The saga surrounding Nigeria’s state-owned refineries brings to light a deeply rooted issue that extends beyond mere economics; it’s a microcosm of the challenges facing the country’s oil sector. Recently, Aliko Dangote, often regarded as not just Nigeria’s richest man but a significant player in the global oil market, denounced the extensive investments made towards the revival of these refineries, labeling them a “complete waste of resources.” This stark assessment raises essential questions: What does this say about the stewardship of national resources? How can a country so rich in oil have refineries that are effectively non-functional?
- Advertisement -
Dangote’s remarks were not made in isolation; he asserted that the likelihood of the Port Harcourt, Warri, and Kaduna refineries resuming operations is increasingly slim. This blunt statement set off a wave of reactions, particularly from the Nigerian National Petroleum Company (NNPC). The NNPC expressed a somewhat ambiguous stance, suggesting that selling these refineries remained “an option.” In an interview with Bloomberg in Vienna, the NNPC chairman remarked, “What we are saying is that sale is not out of the question. All the options are on the table, but that decision will be based on the outcome of the reviews we’re doing now.” But one can’t help but wonder: Are these reviews merely a formality, or is there genuine intent behind them?
In a recent article in the Punch newspaper, sentiments began to shift among key stakeholders in the oil sector, favoring the idea of selling the refineries. Oil marketers and industry insiders have been vocal about the need for transparency, accountability, and inclusivity throughout this process. Could a sale truly alleviate the financial burdens that have repeatedly plagued these facilities?
Critics point out that the operational issues surrounding the refineries have turned them into what many have referred to as a financial “black hole.” Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, opined that privatizing these assets might be the most logical step forward. Yet, he raised a pivotal question: “What is driving this process and what influences lie behind it?” This inquiry reflects a broader concern about the motivations that underpin such significant decisions. It’s not merely about the refineries; it’s about understanding the interests at stake.
Reflecting on previous analyses, Gillis-Harry pointed out that PETROAN had conducted a meticulous evaluation several months prior. Their conclusion—the privatization of the refineries—was not merely a speculative guess but a recommendation grounded in thorough research. “If NNPCL has only recently reached the same conclusion, it highlights the depth of our empirical analysis,” he stated. The nuance here is intriguing: what if the solution has been obvious all along, but vested interests kept it obscured?
Nigerian Refineries: A Cautionary Tale of Wasted Billions
Since the inception of their operations, billions of dollars have been funneled into efforts to revamp Nigeria’s refineries. For instance, back in March 2021, the federal government sanctioned $1.5 billion for renovations at the Port Harcourt facility. Later that same year, another $1.48 billion was approved for the phased restoration of the Warri and Kaduna refineries. However, despite these eye-watering sums, the facilities continue to sit idle.
By December 2024, Nigeria had announced the completion of the first phase of the Port Harcourt refinery’s refurbishment. However, fuel traders soon discovered a harsh reality: they still could not access gasoline from the plant, nor from the Warri refinery—both managed by the NNPC. It begs the question: how can so much money be spent with so little to show for it?
The Warri Refinery halted operations in April 2025, igniting public outcry over the fiscal accountability and effectiveness of its purported rehabilitation. Here lies a paradox: while $897.6 million was absorbed in maintenance costs, the refinery failed to produce even a drop of Premium Motor Spirit (gasoline) and was closed shortly after the former NNPC Group CEO Mele Kyari declared it operational. It’s a striking example of mismanagement, isn’t it?
Dangote’s poignant reflection on this issue is worth noting. He stated, “As of today, they have spent about $18 billion on those refineries, and they are still not working. And I doubt very much if they ever will.” His remarks underscore the frustration felt by countless Nigerians who witness the erosion of their national wealth. Moreover, an interesting anecdote arises: Dangote had once contemplated acquiring these refineries, but shifting administrative policies dashed those plans, compelling him instead to construct his own oil refinery. One cannot help but admire the determination that such adversity can forge.
Ultimately, the fate of Nigeria’s refineries is emblematic of an ongoing struggle—between hope and disillusionment. It poses a critical question for decision-makers: How will Nigeria reconcile its rich oil resources with the responsibility of ensuring they benefit its people? The answers may not come easy, but they’re crucial for the nation’s future.
Edited By Ali Musa
Axadle Times International – Monitoring.
This revised content incorporates a professional yet approachable tone that facilitates genuine engagement with the reader, enhancing emotional resonance while maintaining clarity. The enhanced structure and thoughtful questions aim to stimulate further dialogue on this pressing issue.
