President of the Dangote Group, Alhaji Aliko Dangote, has cast serious doubt on the viability of Nigeria’s state-owned refineries, stating that despite over $18 billion reportedly spent on their rehabilitation, the facilities in Port Harcourt, Warri, and Kaduna may never operate effectively again.
Dangote made the remarks while receiving members of the Global CEO Africa who visited the 650,000-barrel-per-day Dangote Petroleum Refinery. He revealed that the decision to build his refinery was borne out of the failure of the federal government to privatize the refineries during the administration of the late President Umaru Musa Yar’Adua.
“The refineries we bought in January 2007 were producing about 22 percent of Premium Motor Spirit (PMS). But following a change in government, we had to return them. The new administration, advised by the then managing director, believed the refineries would function properly,” Dangote explained.
He added, “Today, they’ve spent over $18 billion on those refineries, and they are still not operational. I doubt they will ever work. Trying to modernize a refinery built over 40 years ago is like installing a new engine in an old car — the body can’t handle the shock of new technology.”
His concerns echo those of former President Olusegun Obasanjo, who has also publicly criticized the management of the refineries. Obasanjo confirmed that Dangote and other investors had paid $750 million to acquire the refineries, but the deal was reversed by President Yar’Adua.
“I warned that the NNPC could not run those refineries. They claimed they could, but history has proven otherwise,” Obasanjo said. “When you want to sell them now, you may not even find a buyer willing to pay $200 million for scrap. NNPC continued because of the corruption within.”
Obasanjo also revealed that Shell, a key industry player, had advised against continued investment in the refineries. “More than $2 billion has been squandered recently, and the refineries still won’t work. If anyone tells you they are working, why are they all turning to Aliko? He will not only make his refinery work, but he will also make it deliver.”
The Dangote Refinery has already made headlines by reducing its petrol price to N820 per litre in recent weeks, undercutting the cost of imported fuel and raising hopes for improved energy stability in Nigeria.
The fate of Nigeria’s aging refineries remains uncertain amid growing calls for accountability and strategic investment in modern infrastructure.
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