Dangote Says Nigeria’s Refineries May Never Work Despite $18 Billion Spent

President of the Dangote Group, Aliko Dangote, has cast serious doubt on the viability of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna, stating that they may never function again—despite an estimated $18 billion spent on their rehabilitation.

Dangote made the statement on Thursday while hosting members of the Global CEO Africa network from the Lagos Business School during a tour of the Dangote Petroleum Refinery in Lekki, Lagos.

“They have spent about $18 billion on those refineries, and they are still not working. I don’t think, and I doubt very much, if they will ever work,” Dangote said.

The billionaire industrialist criticized the performance of the refineries, currently operated by the Nigerian National Petroleum Company Limited (NNPCL), which have remained largely non-functional despite years of funding and rehabilitation efforts.

Recalling his past attempt to acquire the refineries, Dangote said the Dangote Group had successfully purchased them in January 2007 during the final days of President Olusegun Obasanjo’s administration. However, the deal was reversed when President Umar Musa Yar’Adua took office.

He explained that the reversal followed advice from the then-managing director of the refineries, who reportedly convinced Yar’Adua that the facilities were a “parting gift” from Obasanjo and that government alone could restore them to working condition.

“The refineries we bought in January 2007 were returned to the government because there was a change of administration. The MD at the time told Yar’Adua the refineries would work and that they were handed over as a parting gift,” he said.

Dangote also highlighted the difference in output between his privately owned refinery and the state-run facilities. While the government refineries allocated just 22% of their capacity to Premium Motor Spirit (petrol), the 650,000 barrels-per-day Dangote Refinery currently channels over 50% of its output to petrol production.

His remarks underscore growing concerns over the sustainability and transparency of public investments in Nigeria’s oil sector, especially as the country still relies heavily on fuel imports despite its vast crude oil resources.