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Former Nigeria’s President Olusegun Obasanjo has revealed that the Nigerian National Petroleum Corporation (NNPC), now Nigerian National Petroleum Company Limited (NNPC Limited) rejected a $750 million offer from Aliko Dangote to manage the Port Harcourt and Kaduna refineries in 2007.

The revelation was made by Obasanjo in a recent interview with Channels Television as he disclosed that NNPC at the time cited advice from Shell Petroleum Development Company (SPDC) that the refinery would not function effectively.

Obasanjo explained that Dangote, Africa’s richest man, had proposed a Public-Private Partnership (PPP) to revitalize the struggling refineries. Despite NNPC’s acknowledgment of its own limitations in effectively operating the refineries, the offer was declined, and Dangote’s payment was refunded.

“My successor refunded their money, and I went to him to explain what had transpired. They wanted the refineries, and they could run them. I said, ‘But you know they cannot run it,'” Obasanjo recounted.

Since the rejection, the Port Harcourt and Kaduna refineries have been plagued by inefficiencies, frequent shutdowns, and underutilization, leading to a heavy reliance on imported refined petroleum products.

Industry experts had criticized the decision to reject Dangote’s offer, citing the potential benefits of a PPP in improving refinery operations and reducing import dependency.

According to a report by the Nigerian Extractive Industries Transparency Initiative (NEITI), Nigeria’s refineries operated at an average capacity utilization of less than 20% between 2015 and 2020.

NNPCL’s Response and Invitation

However, in response to Obasanjo’s revelations, NNPC Limited’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, invited the former president to visit the facility, emphasizing the company’s commitment to transparency and accountability. “Furthermore, we extend an open invitation to President Obasanjo for a tour of the rehabilitated refineries to witness firsthand the progress made under the new NNPC Limited,” Soneye stated.

Soneye also invited Obasanjo to join NNPC Limited in its determination to guarantee the country’s energy security. “We invite our esteemed former president to join us in this effort as we continue to deliver energy security for our nation and provide tangible benefits to Nigerians. His wisdom and experience are invaluable, and we assure him that his advice will always be welcomed and appreciated,” he added.

Comprehensive Overhaul and Transformation

Soneye explained that NNPC Limited did not merely carry out a turnaround maintenance on the plant but embarked on a complete overhaul of the refinery. “As part of this transformation, NNPC Limited has gone beyond oil and gas to become an integrated energy company. One of our notable achievements is the complete rehabilitation of the Port Harcourt Refining Company (PhRC) and Warri Refinery,” he said.

“This process was not merely the Turnaround Maintenance (TAM) of the past but a full-scale overhaul designed to meet world-class standards. Similarly, we are currently conducting the same comprehensive rehabilitation of the old Port Harcourt Refinery and Kaduna Refinery,” Soneye added.

Transition to a Profit-Driven Entity

Soneye highlighted that NNPC Limited has evolved from being a government corporation to a private entity with limited liability. “Owing to this transition, NNPC Limited has also moved on from being a loss-making organization to a profit-driven international energy firm. The new NNPC Limited is committed not only to enhancing these refineries but also to maintaining them to global standards,” he noted.

Soneye assured that NNPC Limited will ensure the sustainable operation of the refineries and contribute significantly to Nigeria’s energy security. “Regarding his recent comments, we would like to respectfully clarify the current state of the NNPC. The NNPC has undergone a transformative journey, evolving from a government corporation into a private entity—NNPC Limited. This transition has marked a significant shift from being a loss-making organization to a profit-oriented global energy company,” he explained.

Respect and Collaboration

“We deeply respect and hold President Obasanjo in the highest regard as a distinguished statesman who has contributed significantly to the progress of our nation. He has every right to share his perspectives on national issues, and we value his insights and counsel,” Soneye said.

“We remain grateful for his leadership and enduring commitment to the growth and development of Nigeria. Together, we can continue to build a brighter future for our great nation,” he concluded.

Soneye also addressed a media report suggesting that NNPC Limited was to stop the supply of crude oil to Dangote Refinery, dismissing it as falsehood. “No need to respond to falsehood,” he stated.

ABUJA BUSINESS REPORTS NEWSPAPER & MAGAZINE