Olawunmi Ajibike
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Former President Olusegun Obasanjo has expressed strong skepticism about the future of Nigeria’s state-owned refineries, declaring that facilities operated by the Nigerian National Petroleum Company Limited are unlikely to function efficiently again due to deep-rooted structural challenges.
Speaking during an appearance on Sony Irabor Live on News Central TV, Obasanjo argued that prolonged government control has trapped the refineries in a cycle of inefficiency driven by corruption, weak accountability, and political interference.
He also downplayed optimism surrounding the rehabilitation of the Port Harcourt Refinery, a project involving Maire Tecnimont. According to him, without a decisive shift toward private-sector leadership, such interventions are unlikely to deliver sustainable results.
Drawing a comparison, Obasanjo pointed to the success of the Nigeria Liquefied Natural Gas, attributing its efficiency to strong private sector participation and disciplined corporate governance—factors he said are largely missing in Nigeria’s refining sector.
Reflecting on his time in office, Obasanjo disclosed that he had previously approached Shell to manage Nigeria’s refineries, even offering an equity stake. The proposal was declined, with the company reportedly citing the refineries’ limited capacity, poor maintenance, and corruption risks as obstacles to profitability.
He further noted that years of inadequate maintenance and insufficient technical expertise have left the country’s refineries unable to compete with modern global facilities.
Obasanjo’s position contrasts with the optimism of Bola Ahmed Tinubu, who has maintained that ongoing rehabilitation efforts will restore functionality. The former president, however, insists that without fundamental governance reforms and a greater role for the private sector, the refineries will continue to underperform.