Yar’Adua rejected Dangote’s bid to run Nigeria’s refineries – Obasanjo

• Former President Olusegun Obasanjo revealed that late President Yar’Adua rejected Aliko Dangote’s $750 million bid to manage Nigeria’s refineries
• Obasanjo criticized the government’s inefficiency, stating over $2 billion has been spent on refineries since 2007 with no tangible results

Former President Olusegun Obasanjo has disclosed that late President Umar Musa Yar’Adua rejected a bid by billionaire Aliko Dangote to manage Nigeria’s refineries under a public-private partnership (PPP).

Obasanjo made this revelation during an interview on Channels TV on Thursday while discussing the state of the Port Harcourt, Warri, and Kaduna refineries during his administration.

The former president recounted his efforts to seek external expertise to rehabilitate and manage the refineries, only to face multiple hurdles.

Obasanjo explained that after Shell declined his invitation to run the refineries, Dangote stepped in, assembled a team, and paid $750 million for the opportunity to operate the facilities through a PPP agreement.

However, Yar’Adua later refunded the money, opting instead to leave the refineries under the Nigerian National Petroleum Corporation (NNPC).

“I asked Shell to manage the refineries for us. They refused. I offered them equity participation, but they still said no,” Obasanjo said.

He added that Shell’s decision was based on several factors, including their preference for profits from upstream operations, the small size of Nigeria’s refineries, poor maintenance, and widespread corruption in refinery activities.

According to Obasanjo, Dangote’s involvement presented a viable alternative, but Yar’Adua’s administration reversed the decision. “Aliko got a team together, paid $750 million, and was ready to manage the refineries. But my successor refunded the money.

He said NNPC assured him they could handle it when I asked why. I told him they couldn’t, and they still haven’t,” Obasanjo said.

He further claimed that over $2 billion has been spent on the refineries since the reversal with no tangible results.

Obasanjo highlighted the contrast between government inefficiency and Dangote’s private sector success. He expressed confidence in Dangote’s ability to make his privately-owned refinery operational and profitable.

“Aliko will make his refinery work and deliver. That’s the difference,” Obasanjo concluded.