Africa’s richest man and Chairman of the Dangote Group, Aliko Dangote, has expressed serious doubts over the possibility of the Nigerian National Petroleum Company Limited (NNPCL) refineries ever functioning properly again.
Dangote made the statement on Thursday, July 10, during a visit by members of the Global CEO Africa program from the Lagos Business School to the Dangote Petroleum Refinery in Lekki, Lagos.
He highlighted that despite spending around $18 billion on the Port Harcourt, Warri, and Kaduna refineries, they have remained non-functional, even after multiple turnaround maintenance projects.
He compared the process of upgrading the refineries to attempting to modernize a 40 year old vehicle.
“It’s like trying to modernise a car built 40 years ago when technology has completely changed. Even if you replace the engine, the body cannot withstand the demands of the new technology,” Dangote explained.
He also revealed that over 50% of the Dangote Refinery’s output is now focused on producing Premium Motor Spirit (PMS or petrol). In contrast, he noted that the government owned refineries only allocated about 22% of their production to petrol.
Dangote further spoke about his previous attempt to invest in Nigeria’s refineries. In 2007, during the administration of former President Olusegun Obasanjo, his group acquired the state-owned refineries. However, following a change in government, they returned the assets to President Umaru Musa Yar’Adua’s administration.
He explained that officials at the time had told President Yar’Adua that Obasanjo had sold the refineries to him at a price below market value, describing it as a “parting gift.”
“We bought the refineries in January 2007, but after a few months, we had to return them due to the new administration’s position,” he said.
Dangote emphasized that Nigeria needs at least 1.5 million barrels per day of refining capacity to meet the fuel demands of Africa, and that the Dangote Refinery, with its 650,000 barrels per day capacity, is a major step toward that goal.
NNPC’s refineries have consumed $18bn with no tangible results, Dangote believes they are outdated and not viable for modern upgrades, Dangote Refinery focuses over 50% of production on petrol, compared to NNPC’s 22%,He previously acquired and returned NNPC refineries due to political interference.
