Dangote’s $750M Offer to Manage Refineries Was Rejected by Yar’Adua – Obasanjo

Former President Olusegun Obasanjo has disclosed that his successor, the late Umaru Musa Yar’Adua, rejected a $750 million offer by Aliko Dangote, chairman of Dangote Group, to manage Nigeria’s Port Harcourt and Kaduna refineries in 2007.

Obasanjo revealed this during an interview where he reflected on the challenges of operating the nation’s three refineries—Port Harcourt, Warri, and Kaduna—during his tenure.

He said the Nigerian National Petroleum Company (NNPC) Limited acknowledged its limitations in managing the refineries but assured Yar’Adua of its capability to operate them, leading to the rejection of Dangote’s proposal.

“When I was president, I wanted to do something about the three refineries we have: Port Harcourt, Warri, and Kaduna,” Obasanjo said. “Aliko got a team together after I asked Shell to come and run it for us. And Shell said they wouldn’t.”

Shell’s Reservations

Obasanjo narrated his engagement with Shell to manage the refineries, which was met with resistance for multiple reasons.

“Shell’s boss told me four or five reasons they wouldn’t manage the refineries. First, they make major profits from upstream, not downstream. Second, our refineries were too small—averaging 60,000 to 120,000 barrels per day, compared to the standard 250,000 barrels.

“Third, the refineries were poorly maintained. Lastly, there was too much corruption around their operations, which Shell didn’t want to be involved in,” Obasanjo explained.

Dangote’s Proposal

Following Shell’s refusal, Obasanjo said Dangote organized a team and committed $750 million to a Public-Private Partnership (PPP) to run the refineries. However, the incoming Yar’Adua administration refunded the money and decided to let NNPC manage the facilities instead.

“I told my successor what transpired. He said NNPC assured him they could run the refineries, but I told him they couldn’t,” Obasanjo said.

Billions Squandered, No Results

Obasanjo expressed frustration over the inefficiency and mismanagement that followed. He said more than $2 billion had been spent on the refineries since 2007, yet they remain non-functional.

“If a company like Shell tells me their concerns, I believe them. Here we are, over $2 billion squandered, and the refineries still won’t work,” he lamented.

Hope for the Future?

Contrasting the government’s inefficiency, Obasanjo said he believes Dangote’s private refinery has the capacity to operate efficiently. His confidence comes as the Warri Refining & Petrochemicals Company (WRPC) in Delta state reportedly resumed operations under NNPC management.

However, Obasanjo’s comments reignite questions about public-private partnerships in managing Nigeria’s critical infrastructure.