — close to what Dangote used to build his private refinery.”_
Current NNPC GCEO Bayo Ojulari has admitted the refineries, even after recent fixes, run below global standards and are not commercially competitive — especially against Dangote Refinery.
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