Obasanjo Doubts Workability of PH, Warri Refineries Despite NNPC’s Announcement

•Narrates how Yar’adua returned Dangote’s $750m payment for oil facilities

•National oil company invites ex-President on tour of rehabilitated refineries

Emmanuel Addeh in Abuja

Former President Olusegun Obasanjo yesterday expressed reservations over the workability of the Port Harcourt and Warri refineries, despite recent announcements by the Nigerian National Petroleum Company Limited (NNPC) that the oil facilities had been restarted, years after they were shut down.

The ex-Nigerian leader also reiterated how his successor, late President Umar Yar’adua, refunded Aliko Dangote the $750 million payment to the federal government for a Public, Private Partnership (PPP) arrangement for the management of the facilities.

In November and December, 2024 respectively, the NNPC announced the revamping of the refineries, even if partially, with Port Harcourt at 70 per cent level functionality, while the Warri refinery is currently operating at 60 per cent.

The federal government and its lending partners are currently fixing the Port Harcourt, Warri and Kaduna refineries for over $3 billion, despite allegedly rejecting the $750 at the time.

But speaking on a national television, Obasanjo likened the declaration by the NNPC that the crude oil refining facilities are now working to a farmer who lied about the volume of his crops during the planting season, insisting that the truth will always be revealed during the harvest season.

But in a response, the leadership of the national oil company invited the former Nigerian leader on a tour of the refineries to confirm their functionality.

“So if anybody tells you now that they (the refineries ) are working, why are they not with Aliko (in the market)? And Aliko will make his own refinery work. Not only make it work, he will make it deliver.

“Whether we announce our own government refineries are working or not working, look, it is like they say in Yoruba adage, ‘the man who plants 100 heaps of yams and says he has planted 200 heaps, they say after he has harvested 100 heaps of yam, he will also harvest 100 heaps of lies,” he said in response to a question on the oil assets.

He also narrated how Yar’adua returned the money paid by Dangote for the refineries to manage them, even after Shell rejected his plea to take over the running of the oil refineries for several reasons.

“Well, you know what I said about the Port Harcourt refinery? Do you remember? I will remind you. I said when I was president, I wanted to do something about the three refineries we have. Port Harcourt, Warri and Kaduna. And Aliko Dangote got a team after I asked Shell to come and run them for us, and Shell said they wouldn’t.

“I said, please come and take equity. They said no. All right, don’t take equity, come and run it. They said no. Later on I called them. I called the boss of Shell then. Come and tell me what it is. And he gave me four or five reasons.

“He said, well, first of all, we make our major profit from upstream, not from downstream. Downstream we run just to keep our head above water. Two, the refineries are too small, 60,000 barrels per day, 100,000 barrels and I think 120,000 barrels. He said at that time, the average refinery was going for 250,000 barrels per day. Three, he said our refineries are not well maintained.

“Four, he said there was too much corruption around the activities of our refinery and they would not want to get involved in that. And when anybody tells you a thing like that, what will you do? And it was after that that Aliko got a team together and they paid $750 million to take part in PPP, running the refinery. My successor refunded their money,” Obasanjo narrated.

He noted that when he approached Yar’Adua, he was told that the NNPC assured that it could successfully and profitability run the entities, even though he told the then president how impossible it was.

“But I was told not too long ago that since that time, more than $2 billion has been squandered on the refinery and they still will not work. Anybody can tell you. If a company like Shell tells me what they told me, I will believe them,” Obasanjo added.

But in a response by the Chief Corporate Communications Officer of the NNPC, Olufemi Soneye, the NNPC said that the new business model it now runs has helped turn the facilities around.

“We hold President Olusegun Obasanjo in the highest regard as a respected statesman who has made significant contributions to the growth and progress of Nigeria. His dedication to national development and his right to speak on matters of national importance are both deeply respected.

“In response to his recent comments, we would like to respectfully highlight the remarkable transformation of the NNPC. Today, NNPC has evolved into NNPC Limited, a private entity that has transitioned from being a loss-making organisation to becoming a profit-oriented global energy leader.

“Under this new model, NNPC Limited has expanded beyond oil and gas to become an integrated energy company. Our focus is not only on harnessing traditional resources but also on developing cleaner, cheaper, and sustainable energy solutions to meet Nigeria’s growing demands,” Soneye said.

He explained that a notable achievement of the NNPC is the complete rehabilitation of the Port Harcourt Refining Company and Warri Refinery, pointing out that what has been done is not the typical Turnaround Maintenance (TAM) of the past but a comprehensive overhaul designed to meet world-class standards.

“ Similar efforts are underway at the old Port Harcourt Refinery and Kaduna Refinery, ensuring these facilities are enhanced and maintained to global standards for sustainable operation.

“This progress has been driven by the visionary leadership of the NNPC Limited board and the management team led by GCEO Mele Kyari, alongside President Bola Ahmed Tinubu’s transformative policies in the energy sector. Together, they have achieved unprecedented milestones, setting NNPC Limited on a path to redefine energy security for Nigeria while positioning the company as a leader on the global energy stage.

“We extend an invitation to our esteemed former president to join us in this historic journey. His wisdom and experience are invaluable, and we deeply appreciate his insights and guidance, which will always be welcomed and cherished.

“Additionally, we warmly invite President Obasanjo to tour the rehabilitated refineries and witness firsthand the progress made under the leadership of NNPC Limited.

“We remain grateful for his enduring contributions to Nigeria’s development and are committed to building a brighter, more prosperous future for our nation. Together, we can continue to ensure energy security and deliver sustainable value to all Nigerians,” the NNPC stressed.