Former President Olusegun Obasanjo has revealed that his successor, Umaru Musa Yar’Adua, was aware that the Nigerian National Petroleum Corporation (NNPC) lacked the capacity to manage the country’s refineries but still cancelled a $750 million agreement with billionaire industrialist Aliko Dangote.
Obasanjo made the disclosure while reflecting on efforts to reform Nigeria’s struggling refinery sector, stating that Dangote had assembled a consortium that paid $750 million to participate in a public-private partnership arrangement to run the refineries.
According to him, the deal was later reversed under Yar’Adua’s administration, with the funds refunded despite earlier recognition of the refineries’ operational challenges.“I told my successor what transpired. He said NNPC said they wanted the refineries and they can run it,” Obasanjo said.
He added, “I now said but you know they cannot run it.” The former president’s remarks highlight longstanding concerns over the management of Nigeria’s state-owned refineries, which have struggled with inefficiency and repeated rehabilitation efforts over the years.
Obasanjo’s account adds to ongoing debates about missed opportunities to privatise or concession the facilities, as analysts continue to question the viability of government-led refinery operations amid rising investment in private alternatives such as the Dangote Refinery.
