NNPC refineries will never work, former President Olusegun Obasanjo has reiterated, insisting that Nigeria’s state-owned refineries cannot function sustainably under current management structures. The comment on NNPC refineries was made while addressing longstanding concerns over repeated rehabilitation efforts and the persistent failure to restore full operations at the Port Harcourt, Warri, and Kaduna refineries.
Nigeria operates four state-owned refineries under the Nigerian National Petroleum Company Limited (NNPCL), originally designed to reduce dependence on imported petroleum products. Over the years, these refineries have undergone multiple rehabilitation and turnaround maintenance projects, yet production levels have remained largely inactive or inconsistent.
The debate over the viability of NNPC refineries has continued for decades, with policymakers, industry experts, and former government officials divided on whether full privatisation or private sector management is necessary for operational recovery.
Obasanjo maintained that NNPC refineries will never work under government control, recalling earlier efforts during his administration to transfer their management to international oil companies. He stated that Shell, approached at the time, declined to take over the facilities, citing concerns about viability and operational structure.
He further explained that private investors, including notable Nigerian industrialists, had previously shown interest in the refineries, but the arrangements were not sustained under subsequent policy decisions.
Obasanjo also referenced repeated turnaround maintenance projects carried out over the years, noting that despite significant financial commitments, the refineries have not achieved stable or continuous production.
Reports over time indicate that substantial public funds have been spent on rehabilitation efforts without corresponding output, contributing to Nigeria’s continued reliance on imported refined petroleum products. His position reinforces the view that NNPC refineries will never work effectively without fundamental structural changes in ownership and management.
The continued debate over NNPC refineries reflects broader concerns about the efficiency of state-owned infrastructure in Nigeria’s oil and gas sector. It also highlights ongoing policy discussions around privatisation, deregulation, and private sector participation in refining operations.
For policymakers, the issue remains central to efforts aimed at improving domestic refining capacity and reducing fuel import dependency. The outcome of ongoing reforms may determine the future viability of NNPC refineries in the national energy landscape.
