Aliko Dangote, President of the Dangote Group, has expressed doubts about the functionality of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna despite spending approximately $18 billion on rehabilitation efforts, these refineries remain non-operational.
Dangote likened the refineries’ maintenance to “trying to modernize a car built 40 years ago” and believes they may never work again.
The Federal Government has spent $18 billion on refinery rehabilitation, with $1.4 billion approved for Port Harcourt refinery, $897 million for Warri refinery, and $586 million for Kaduna refinery in 2021.
Dangote questioned the viability of the refineries, citing inefficiencies and waste surrounding their management by the Nigerian National Petroleum Company Limited (NNPCL).
In comparing Dangote refinery with government refineries, the Chairman Dangote Group of Companies, Aliko Dangote said the 650,000-capacity Dangote refinery has over 50% of its output dedicated to Premium Motor Spirit (petrol), whereas government refineries committed only 22% of their production to petrol.
According to the report,there are growing calls for the privatization of government-owned refineries, with the Manufacturers Association of Nigeria suggesting the government sell off the facilities to private operators.
Former President Olusegun Obasanjo also weighed in on the issue, stating that the NNPC was aware it couldn’t operate the refineries and accusing them of institutional corruption.
He advised selling the refineries, saying Nigeria might struggle to sell them even as scrap.
