Former President Olusegun Obasanjo revealed that Shell declined to invest in Nigerian refineries due to concerns over corruption and inadequate maintenance.
He made this statement while discussing his previous attempts to enhance Nigeria’s refining sector in an interview with the Financial Times.
He criticised the management of state-owned refineries. “When I was President, I invited Shell and asked them to take equity participation and run our refineries. They refused, citing poor maintenance and corruption,” he said.
“They said there’s too much corruption with the way our refinery is run and maintained. They didn’t want to get involved in such a mess,” he added.
Obasanjo also expressed scepticism about repeated promises to rehabilitate state-owned refineries.
He questioned, “How many times have they told us that? And at what price?” He criticised the lack of progress, stating, “Those problems, as far as the government refineries are concerned, have never gone. They have even increased.”
Nigerian state-owned refineries are plagued with the challenge of missed deadlines.
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On March 15, Mele Kyari, group chief executive officer of Nigerian National Petroleum Company (NNPC), promised that some of the refineries would start production by the end of March.
However, this deadline was not met. Kyari has now set a new timeline, stating, “Specific to NNPC refineries, it is impossible to have the Kaduna refinery come to operation before December. However, the Port Harcourt refinery is expected to commence production in early August this year.”
Obasanjo also raised alarms about potential sabotage of the Dangote Petroleum Refinery, suggesting that those benefiting from Nigeria’s fuel importation industry might try to undermine its success.
“Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria,” he said.
“If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated.”
He addressed concerns that international oil companies (IOCs) could be deliberately obstructing the refinery’s efforts.
The Dangote refinery, owned by Aliko Dangote, has been at the centre of controversy, with tussles between the refinery, International Oil Companies (IOCs) and the Nigerian Nation Petroleum.
Devakumar Edwin, Vice President of Dangote Industries, has previously raised concerns about international oil companies selling crude at inflated prices, complicating the refinery’s procurement efforts.
Meanwhile, Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has accused Dangote of exhibiting monopolistic behaviour, a claim disputed by the Dangote Group.
In a bid to resolve the dispute, President Bola Ahmed Tinubu directed the Nigerian National Petroleum Company Limited to supply crude oil to local refineries, including Dangote’s, in Nigerian Naira.
