Former Nigerian President Olusegun Obasanjo has disclosed that the Nigerian National Petroleum Corporation (NNPC), now rebranded as NNPC Limited (NNPCL), declined a $750 million proposal from businessman Aliko Dangote to manage the nation’s refineries.
Obasanjo recounted that during his administration, he sought external expertise to rehabilitate and operate Nigeria’s ailing refineries. After Shell declined the offer due to concerns over corruption and operational inefficiencies, Dangote assembled a team and offered $750 million for a public-private partnership to manage the facilities.
Despite acknowledging its limitations in effectively running the refineries, NNPC rejected Dangote’s proposal, asserting its capability to manage the operations. Obasanjo expressed frustration over this decision, noting that the refineries continued to underperform, leading to increased fuel importation and economic losses.
This revelation comes amid ongoing discussions about Nigeria’s energy sector and the role of private investment in revitalising critical infrastructure. The Dangote Refinery, a separate venture by Aliko Dangote, which has become Africa’s largest oil refinery, with a capacity of 650,000 barrels per day. And aims to reduce Nigeria’s dependence on imported petroleum with the recent re-commencement of the Port-Harcourt and Warri Refineries by NNPCL.
Obasanjo’s account underscores the challenges Nigeria has faced in managing its oil resources and the missed opportunities for public-private partnerships that could have enhanced efficiency and profitability in the sector.