Aliko Dangote, Africa’s richest man and founder of the Dangote Group, has delivered a scathing verdict on Nigeria’s four government-owned refineries, stating that they may never function efficiently again despite gulping over $18 billion in turnaround maintenance. Speaking during a recent interview, Dangote likened the facilities — located in Warri, Kaduna, and Port Harcourt — to “40-year-old cars that can no longer support new parts.” He emphasized that the continuous investment in their rehabilitation has yielded no meaningful results over the decades.
Dangote recalled how previous administrations, including that of former President Olusegun Obasanjo, had approached global firms like Shell and Chevron to manage the refineries, but they all declined, citing outdated structures and mismanagement. He also revealed that his own $750 million bid in 2007 to take over and manage the plants was rejected. According to him, the systemic issues and resistance to reform within the Nigerian National Petroleum Company Limited (NNPC) have left the refineries technologically obsolete and economically unviable.
In contrast, Dangote’s private refinery in Lekki, Lagos — built at a cost of over $20 billion — has already begun full-scale operations. It currently produces 50% Premium Motor Spirit (petrol), significantly higher than the 22% yield from the public refineries. He believes the future of Nigeria’s oil sector lies in private innovation and transparent management, not in endlessly reviving dead assets. His comments reignite conversations about the viability of public enterprises and the urgent need for structural reform in Nigeria’s energy sector.