By Ayomide Otitoju
President of Dangote Group, Alhaji Aliko Dangote, has cast doubt over the operational future of Nigeria’s government-owned refineries in Port Harcourt, Warri, and Kaduna, stating that despite investments totalling approximately $18 billion, the facilities remain non-functional.
Speaking during an interactive session with participants of the Global CEO Africa Programme from Lagos Business School, following a tour of the Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, the industrialist criticised the inefficiency of state-run refineries under the management of the Nigerian National Petroleum Company Limited (NNPCL).
“The refineries have received billions in funding, yet they are still not operational. I sincerely doubt they will ever work,” Dangote remarked.
Recalling his brief ownership of the refineries during the final months of former President Olusegun Obasanjo’s administration in 2007, Dangote said the assets were returned to the Federal Government under the late President Umaru Musa Yar’Adua, following claims by then-refinery managers that they were undervalued.
“We bought the refineries in January 2007, but had to return them months later. The MD at the time convinced Yar’Adua that the refineries would work. Till date, after $18 billion has been spent, they’re still not working,” he said.
Dangote likened the continued turnaround maintenance efforts to retrofitting outdated technology. “Trying to upgrade those refineries is like modernising a car built 40 years ago. Even if you change the engine, the body cannot withstand the demands of new technology,” he added.
His comments echo those of former President Obasanjo, who in multiple interviews had described the refineries as corrupt drains on public funds. Obasanjo disclosed that the refineries were once rejected by multinational companies like Shell due to their deteriorated condition.
Obasanjo also confirmed that Dangote and other investors paid $750 million to acquire the facilities in 2007, only for the deal to be revoked by his successor. He lamented that Nigeria continues to squander billions on the refineries, which he predicted would be difficult to sell even as scrap.
The recent closures of the Port Harcourt and Warri refineries—months after being declared operational—have intensified calls for their full privatisation. Industry experts, including the Manufacturers Association of Nigeria, have called on the Federal Government to offload the refineries and redirect proceeds into more viable modular refinery projects.
Official data shows that over $2.9 billion was approved between 2021 and 2023 for rehabilitation projects: $1.4 billion for Port Harcourt, $897 million for Warri, and $586 million for Kaduna. Yet, operations remain suspended with no tangible output.
The NNPC has yet to respond to inquiries, and as of press time, calls and messages to official contact lines listed on its website remained unanswered.
