Africa’s richest man and President of the Dangote Group, Alhaji Aliko Dangote, has delivered a scathing assessment of Nigeria’s state-owned oil refineries, declaring that the facilities in Port Harcourt, Warri, and Kaduna may never function properly again despite an estimated $18 billion spent on their rehabilitation.
Speaking at the Dangote Petroleum Refinery during a visit by members of Global CEO Africa, Dangote revealed that his decision to build the 650,000-barrel-per-day refinery stemmed from the government’s refusal to sell him the existing refineries under the late President Umar Musa Yar’Adua’s administration.
“We bought the refineries in January 2007, but had to return them due to a change in government. The managing director at that time convinced Yar’Adua that the refineries would work. As of today, they have spent about $18 billion on those refineries, and they are still not working. I doubt very much if they will ever work,” Dangote explained
Dangote compared the situation to attempting to modernise a 40-year-old car, suggesting that outdated infrastructure and incompatible upgrades have made true rehabilitation practically impossible.
“Even if you put a new engine in a car that old, the rest of the system cannot support it,” he said.
The business magnate’s remarks echoed earlier criticisms made by former President Olusegun Obasanjo, who had approved the initial sale of the refineries to Dangote and other investors for $750 million. That transaction was reversed shortly after Yar’Adua assumed office.
In a previous interview, Obasanjo had warned of the futility of maintaining the refineries under Nigerian National Petroleum Corporation (NNPC) management.
“I told Yar’Adua the refineries would not work. I said, ‘NNPC cannot do it.’ He said, ‘NNPC said they can.’ I told him, ‘When you want to sell them again, you won’t find anyone willing to pay even $200 million as scrap.’ And that is where we are today,” Obasanjo recalled.
He further accused the NNPC of sabotaging private sector participation due to entrenched corruption and inefficiency.
“The failure to privatise the refineries is the result of systemic corruption. Those responsible must be held to account,” Obasanjo said.
The former president also noted that an additional $2 billion has reportedly been spent on the refineries in recent years, with no meaningful output.
“If anyone says the refineries are working, why are they now relying on Aliko Dangote? He will make his refinery work and deliver,” Obasanjo added.
Dangote’s refinery, one of the largest in the world, is expected to play a central role in transforming Nigeria from a net importer of refined petroleum products into a self-sufficient producer.
With the state-owned refineries continuing to drain public funds with little to no output, many analysts view the Dangote facility as the country’s best hope for energy security and industrial revival.
