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Dangote: NNPC Refineries May Never Work Again Despite $18bn Spent

President of the Dangote Group, Aliko Dangote, has cast serious doubt over the future of Nigeria’s state-owned refineries, saying the Port Harcourt, Warri, and Kaduna plants may never function again—despite consuming over $18 billion in rehabilitation funds.

Dangote made the statement on Thursday while hosting members of the Global CEO Africa Network from the Lagos Business School during a tour of the Dangote Refinery in Lekki, Lagos.

He criticized the persistent inefficiencies and waste surrounding the Nigerian National Petroleum Company Limited (NNPC)-managed refineries, describing attempts at turnaround maintenance as futile and outdated.

“Refurbishing those refineries is like trying to modernise a 40-year-old car. Even if you change the engine, the body can’t handle the technology,” Dangote remarked.

A Deal Reversed

Dangote recalled that his group had acquired the refineries in 2007, but had to return them a few months later after a change in government. He said former President Umaru Musa Yar’Adua reversed the sale, following advice from NNPC executives who argued the plants were undersold by former President Olusegun Obasanjo.

“We bought the refineries in January 2007 but had to give them back. They told Yar’Adua we got them as a parting gift,” he said.

Since then, billions have been spent with little or no output. Dangote added that while government refineries allocated just 22% of production to petrol, his 650,000-barrel-per-day refinery is now devoting over 50% of output to Premium Motor Spirit (PMS).

Obasanjo Echoes Concern

Dangote’s remarks align with earlier criticisms by ex-President Olusegun Obasanjo, who said the NNPC has consistently mismanaged the facilities. Obasanjo recalled how international oil companies like Shell had refused to manage the refineries, citing inefficiency and poor operational standards.

“They told me the refineries won’t work—and they haven’t,” Obasanjo said, adding that Nigeria may now struggle to sell the assets even as scrap.

He accused the NNPC of institutional corruption, saying:

“They [NNPC] knew they couldn’t make it work, but it was an avenue to embezzle. In a civilized society, many should be in jail.”

In January, Obasanjo again claimed that over $2 billion had been wasted on the refineries without results.

“If someone tells you today that the refineries are working, why then are they depending on Dangote?” he asked rhetorically.

Mounting Calls for Privatisation

The recent shutdown of the 60,000 barrels-per-day Port Harcourt refinery—just six months after it was declared operational—has reignited calls for the privatisation of Nigeria’s refineries.

Similarly, the Warri refinery, reopened in December 2024 by ex-NNPC boss Mele Kyari, was closed within a month.

The Manufacturers Association of Nigeria (MAN) and industry stakeholders have urged the government to sell off the refineries, labelling them as economic burdens.

Some analysts argue the facilities should be scrapped entirely, with proceeds redirected into building modular refineries that are more efficient and easier to manage.

A Trail of Wasteful Spending

Despite years of rehabilitation efforts, the refineries remain non-functional:

  • $1.4 billion was approved for the Port Harcourt refinery in 2021
  • $897 million was earmarked for Warri, and $586 million for Kaduna
  • ₦100 billion reportedly went into refinery rehab in 2021 alone
  • $396.33 million was spent on Turnaround Maintenance between 2013 and 2017

Yet, no tangible results have emerged.

NNPC Unreachable

Efforts to get a response from the NNPC were unsuccessful. The corporation currently has no official spokesperson, and messages sent to its listed contact lines went unanswered as of the time of filing this report.

The fate of Nigeria’s state-owned refineries remains uncertain, even as the private-sector-led Dangote Refinery continues to gain momentum as the country’s best hope for energy self-sufficiency.

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