Former Olusegun Obasanjo has called for the prosecution of officials from the Nigerian National Petroleum Corporation (NNPC), accusing them of mishandling resources and perpetuating corruption, in a scathing critique of Nigeria’s handling of its four owned public refineries.
Obasanjo who spoke at his residence in Abeokuta, Ogun State, while receiving six members of the House of Representatives, recounted his attempts to involve international oil giant Shell in the operation of Nigeria’s refineries.
Despite offering Shell a 20 percent stake in the refineries or the opportunity to manage them directly, Obasanjo was met with resistance.
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He said Shell cited several reasons for declining the offer, including the relatively small size of the refineries, which are significantly smaller than other global operations, and concerns over the potential for financial losses.
Obasanjo detailed Shell’s reluctance to get involved, noting that the company preferred to avoid the risks associated with Nigeria’s refinery management and corruption issues.
“Shell said the way our refineries were managed and serviced was not up to standard,” Obasanjo said. “Moreover, they highlighted the pervasive corruption and the mismanagement that plagued our refineries.”
Despite these warnings, Obasanjo lamented that his successor, late president Umaru Musa Yar’Adua, chose to ignore an opportunity to rejuvenate the refineries.
According to Obasanjo, the Yar’Adua administration rejected a consortium of investors, who had proposed $750 million for Nigerian refineries.
substantial investment offer of $750 million, which could have addressed the refineries’ issues.
Obasanjo expressed frustration over the continued failure of the refineries and the mismanagement of funds.
He cited a staggering $1.5 billion that had been spent on the refineries without achieving any significant improvement. “The refineries are in such poor condition that they are almost worthless now,” he said. “You wouldn’t be able to sell them for even $200 million.”
Criticizing the NNPC’s role in the debacle, Obasanjo asserted that the organisation’s officials should be held accountable.
“NNPC knew the refineries would not work, but they knew that they could eat and carry on with the corruption that was going on in these refineries. In a civilized society, those responsible for this mess would be in jail,” he declared.
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He expanded his criticism to other failed national enterprises, such as the National Shipping Line and Nigeria Airways, questioning why Nigeria continues to face such systemic failures.
On March 15, Mele Kyari, group chief executive officer (GCEO) of NNPC Limited, had said the refinery would begin production by the end of March, but this has not happened.
Setting a new deadline, the NNPC GCEO said the refinery would begin operations in early August.
“Specific to NNPC refineries, we have spoken to a number of your committees, that it is impossible to have the Kaduna refinery come to operation before December, it will get to December, both Warri and Kaduna; but that of Portharcourt will commence production early August this year,” he said.
