JUST IN: Tinubu’s Plan Won’t Work – Obasanjo Speaks

JUST IN: Tinubu’s Plan Won’t Work – Obasanjo Speaks

Former President Olusegun Obasanjo has expressed skepticism about the prospects of Nigeria’s oil refineries functioning properly and suggested that President Bola Ahmed Tinubu’s plan to revive them will not succeed.

Obasanjo, who led Nigeria as both a military head of state and a civilian president, shared his views during an exclusive interview with TheCable.

He mentioned that President Tinubu had stated in August that the Port Harcourt petroleum refinery would begin production by December 2023 after completing its rehabilitation contract with an Italian firm, Maire Tecnimont SpA.

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Obasanjo asserted that the refineries would not work as long as the federal government (FG) maintains control over them.

He revealed that during his presidency, he attempted to hand over the refineries to Shell for assistance, but the company declined. According to Obasanjo, Shell provided four reasons for its refusal: it primarily profits from upstream activities, it only engages in downstream activities as a service, Nigeria’s refineries would be unprofitable for them, and there is rampant corruption in refineries.

Despite his efforts to attract Shell, Obasanjo said he nearly gave up hope on the refineries until a potential solution emerged. Business magnates Aliko Dangote and Femi Otedola expressed interest in purchasing a 51% stake in the Port Harcourt and Kaduna refineries, offering $761 million and paying in two installments. However, President Umaru Yar’Adua canceled the sale and returned the refineries to the Nigerian National Petroleum Company Limited (NNPCL).

Obasanjo’s comments highlight the long-standing challenges facing Nigeria’s oil refineries, including issues of mismanagement, corruption, and insufficient investment in maintenance and upgrades. Achieving a functional and efficient domestic refining sector remains a significant challenge for the country.