Dangote: After $18bn, Nigeria’s Refineries Still Don’t Work — And May Never Work
Aliko Dangote, president of the Dangote Group, says he doubts the Port Harcourt, Warri, and Kaduna refineries owned by the Nigerian National Petroleum Company (NNPC) Limited will ever work again, despite an estimated $18 billion spent on rehabilitation efforts.
Dangote made the statement on Thursday while hosting members of the Global CEO Africa from the Lagos Business School at the Dangote Petroleum Refinery in Lekki, Lagos.
Recalling his attempt to acquire the refineries in 2007, the billionaire said his earlier bid was blocked under the administration of late President Umaru Musa Yar’Adua, who was advised that the refineries would be functional.
“The refineries that we bought before, which were owned by Nigeria, were doing about 22 per cent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,” he said.
“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 $18 billion on those refineries, and they are still not working. I don’t think, and I doubt very much if they will work.”
He likened the turnaround maintenance of the ageing refineries to upgrading obsolete technology.
“Even if you change the engine, the body will not be able to take the shock of that new technology engine,” he said.
Meanwhile, NNPC’s GCEO, Bayo Ojulari, admitted the rehabilitation process has become more complex and disclosed the company is considering selling the refineries.
