NNPC refineries may cease to work again despite $18bn investment – Dangote
Alhaji Aliko Dangote, President of the Dangote Group, has voiced significant skepticism regarding the likelihood of the state-owned Port Harcourt, Warri, and Kaduna refineries resuming full operations, despite a staggering $18 billion investment from the Nigerian National Petroleum Company Limited (NNPC).
In a statement made during a gathering with Global CEO Africa members following a tour of the Dangote Petroleum Refinery in Lagos, Dangote remarked, “I don’t think, and I doubt very much if they will work.” He criticized the inefficiencies surrounding the management of the refineries, which have yet to show any signs of operational viability after years of investment.
Dangote reminisced about his own experience in 2007 when he and his team had to return the government-owned refineries shortly after acquiring them.
He noted, “The refineries that we bought before… were doing about 22 percent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government.” This was in reference to the transition from former President Olusegun Obasanjo to late President Umar Yar’Adua.
Adding to the conversation, Dangote highlighted the challenges associated with upgrading aging infrastructure, stating that “turnaround maintenance is like trying to modernise a car that was built 40 years ago, when technology has advanced.”
These sentiments echo comments made by Obasanjo, who previously criticized the NNPC’s ability to manage the refineries, asserting, “NNPC knew that they could not do it.” He further warned that unless privatized, the state-owned refineries would remain a financial burden on the country.
As discussions surrounding the functionality of these facilities continue, stakeholders and industry experts are increasingly advocating for privatization as a potential solution to alleviate the economic strain caused by these non-operational refineries.
Source: PUNCH
