Obasanjo Reveals How Yar’Adua Rejected Dangote’s $750m Bid to Manage Refineries

Former President Olusegun Obasanjo has disclosed how late President Umar Musa Yar’Adua rejected Alhaji Aliko Dangote’s offer to manage Nigeria’s refineries through a public-private partnership (PPP).

In an interview with Channels TV, Obasanjo recounted efforts during his presidency to rehabilitate and manage the Port Harcourt, Warri, and Kaduna refineries, including seeking external expertise. After Shell declined to operate the refineries, Dangote assembled a team and paid $750 million to run them under a PPP arrangement. However, Yar’Adua refunded the money, opting for the Nigerian National Petroleum Corporation (NNPC) to manage the facilities instead.

Obasanjo expressed skepticism about the NNPC’s efficiency, stating that since then, over $2 billion has been spent on the refineries without success. He contrasted this with Dangote’s ability to effectively manage his privately-owned refinery.

Citing reasons for Shell’s refusal, Obasanjo said the company highlighted inefficiencies, corruption, and the small scale of the refineries as significant barriers. He emphasized the continued inefficiency in government-managed refineries, praising Dangote’s capability to ensure functionality and profitability in his operations.