Nigeria’s three state-owned refineries, Port Harcourt, Warri, and Kaduna, may never operate again, warns Aliko Dangote, President of the Dangote Group.
Speaking during a tour of his private Dangote Refinery in Lekki for the Global CEO Africa program, Dangote noted that since taking over the refineries in 2007, teams haven’t managed to keep them running.
Despite the Nigerian National Petroleum Company Limited (NNPCL) spending approximately USD 18 billion on turnaround maintenance, the plants remain defunct.
Dangote argued that attempting to rehabilitate decades-old refineries using outdated technology is akin to modernising a 40-year-old car; no matter how advanced the engine, the chassis cannot handle it.
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He contrasted this with his privately built 650,000 barrels-per-day facility, currently allocating over 50% of its output to petrol, compared to just 22% from state-owned refineries.
Former President Olusegun Obasanjo, in support of Dangote’s view, recalled Dangote’s failed 2007 attempt to acquire the refineries, citing NNPC’s refusal despite recognition of their dilapidated state. Obasanjo referred to subsequent government spending of over USD 2 billion on non-functional assets.
Industry experts have echoed similar concerns. Economist Kelvin Emmanuel noted that only Dangote’s facility is genuinely producing petrol, while NNPC’s facilities engage in blending, not refining.
Calls for privatisation or scrapping of the non-operational refineries are gaining traction, with manufacturers advocating for modular refineries instead. NNPCL has yet to respond to the critiques about persistent underperformance despite major public investments.
