Dangote Gives Reasons Port Harcourt, Warri, Kaduna Refineries May Never Work Again

• Nigerian Billionaire, Aliko Dangote, has told the story of how he purchased the NNPCL refineries nearly twenty years ago
• He also shared reasons why the refineries may never function again, no matter the amount of money invested by the government
• Meanwhile, Dangote Refinery and the NNPC are still in a price war, each trying to offer Nigerians the best prices possible

Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.

The Nigerian National Petroleum Corporation Limited (NNPCL) has been embroiled in a huge scandal after its attempt to revamp the three refineries failed.

Reports confirm that over $18 billion was allocated and released for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.

Despite spending this huge sum, the refineries could still not produce any fuel, leading to calls for an investigation.

President Bola Tinubu changed the entire management team, bringing in Bayo Ojulari as the new GCEO and MD.

As a result, several past executives of NNPCL have had to meet with the Economic and Financial Crimes Commission (EFCC) for questioning.

According to the President of the Dangote Group, Alhaji Aliko Dangote, there is a high chance that all three may never work again.

Dangote shares his history with NNPC refineries

Speaking on Thursday while hosting members of the Global CEO Africa from the Lagos Business School, Dangote revealed that he was challenged to build the 650,000 capacity refinery after the federal government upturned his plans to acquire the NNPC refineries.

He narrated how he purchased the refineries under the administration of the then President Olusegun Obasanjo, and had to return them to the government under the next administration led by President Umar Yar’Adua.

He said:

“We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government. And the managing director at that time convinced Yar’adua that the refineries would work.

"They said they just gave them to us as a parting gift or so. And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don’t think, and I doubt very much if they will work.”

Why the three NNPC refineries may never work again

According to the PUNCH, Dangote explained that trying to rehabilitate the refineries would amount to trying to modernize a car built 40 years ago, when it has long been overtaken by technological advancements.

He said:

“Even if you change the engine, the body will not be able to take the shock of that new technology engine.”

Recall that two of the three refineries were declared operational after spending billions of dollars on them, but ended up shut down after a few months.

The Warri Refinery remained operational for only one month after its re-commissioning before it was shut down on January 25, 2025, due to safety issues.

Even before the latest expenditure, the government has spent billions over the years. In 2021, NNPC gulped N100 billion on refinery rehabilitation, plus N8.33 billion monthly expenses.

There was also a turnaround maintenance that gulped over $396 million between 2013 and 2017.

Former President Obasanjo declares NNPC refineries dormant

In related news, Former President Olusegun Obasanjo had similarly declared that the NNPC refineries could not be revamped.

Obasanjo remarked that there were multiple expert opinions from international oil companies like Shell, confirming that the refineries could not be revamped.

He added that the only chance to have achieved it was back in 2007 when Aliko Dangote paid $750 million to take over the refinery, but the transaction was upturned by Yar’ Yar'Adua.

Source: Legit.ng