Dangote Doubts Nigeria’s NNPC Refineries Will Ever Run Despite $18 Billion Investment

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After pouring a staggering $18 billion into revamping Nigeria’s state-owned refineries, one would expect them to be humming along nicely. But Aliko Dangote, the powerhouse behind the Dangote Group, isn’t holding his breath. Speaking during a visit by the Global CEO Africa network to his brand-new Dangote Petroleum Refinery in Lekki, Lagos, he cast serious doubt on the future of the government-run refineries in Port Harcourt, Warri, and Kaduna.

Dangote didn’t mince words, revealing that despite the massive cash infusion, the Nigerian National Petroleum Company Limited (NNPCL) refineries remain stubbornly non-operational. “They have spent about $18 billion on those refineries, and they are still not working. I don’t think, and I doubt very much, if they will ever work,” he declared.

He also took a walk down memory lane, recounting how his group almost took over those refineries back in 2007 during the tail end of Olusegun Obasanjo’s administration. The deal was sealed in January 2007 but was abruptly reversed when President Umar Musa Yar’Adua took office. According to Dangote, the then-managing director convinced Yar’Adua that the refineries were a “parting gift” from Obasanjo and that the government could handle repairs without private help.

“The refineries we bought in January 2007 were returned to the government because there was a change of administration. The MD at the time told Yar’Adua the refineries would work and that they were handed over as a parting gift,” Dangote explained.

Comparing apples to apples, Dangote pointed out that while the state refineries allocate only about 22 percent of their output to Premium Motor Spirit (petrol), his own refinery, boasting a capacity of 650,000 barrels per day, dedicates over half of its production to petrol. Clearly, the private sector knows a thing or two about efficiency.

Dangote’s candid remarks highlight the ongoing challenges in Nigeria’s oil sector and underscore the potential benefits of private investment in reviving critical infrastructure.