Organized labour, petroleum marketers, and energy experts have supported Aliko Dangote’s assertion that Nigeria’s state-owned refineries under the Nigerian National Petroleum Company Limited (NNPCL) may never operate effectively again. Despite spending over $18 billion on the Port Harcourt, Warri, and Kaduna refineries, they remain largely non-functional. Dangote compared the rehabilitation efforts to modernizing a 40-year-old car, arguing that outdated infrastructure and obsolete technology cannot meet modern refining demands.
Ibrahim Yahaya of the Petroleum Dealers Association of Nigeria (PEDAN) noted the Kaduna refinery’s outdated design, originally meant for heavy crude from Venezuela and other countries, and criticized the lack of a sustainable supply agreement. He also pointed out the misalignment in contracts and engineering challenges due to the original Japanese design by Chiyoda Corporation. Without firm crude supply contracts, he argued, the refinery’s return to optimal performance is doubtful.
Energy expert Henry Adigun offered a slightly more optimistic view, suggesting the refineries could be revived with competent management and technical expertise. However, Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise agreed with Dangote, saying the chances of restoring efficiency in the ageing refineries are slim. He argued that continued investment in the outdated refineries without major reform would be wasteful and recommended considering privatization or complete government withdrawal from refinery operations.
The Nigeria Labour Congress (NLC) also voiced its disappointment in the government, calling the state of the refineries a “grand act of betrayal.” NLC’s Benson Upah blamed successive governments and the political elite for sabotaging public assets, adding that Dangote’s comments reflect the grim reality. The labour union expressed frustration not at Dangote but at those responsible for the refineries’ decline.
Meanwhile, the privately owned Dangote Refinery continues to progress, currently sourcing over half of its crude oil locally and aiming for 100% domestic supply by year-end. Vice President Devakumar Edwin revealed the company plans to eliminate reliance on foreign suppliers soon. Aliko Dangote emphasized that the refinery can fully meet Nigeria’s fuel demands and has a broader goal of serving the entire African continent under the African Continental Free Trade Area (AfCFTA).
Source: Leadership