Former Nigerian President Olusegun Obasanjo has reignited national debate over the future of Nigeria’s oil sector after declaring that the country’s state-owned refineries under the Nigerian National Petroleum Company Limited (NNPC) may never become operational again.
Obasanjo made the remarks during a televised interview, where he expressed deep skepticism about ongoing efforts to revive the refineries located in Port Harcourt, Warri, and Kaduna.
His comments come at a time when the Nigerian government is actively seeking technical partners to manage and rehabilitate the long-troubled facilities.
According to the former president, his position is not new but rather based on years of direct experience dealing with the same infrastructure challenges during his time in office.
He maintained that repeated attempts by successive administrations to fix the refineries have failed to address the fundamental issues undermining their performance.
Obasanjo argued that systemic problems such as poor maintenance culture, entrenched corruption, and inefficient management structures have rendered the refineries incapable of functioning effectively under government control.
He suggested that these challenges have persisted for decades, making meaningful recovery increasingly unlikely.
He further pointed to the structural limitations of the refineries themselves, noting that they are relatively small compared to modern global standards and have suffered years of neglect.
In his view, the facilities have been handled by what he described as “quacks and amateurs,” leading to a steady decline in efficiency and output over time.
Drawing comparisons with other sectors, Obasanjo emphasized that public-private partnerships (PPP) have historically delivered better results in Nigeria.
He cited the success of the Nigeria Liquefied Natural Gas (NLNG) project, where private sector participation plays a dominant role, as evidence that government-led operations alone are often insufficient for large-scale industrial projects.
The former president also revealed that during his tenure, he made several attempts to involve international oil companies in managing the refineries.
He disclosed that he approached Shell, offering both equity participation and management control, but the company declined both proposals.
According to Obasanjo, Shell’s refusal was based on commercial considerations, as the company reportedly generates most of its profits from upstream operations rather than downstream refining.
This, he suggested, further underscores the lack of attractiveness and viability of Nigeria’s refinery system in its current state.
The comments have sparked renewed scrutiny of Nigeria’s refining sector, which has struggled for decades despite billions of dollars spent on rehabilitation and maintenance projects.
Reports indicate that government-owned refineries have consistently operated below capacity or remained completely inactive for extended periods due to technical and operational inefficiencies.
Nigeria, despite being Africa’s largest crude oil producer, has historically depended heavily on imported refined petroleum products due to the poor performance of its domestic refineries.
This paradox has been a major concern for policymakers, economists, and industry stakeholders alike.
Obasanjo’s remarks also come amid growing attention on privately driven alternatives, particularly large-scale projects such as the Dangote Refinery, which represents a shift toward private sector-led refining capacity in Nigeria.
In addition, prominent business figures, including Aliko Dangote, have previously echoed similar concerns about the viability of state-owned refineries, especially following policy reversals that disrupted earlier privatization efforts.
The Nigerian government, through the NNPC, has continued to express optimism about reviving the refineries, with ongoing efforts to secure technical partners and implement rehabilitation programmes.
However, critics argue that without fundamental structural reforms, such initiatives may yield limited results.
Industry analysts note that the debate highlights a broader issue within Nigeria’s public sector—namely, the challenge of managing large-scale infrastructure efficiently under government control.
Many have called for increased private sector involvement, improved transparency, and stronger accountability mechanisms.
At the same time, the issue carries significant economic implications.
Functional refineries could reduce Nigeria’s dependence on fuel imports, stabilize domestic fuel supply, and potentially lower costs for consumers.
Conversely, continued dysfunction may sustain the current cycle of import reliance and subsidy pressures.
Obasanjo’s blunt assessment has therefore reignited conversations about the future direction of Nigeria’s oil and gas industry.
His stance suggests that without a decisive shift in management approach—particularly toward private sector participation—the prospects for reviving the refineries remain uncertain.
While government officials have yet to formally respond to his latest comments, the statement has already intensified public discourse, with many Nigerians divided between skepticism and cautious optimism about ongoing reforms.
Ultimately, the controversy underscores the urgent need for a clear, sustainable strategy to address the long-standing challenges facing Nigeria’s refining sector—one that balances efficiency, transparency, and economic viability in a rapidly evolving global energy landscape.