YAR’ADUA rejected DANGOTE’s $750m offer to manage Kaduna and PH refineries in 2007 - OBASANJO

Thursday, January 2, 2025 -Former President Olusegun Obasanjo has disclosed that his successor, Umaru Musa Yar’Adua, rejected a $750 million offer from Aliko Dangote, chairman of Dangote Group, to manage the Port Harcourt and Kaduna refineries in 2007.

Speaking in an interview with Channels Television on Thursday, January 2, Obasanjo discussed the difficulties faced with the Port Harcourt, Warri, and Kaduna refineries during his administration.

The former president revealed that the Nigerian National Petroleum Company (NNPC) Limited was aware of its inability to manage the nation’s refineries effectively but still assured Yar’Adua that it could operate them, leading to the rejection of Dangote’s offer.

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

“Later on, I called them. I called the boss of Shell to come and tell me what the problem was, and he gave me four or five reasons. He (Shell boss) said, first of all, they make a major profit from upstream, not from downstream. He said they run downstream just to keep their head above water.

“Two, our refineries were too small: 60,000 barrels, 100,000 barrels, and I think 120,000 barrels. He said that at that time, the average refinery was going for 250,000 barrels.

“Three, he said our refineries were not well maintained. Four, he said that there was too much corruption around the activities of our refinery and they would not want to get involved in that.

“After that, Aliko got a team together and they paid $750m to take part in PPP (Public–Private Partnership) in running the refineries. My successor refunded their money and I went to my successor and told him what transpired. He said NNPC said they wanted the refineries and they could run it. I now said but you know they cannot run it.”

Obasanjo also criticized the inefficiency surrounding the management of the refineries and highlighted his confidence in Dangote’s ability to manage his privately owned refinery effectively.

“I was told not too long ago that since that time, more than $2 billion have been squandered on the refinery and they still will not work,” he said. “If a company like Shell tells me what they told me, I will believe them. But here we are, over $2 billion squandered, and the refineries still won’t work.”

On December 31, 2024, Mele Kyari, the group chief executive officer (GCEO) of the NNPC, announced that the Warri Refining & Petrochemicals Company (WRPC) in Delta State was now operational. Similarly, on November 26, the NNPC stated that the Port Harcourt refinery had officially commenced crude oil processing.