Dangote Declares NNPC Refineries May Never Operate Again After $18 Billion Investment

During a recent engagement with members of the Global CEO Africa from the Lagos Business School, Aliko Dangote, President of the Dangote Group, expressed skepticism about the viability of Nigeria's state-owned refineries in Port Harcourt, Warri, and Kaduna. He highlighted that despite an investment of approximately 18 billion, these facilities remain non-operational.

Dangote's remarks come in the context of the ongoing challenges faced by the Nigerian National Petroleum Company Limited (NNPC) in revitalizing these refineries. While the Warri Refinery resumed partial operations in late 2024 after a significant revamp, it has historically struggled with underutilization and inefficiencies.

In contrast, Dangote's own refinery project in Lekki, Lagos, represents a significant private sector investment in Nigeria's oil refining capacity. The Dangote Refinery, with a capacity of 650,000 barrels per day, aims to reduce the country's reliance on imported fuel. 

The Nigerian government's efforts to rehabilitate the state-owned refineries have faced criticism due to delays and cost overruns. Former President Olusegun Obasanjo has also expressed doubts about the success of these rehabilitation projects, citing past inefficiencies and management challenges.

As Nigeria continues to grapple with energy security and economic diversification, the contrasting fortunes of the state-owned refineries and the Dangote Refinery underscore the complexities of the country's oil sector.