NNPCL tackles Obasanjo over alleged $2bn refineries restore fund

Former President Olusegun Obasanjo has revealed new particulars about Nigeria’s refineries’ woes, recounting failed efforts to privatise the vegetation and the following alleged monetary losses of about $2bn by the amenities underneath authorities administration.

Obasanjo disclosed this on Thursday because the Nigerian Nationwide Petroleum Firm Restricted beckoned the ex-President to go to the not too long ago revamped refineries for a tour.

The previous President stated his successor, Umaru Musa Yar’Adua, rejected a $750m provide from Aliko Dangote, Chairman of Dangote Group, to handle the Port Harcourt and Kaduna refineries in 2007.

Obasanjo spoke in an interview with Channels Tv, on Thursday, highlighting the challenges confronted with Port Harcourt, Warri, and Kaduna refineries throughout his presidency.

The previous president stated the NNPCL was conscious of its limitations in managing the nation’s refineries however nonetheless knowledgeable Yar’Adua that the oil firm may function the refineries — resulting in his successor rejecting Dangote’s provide.

He stated corporations approached by the federal government to accumulate fairness within the refinery, expressed issues about corruption impeding its operations.

“After I was President, I wished to do one thing in regards to the three refineries now we have: Port Harcourt, Warri, and Kaduna. Aliko received a staff collectively after I requested Shell to return and run it for us. And Shell stated they wouldn’t. I stated, please come and take fairness, they stated no. I stated okay, don’t take fairness, come and run it, they stated no.

“In a while, I referred to as them. I referred to as the boss of Shell to return and inform me what the issue was and he gave me 4 or 5 causes. He stated, initially, they make a serious revenue from upstream, not from downstream. He stated they run downstream simply to maintain their head above water.

“Two, our refineries have been too small: 60,000 barrels, 100,000 barrels, and I feel 120,000 barrels. He stated that at the moment, the common refinery was going for 250,000 barrels.

“Three, he stated our refineries weren’t properly maintained. Fourth, he stated that there was an excessive amount of corruption across the actions of our refinery and they might not wish to become involved in that.”

Obasanjo shared that after Shell’s refusal, Africa’s richest man, Aliko Dangote, assembled a staff and paid $750m to function the refineries by way of a public-private partnership.

“Aliko received a staff collectively and so they paid $750m to participate in PPP (Public–Personal Partnership) in operating the refineries. My successor refunded their cash, and I went to my successor; I instructed him what transpired; he stated NNPC stated they wished the refinery and so they may run it, and I stated, however you already know they can not run it,” Obasanjo said.

The previous President expressed confidence in Dangote’s skill to handle his privately owned refinery successfully, contrasting it with the federal government’s inefficiency.

Obasanjo additionally expressed frustration over the mismanagement of the refineries, including that regardless of the quantity spent on them since 2007 no outcomes have been made.

“I used to be instructed not too way back that since that point, greater than $2bn have been squandered on the refinery and so they nonetheless won’t work.

“If an organization like Shell tells me what they instructed me, I’ll imagine them. If anyone tells you now that it’s working, why are they now with Aliko? And Aliko will make his refinery work; not solely make it work, he’ll make it ship.”

On December 31, 2024, the Group Chief Govt Officer of the NNPCL, Mele Kyari, stated the Warri Refining & Petrochemical Firm in Delta State had commenced operations.

On November 26, the NNPC stated the Port Harcourt refinery had formally commenced crude oil processing.

Obasanjo concluded with a Yoruba proverb, evaluating inflated claims in regards to the refineries’ efficiency to a farmer who planted 100 heaps of yam however falsely claimed to have planted 200.

“They are saying after he has harvested 100 heaps of yam, he may even have 100 heaps of lies. You understand what which means,” he stated.

NNPCL invitations Obasanjo

Nevertheless, responding to the declare, the NNPCL spokesperson, Femi Soneye, prolonged an invite to Obasanjo for a sightseeing tour of the Port Harcourt refinery to confirm its operational standing.

Soneye in an announcement, stated, “We lengthen an open invitation to President Obasanjo for a tour of the rehabilitated refineries to witness firsthand the progress made underneath the brand new NNPC Restricted.”

Giving additional particulars, Soneye defined that the NNPCL didn’t solely perform turnaround upkeep on the plant however launched into a whole overhaul of the refinery to satisfy world-class requirements.

He stated, “As a part of this transformation, NNPC Restricted has gone past oil and fuel to turn into an built-in vitality firm. Certainly one of our notable achievements is the whole rehabilitation of the Port Harcourt Refining Firm and Warri Refinery.

“This course of was not merely the Turnaround Upkeep of the previous however a full-scale overhaul designed to satisfy world-class requirements. Equally, we’re at the moment conducting the identical complete rehabilitation of the outdated Port Harcourt Refinery and Kaduna Refinery.”

He added that NNPCL has developed from being a authorities company to a non-public entity with restricted legal responsibility.

He stated owing to the transition, NNPCL has additionally moved on from being a loss-making group to a profit-driven worldwide vitality agency.

“Underneath this new mannequin, NNPC Restricted has expanded past oil and fuel to turn into an built-in vitality firm. Our focus just isn’t solely on harnessing conventional sources but additionally on creating cleaner, cheaper, and sustainable vitality options to satisfy Nigeria’s rising calls for,” the assertion concluded.