Former President Olusegun Obasanjo has reignited debate over Nigeria’s struggling oil infrastructure, declaring that the country’s major state-owned refineries will never function effectively under current conditions.

Speaking during an interview aired on Sony Irabor Live, Obasanjo expressed deep skepticism about the future of the Port Harcourt, Warri, and Kaduna refineries. His remarks come as the Nigerian National Petroleum Company Limited (NNPCL) continues efforts to secure technical partners to manage and revamp the facilities.

The former president argued that structural inefficiencies, poor maintenance culture, and systemic corruption have made the refineries nearly impossible to operate successfully under government control.

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Obasanjo emphasized that his views are based on past experience during his presidency, revealing that he had actively sought private sector participation to salvage the refineries. He cited the success of the Nigeria Liquefied Natural Gas (NLNG) project as proof that public-private partnerships can deliver results in Nigeria’s energy sector.

According to him, NLNG has thrived because the private sector holds a majority stake, while the government retains a minority share. He contrasted this with the state-managed refineries, which he said have consistently failed due to mismanagement.

In a striking revelation, Obasanjo disclosed that he personally appealed to Shell to take over operations of the refineries. He even offered the company equity participation, but the proposal was declined.

Explaining Shell’s refusal, Obasanjo said the company highlighted several concerns. These included limited profitability in downstream operations, the relatively small capacity of Nigeria’s refineries compared to global standards, and poor maintenance practices. He also noted that concerns about corruption within the system discouraged foreign investment.

The former president further recounted a pivotal moment when Aliko Dangote proposed investing $750 million to acquire a 51 percent stake in two of the refineries. Obasanjo described the offer as a breakthrough opportunity and confirmed that the payment was made.

However, the deal was later reversed by his successor, Umaru Musa Yar’Adua, following pressure from the NNPC at the time. Obasanjo expressed disappointment over the decision, warning that the refineries would deteriorate further without private sector management.

He also pointed out that Nigeria has reportedly spent around $16 billion attempting to rehabilitate the refineries—an amount he noted is close to the cost incurred by Dangote to build a modern refinery from scratch.

Obasanjo praised the current NNPCL leadership for acknowledging the true state of the refineries, suggesting that transparency is a step toward meaningful reform. Nonetheless, he maintained that without a shift toward private-sector-driven management, the facilities are unlikely to achieve sustainable operations.

The comments have sparked renewed public discourse on the future of Nigeria’s oil sector, especially as the government continues to explore solutions to reduce dependence on fuel imports and improve domestic refining capacity.

As discussions evolve, stakeholders are expected to weigh the merits of privatization against the challenges of reforming state-owned enterprises in a complex economic environment.