Billionaire industrialist Aliko Dangote has cast serious doubt over the future of Nigeria’s state-owned refineries, describing them as outdated, unviable, and a continuous drain on national resources.
While addressing executives of Global CEO Africa at the Lekki-based Dangote Refinery, the business magnate didn’t mince words. He revealed that the Nigerian National Petroleum Company Limited (NNPC) has spent approximately $18 billion on reviving the moribund Port Harcourt, Warri, and Kaduna refineries—with no results.
Dangote compared the attempted turnaround maintenance to “modernizing a car built 40 years ago,” suggesting the technology is too outdated to function efficiently even with upgrades. “Even if you change the engine, the body will not be able to take the shock of that new technology,” he said.
He recalled how he once acquired the refineries during President Obasanjo’s administration in 2007, only to return them after President Yar’Adua came into office. According to Dangote, NNPC officials convinced Yar’Adua the facilities would work, leading to the reversal of the privatization.
“And as of today, they have spent about $18bn on those refineries, and they are still not working. And I doubt very much if they will work,” he said.
Dangote’s comments echoed those of former President Olusegun Obasanjo, who previously claimed that oil companies like Shell had refused to manage the refineries due to their inefficiency. Obasanjo noted that Yar’Adua canceled a $750 million sale to Dangote and his partners, calling the reversal a national setback.
Recent data revealed that over $2 billion has been funneled into rehabilitation projects since 2021, including $1.4 billion for Port Harcourt, $897 million for Warri, and $586 million for Kaduna. Still, the facilities remain dormant, with even the 2024 declared "re-openings" failing to keep them operational for more than a few months.
Calls for privatization have intensified. Groups like the Manufacturers Association of Nigeria and various oil sector stakeholders now urge the federal government to scrap the refineries and redirect funds toward modular refineries.
“The refineries are a burden. We are wasting billions while private alternatives like the Dangote Refinery are already delivering results,” one stakeholder said anonymously.
The Federal Government has yet to issue a fresh response, and NNPC officials could not be reached for comment at the time of this report.
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