Alhaji Aliko Dangote, President of the Dangote Group, has expressed skepticism about the possibility of the state-owned Port Harcourt, Warri, and Kaduna refineries ever operating again. He pointed out that these refineries, managed by the Nigerian National Petroleum Company Limited, have absorbed nearly $18 billion without achieving functionality.
Dangote made these remarks on Thursday while hosting members of the Global CEO Africa from the Lagos Business School after they toured his Dangote Petroleum Refinery in Lekki, Lagos. He noted that his refinery, which has a capacity of 650,000 barrels per day, dedicates over 50% of its output to Premium Motor Spirit (petrol), compared to only 22% from the government refineries.
He recalled how he and his team returned the government refineries after acquiring them in January 2007, following a change in administration. Dangote cited a previous managing director’s assurance to then-President Yar’Adua that the refineries could be operational again, despite their ongoing failures.
He compared the refineries’ maintenance to the modernisation of a 40-year-old car, suggesting that the outdated equipment cannot effectively adapt to new technology.
His comments echoed former President Obasanjo’s concerns regarding the refineries, which faced shutdowns shortly after being declared operational by the former NNPC Group Managing Director, Mele Kyari, in late 2024. Obasanjo had mentioned that international companies like Shell declined to run the facilities when requested. He also highlighted the poor state of the refineries, warning that they would not sell for even $200 million as scrap.
Obasanjo emphasized that prior investment in the refineries had been mismanaged, with over $2 billion reportedly wasted since then without achieving operational success. He stated that while others made inflated claims about the refineries, Dangote’s facility was on track to be successful.
Following recent shutdowns of the Port Harcourt refinery, calls for privatization of these government-owned refineries have increased, with entities like the Manufacturers Association of Nigeria deeming them detrimental to the economy. There are suggestions to sell the defunct facilities as scrap to fund modular refineries instead.
Despite significant investments in refurbishing these refineries, including $1.4 billion approved for Port Harcourt and other allocations for Warri and Kaduna, they remain inactive. Attempts to contact the NNPC for comment were unsuccessful, as their communication channels did not respond.
