Dangote reveals why he was forced to return NNPC refineries after paying $750 million

• Nigerian Billionaire, Aliko Dangote, has told the communicative of however helium purchased the NNPCL refineries astir 20 years ago
• He besides shared reasons wherefore the refineries whitethorn ne'er relation again, nary substance the magnitude of wealth invested by the government
• Meanwhile, Dangote Refinery and the NNPC are inactive successful a terms war, each trying to connection Nigerians the champion prices possible

Ruth Okwumbu-Imafidon, a writer with Legit.ng, has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

The Nigerian National Petroleum Corporation Limited (NNPCL) has been embroiled successful a immense ungraded aft its effort to revamp the 3 refineries failed.

Reports corroborate that implicit $18 cardinal was allocated and released for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.

Despite spending this immense sum, the refineries could inactive not nutrient immoderate fuel, starring to calls for an investigation.

Dangote explained that the Dangote refinery contiguous produces astir 50% PMS output, much than the 22% achieved by NNPC refineries erstwhile they were functional. Photo credit: Contributor
Source: Getty Images

President Bola Tinubu changed the full absorption team, bringing successful Bayo Ojulari arsenic the caller GCEO and MD.

As a result, respective past executives of NNPCL person had to conscionable with the Economic and Financial Crimes Commission (EFCC) for questioning.

According to the President of the Dangote Group, Alhaji Aliko Dangote, determination is simply a precocious accidental that each 3 whitethorn ne'er enactment again.

Dangote shares his past with NNPC refineries

Speaking connected Thursday portion hosting members of the Global CEO Africa from the Lagos Business School, Dangote revealed that helium was challenged to physique the 650,000 capableness refinery aft the national authorities upturned his plans to get the NNPC refineries.

He narrated however helium purchased the refineries nether the medication of the past President Olusegun Obasanjo, and had to instrumentality them to the authorities nether the adjacent medication led by President Umar Yar’Adua.

He said:

“We bought the refineries successful January 2007. Then we had to instrumentality them to the authorities due to the fact that determination was a alteration of government. And the managing manager astatine that clip convinced Yar’adua that the refineries would work. "They said they conscionable gave them to america arsenic a parting acquisition oregon so. And arsenic of today, they person spent astir $18bn connected those refineries, and they are inactive not working. And I don’t think, and I uncertainty precise overmuch if they volition work.”

Why the 3 NNPC refineries whitethorn ne'er enactment again

According to the PUNCH, Dangote explained that trying to rehabilitate the refineries would magnitude to trying to modernize a car built 40 years ago, erstwhile it has agelong been overtaken by technological advancements.

He said:

“Even if you alteration the engine, the assemblage volition not beryllium capable to instrumentality the daze of that caller exertion engine.”

Recall that 2 of the 3 refineries were declared operational aft spending billions of dollars connected them, but ended up shut down aft a fewer months.

Obasanjo stated that if an planetary institution similar Shell said the refineries could not beryllium revamped, past helium would basal by their opinion. Photo credit: Contributor
Source: Getty Images

The Warri Refinery remained operational for lone 1 period aft its re-commissioning earlier it was shut down connected January 25, 2025, owed to information issues.

Even earlier the latest expenditure, the authorities has spent billions implicit the years. In 2021, NNPC gulped N100 cardinal connected refinery rehabilitation, positive N8.33 cardinal monthly expenses.

There was besides a turnaround attraction that gulped implicit $396 cardinal betwixt 2013 and 2017.

Former President Obasanjo declares NNPC refineries dormant

In related news, Former President Olusegun Obasanjo had likewise declared that the NNPC refineries could not beryllium revamped.

Obasanjo remarked that determination were aggregate adept opinions from planetary lipid companies similar Shell, confirming that the refineries could not beryllium revamped.

He added that the lone accidental to person achieved it was backmost successful 2007 erstwhile Aliko Dangote paid $750 million to instrumentality implicit the refinery, but the transaction was upturned by Yar’ Yar'Adua.

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Source: Legit.ng