Speaking during an interview on Sony Irabor Live aired on Saturday night, Obasanjo emphasised that public-private partnerships remain a more effective model for managing such projects.
He pointed to the success of the Nigeria Liquefied Natural Gas, where private investors hold the majority stake, as an example of what works.
According to him, several government-run projects, including the railways and national shipping company, have struggled over time, adding that the same issues affect the refineries under the NNPC.
Obasanjo also recounted his attempts while in office to involve Shell in managing the refineries, but the company declined both equity participation and operational control.
He explained that Shell officials cited multiple concerns, including low profitability in downstream operations, the relatively small capacity of Nigeria’s refineries compared to global standards, poor maintenance culture, and widespread corruption within the system.
The former president revealed that he later welcomed an offer from Aliko Dangote, who proposed investing $750 million for a majority stake in two of the refineries, a deal that was eventually completed.
However, he said the arrangement was later reversed by his successor, Umaru Musa Yar’Adua, following pressure from the NNPC.
Obasanjo maintained that the decision to cancel the deal was a setback, warning at the time that the refineries could eventually lose value and be sold off as scrap.
He further noted that significant funds—reportedly about $16 billion—have been spent on the facilities over the years, an amount close to what Dangote used to build his privately owned refinery, widely regarded as Africa’s largest.
Recent updates from the NNPC, led by its Group Chief Executive Officer Bayo Ojulari, indicate that the company is still working towards bringing in technical partners, with a target set for June 2026.
Ojulari has acknowledged that despite previous rehabilitation efforts, the refineries are still operating below international standards and struggle to compete commercially, particularly against privately owned alternatives like the Dangote refinery.
Dangote himself has also stated that his decision to build a refinery was influenced by the earlier reversal of the sale agreement and has similarly questioned the long-term viability of the government-owned facilities.
As of now, the NNPC has not issued an official response to Obasanjo’s latest remarks.
