In a dramatic twist of vindication, former President Olusegun Obasanjo’s early warnings about the futility of maintaining Nigeria’s state-owned refineries have come full circle, exposing the country’s oil sector to widespread criticism and financial shame.
Back in 2006, President Obasanjo made what many now see as a visionary move by attempting to privatize Nigeria’s derelict refineries. He cited the entrenched corruption and inefficiency within the Nigerian National Petroleum Corporation (NNPC) and asserted that the facilities were beyond salvation. His administration sold two of the refineries to Dangote and Bluestar Consortium, but the deal was later reversed by the late President Umaru Musa Yar’Adua under pressure from labour unions and political hawks within the oil cabal.
While many criticized Obasanjo at the time, his predictions have proven accurate. Over $18 billion has been sunk into the so-called “Turn Around Maintenance” (TAM) of these facilities in the years that followed—with zero results.
In a more recent development, President Muhammadu Buhari’s administration approved another $3 billion in funding for refinery rehabilitation, particularly the Port Harcourt refinery. Critics advised building a new refinery from scratch with that sum—a more sustainable and future-forward option—but were ignored.
The Nigerian public was briefly swayed when pro-government media and NNPC leadership claimed that the Port Harcourt refinery had resumed operations. Celebratory headlines flooded the press, with some APC loyalists mocking Obasanjo, saying he never understood how to make Nigeria work.
However, investigative reports and recent statements from NNPC insiders have debunked these claims, revealing that the refinery remains largely non-functional. The bold PR campaign was nothing more than a mirage designed to cover up layers of corruption and mismanagement.
What Obasanjo foresaw nearly two decades ago is now Nigeria’s tragic reality. The government could have saved the nation billions and fast-tracked development by allowing the private sector to handle refinery operations, just like it did with NITEL, now transformed under private ownership into a viable telecom asset.
As the Dangote Refinery begins to show promise and capability with no government interference, the contrast is glaring: vision and action must replace bureaucracy and corruption. Obasanjo’s once-contested decision now stands as a rare moment of foresight in Nigeria’s chaotic energy sector.
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