Obasanjo Explains How NNPC Blocked Dangote’s Plan to Purchase Nigeria’s Refineries
- Former President Olusegun Obasanjo has explained how NNPC frustrated Dangote’s plan to purchase Nigeria’s refineries
- Obasanjo said Dangote assembled a team and offered $750 million to run the facilities
- He told his predecessor to refund the money, claiming that NNPC promised to run the plants
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Ex-President Olusegun Obasanjo explained how the formal management of the Nigerian National Petroleum Corporation (NNPC) thwarted Aliko Dangote’s $750 million offer to run Nigeria’s refineries.
The former Nigerian leader disclosed this in a television interview, outlining Nigeria’s refineries' challenges.
Source: Getty Images
Yar’Adua refunds Dangote’s funds
According to him, the company rejected Dangote's offer despite NNPC's awareness of its inability to manage the refineries.
Obasanjo said Dangote constituted a team and paid $750 million to participate in a public-private partnership to run the refineries, saying his predecessor, Umar Musa Yar’Adua, refunded the money.
He said Yar’Adua claimed that NNPC said they could manage the refineries.
The ex-Nigeria President questioned why NNPC is now working with Dangote, saying that Dangote will ensure his refinery delivers.
Legit.ng reported that the NNPC Group Chief Executive Officer, Mele Kyari, announced on December 31, 2024, that the Warri refinery has commenced production.
The development comes after the Port Harcourt refinery commenced operations on November 26, 2024.
Obasanjo approached Shell to run Nigeria’s refineries
According to Obasanjo, he sought external funding to rehabilitate and manage the refineries but was resisted.
He disclosed that he asked Shell to run Nigeria's refineries, but the company declined, citing four reasons.
He stated that it was after Shell refused to take over the refineries that Dangote assembled a team to purchase them, saying that since then, Nigeria has spent over $2 billion to repair the facilities.
NNPC may reduce crude supply to Dangote Refinery
Legit.ng earlier reported that the NNPC might slash crude oil supply to Dangote Refinery from 300,000 barrels daily.
The cut was expected to begin as two other Nigerian refineries had started production.
The NNPC manages the Port Harcourt and Warri refineries, which operate at a combined capacity of 135,000 barrels per day.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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