The Nigerian National Petroleum Company Limited (NNPCL) has responded to recent remarks made by former President Olusegun Obasanjo regarding the management of the country’s refineries.
- Ex-President Obasanjo criticized NNPCL’s capacity to efficiently operate Nigeria’s refineries
- Obasanjo highlighted failed attempts to privatize the refineries, alleging $2 billion in losses under government control
- NNPCL spokesperson invited Obasanjo to tour the rehabilitated refineries to verify their operational status
In a recent interview, Obasanjo criticized the nation’s oil company, stating that it lacks the capacity to efficiently operate the refineries.
He also highlighted repeated failed attempts by the government to privatize the facilities, claiming these failures resulted in alleged financial losses of approximately $2 billion under government control.
What Obasanjo said
Former President Olusegun Obasanjo spoke on the efforts made during his tenure, to address challenges at Nigeria’s refineries—Port Harcourt, Warri, and Kaduna.
He revealed that he approached Shell to manage the refineries, offering equity and operational roles, but the company declined.
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Obasanjo shared that after Shell’s refusal, Africa’s richest man, Aliko Dangote, assembled a team and paid $750m to operate the refineries through a public-private partnership.
“Aliko got a team together and they paid $750m to take part in PPP (Public–Private Partnership) in running the refineries. My successor refunded their money, and I went to my successor; I told him what transpired; he said NNPC said they wanted the refinery and they could run it, and I said, but you know they cannot run it,” Obasanjo stated.
NNPCL responds
In response, NNPCL spokesperson, Femi Soneye invited former President Obasanjo to visit the Port Harcourt refinery for a firsthand tour to verify its operational status.
Soneye in a statement, said, “We extend an open invitation to President Obasanjo for a tour of the rehabilitated refineries to witness firsthand the progress made under the new NNPC Limited.”
Soneye clarified that NNPCL not only performed turnaround maintenance on the refinery but also undertook a complete overhaul to bring it up to world-class standards according to The Punch
“This process was not merely the Turnaround Maintenance of the past but a full-scale overhaul designed to meet world-class standards. Similarly, we are currently conducting the same comprehensive rehabilitation of the old Port Harcourt Refinery and Kaduna Refinery,” he said.
Soneye further stated that NNPCL has transitioned from a government corporation to a private limited liability entity, evolving from a loss-making organization to a profit-driven international energy firm.
Cost of refineries repairs
While expressing confidence in Dangote’s ability to effectively manage his privately owned refinery, Obasanjo also voiced frustration over the mismanagement of the government-owned refineries, highlighting that, despite substantial spending since 2007, no progress has been made.
DON’T MISS THIS: Dangote reveals NNPC no longer holds a 20% stake in Dangote refinery
According to BusinessDay, the Nigerian government has spent billions of dollars over decades on the repair and maintenance of its three refineries.
Specifically, $1.5 billion was allocated for the Port Harcourt refinery, $897.6 million for the Warri refinery, and $586.9 million for the Kaduna refinery.
