Former President Olusegun Obasanjo has said the Nigerian National Petroleum Company Limited (NNPC Ltd) was the reason his successor, Late Umaru Musa Yar’Adua rejected a $750 million offer from Aliko Dangote, chairman of Dangote Group, to manage the Port Harcourt and Kaduna refineries in 2007.
The former president revealed this on Thursday in an interview with Channels Television.
Obasanjo said the NNPC Limited was aware of its limitations in managing the nation’s refineries but still informed Yar’Adua that the oil company could operate the refineries – leading to his successor rejecting Dangote’s offer.
The ex-president also said he sought external help to rehabilitate and manage the facilities but faced resistance.
“When I was president, I wanted to do something about the three refineries we have: Port Harcourt, Warri, and Kaduna. Aliko got a team together after I asked Shell to come and run it for us. And Shell said they wouldn’t,” Obasanjo said.
“Later on, I called them. I called the boss of Shell to come and tell me what the problem was and he gave me four or five reasons.
“He (Shell boss) said, first of all, they make a major profit from upstream, not from downstream. He said they run downstream just to keep their head above water.
“Two, our refineries were too small: 60,000 barrels, 100,000 barrels and I think 120,000 barrels. He said that at that time, the average refinery was going for 250,000 barrels.
“Three, he said our refineries were not well maintained. Four, he said that there was too much corruption around the activities of our refinery and they would not want to get involved in that.
“After that, Aliko got a team together and they paid $750m to take part in PPP (Public–Private Partnership) in running the refineries.
“My successor refunded their money and I went to my successor and told him what transpired.
“He said NNPC said they wanted the refineries and they could run it. I now said but you know they cannot run it.”
Reacting to the former president’s statements, NNPCL’s Chief Corporate Communications Officer, Mr. Olufemi Soneye in a statement issued on Thursday, January 2, 2025, reaffirmed the company’s commitment to transparency.
He extended an invitation to Obasanjo to embark on a tour of the rehabilitated Port Harcourt Refinery, urging him to witness firsthand the progress made under its new management.
“We respectfully invite President Obasanjo to tour the rehabilitated refineries to see the progress achieved. His wisdom and experience are invaluable, and we welcome his insights,” Soneye stated.
He clarified that the Port Harcourt Refinery underwent a comprehensive overhaul rather than a traditional Turnaround Maintenance (TAM).
“This was a full-scale rehabilitation designed to meet world-class standards,” Soneye said, adding that similar efforts are ongoing at the Kaduna Refinery and the old Port Harcourt Refinery.
Soneye highlighted NNPCL’s transition from a government corporation to a profit-driven global energy company.
“This transformation has shifted us from being a loss-making organization to an integrated energy firm focused on profitability and sustainability,” he said.
Soneye also dismissed reports that NNPCL plans to halt crude oil supply to the Dangote Refinery, labeling them as false.
“There’s no need to respond to falsehood,” he remarked, emphasizing NNPCL’s focus on ensuring energy security for Nigeria.
