Former Nigerian President Olusegun Obasanjo has disclosed that the Nigerian National Petroleum Corporation (NNPC) turned down a $750 million proposal by billionaire businessman Aliko Dangote to manage the Port Harcourt and Kaduna refineries in 2007.
Obasanjo made the revelation during an exclusive interview with Channels Television, where he recounted how Dangote’s team proposed a Public-Private Partnership (PPP) arrangement to operate the refineries. Despite acknowledging its limitations in running the facilities, the NNPC rejected the offer.
“Aliko got a team together, and they paid $750 million to take part in a PPP to run the refineries,” Obasanjo explained. “My successor refunded their money, and I went to him and explained what had transpired. They wanted the refineries and had the capacity to run them. I said, ‘But you know they cannot run it.’”
The decision to decline Dangote’s offer has since raised questions about missed opportunities for revamping Nigeria’s refining capacity. At the time, the refineries struggled with inefficiencies, contributing to the country’s reliance on imported petroleum products.
Obasanjo served as Nigeria’s democratically elected president from May 1999 to May 2007, following his tenure as the nation’s military Head of State from February 1976 to October 1979. His presidency oversaw significant economic reforms, but controversies like the management of the oil sector remain subjects of national debate.
The Port Harcourt and Kaduna refineries, among the key facilities intended to bolster Nigeria’s energy sector, continue to face operational challenges years after the rejected offer. Meanwhile, Dangote has since embarked on building the Dangote Refinery, a private initiative expected to significantly reduce Nigeria’s dependency on fuel imports upon completion.
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