Alhaji Aliko Dangote, head of the Dangote Group, has said Nigeria’s government-run refineries in Port Harcourt, Warri, and Kaduna might never work properly again. This is despite reports claiming over $18 billion has been spent to fix them.
While hosting Global CEO Africa at the Dangote Petroleum Refinery, Dangote explained that his plan to build a 650,000-barrel-per-day plant came after the last President, Umar Musa Yar’Adua, refused to sell the refineries to him.
Dangote shared that him and other investors bought the refineries in January 2007. But after a new government came in, they had to give the refineries back to the state. Although they invested heavily later on, the refineries still don’t run.
He said, “The refineries we bought before, which belonged to Nigeria, produced about 22 percent of petrol. We bought them in 2007 but had to return them because of a change in government. The director at the time told Yar’Adua the refineries could work.”
He added, “Now, $18 billion has been spent on those refineries, and they still don’t work. I very much doubt they ever will.”
Dangote compared trying to fix the refineries to trying to upgrade a 40-year-old car with new parts. Even a new engine wouldn’t fit the old frame.
Former President Olusegun Obasanjo has expressed similar worries. He said in an interview that NNPC knew the refineries could never be operated successfully. Yet they blocked private firms from taking over.
Obasanjo said Dangote and others paid $750 million to buy the refineries. But Yar’Adua’s government later took the deal back.
“I told Yar’Adua the refineries wouldn’t work. I said, ‘NNPC can’t do it.’ He said, ‘They can.’ I told him, ‘When you try to sell again, no one will pay even $200 million for scrap.’ That’s where we are today,” Obasanjo explained.
He blamed corruption inside NNPC for blocking the sale. He also said that over $2 billion had been spent on the refineries in recent years with no real progress.
He said, “If anyone claims the refineries work, ask yourself why they rely on Aliko Dangote now. He will turn his refinery into something that works.”
