Alhaji Aliko Dangote, President of the Dangote Group, has expressed skepticism about the future operation of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna. He stated that these facilities have consumed up to $18 billion yet remain non-functional.
Speaking during a visit from members of the Global CEO Africa at the Dangote Petroleum Refinery in Lekki, Dangote highlighted the contrast between his refinery, which has a capacity of 650,000 barrels per day, and the struggling state refineries. According to him, while his refinery dedicates over 50% of its output to petrol, government-owned refineries only managed 22%.
Dangote recounted his previous attempt to acquire the state refineries, which he returned to the government after assurances of their viability. He criticized the idea of modernizing outdated facilities, comparing it to trying to retrofit a 40-year-old car with new technology.
His comments align with former President Olusegun Obasanjo’s earlier statements regarding the ineffectiveness of the refineries and the mismanagement by the Nigerian National Petroleum Company (NNPC). Calls for privatization have increased following the recent shutdowns of the Port Harcourt and Warri refineries, which occurred shortly after being declared operational.
Despite significant financial allocations for rehabilitation, including $1.4 billion for Port Harcourt, the facilities continue to be nonproductive. The NNPC has not responded to inquiries regarding the state of the refineries.
