Aliko Dangote, Africa’s richest man and head of the Dangote Group, has raised serious concerns about the viability of Nigeria’s three state-owned refineries—Port Harcourt, Warri, and Kaduna—despite billions of dollars spent on their rehabilitation. He bluntly stated his skepticism over their ability to ever function effectively.
Speaking during a tour of his own massive 650,000 barrels-per-day refinery in Lekki, Lagos, with visiting Global CEO Africa delegates, Dangote said the modernization of the NNPC-operated refineries was like “upgrading a car built 40 years ago”. In early July 2025, he noted that over $18 billion had been spent on turnaround maintenance for those facilities—with no lasting results.
🚫 Aging Infrastructure, Outdated Tech
Dangote explained that while government refineries occasionally produce petrol (PMS), their core systems remain obsolete. By contrast, his privately built refinery consistently sends more than 50% of its output to PMS. Analysts confirm that NNPC refines mostly through blending, while only the Dangote facility delivers genuine petrol production.
Experts and labour groups echo his sentiment. The Petroleum Dealers Association noted that Kaduna was never built for today’s heavy domestic crude, and that proper feedstock contracts are absent. The Centre for the Promotion of Private Enterprise warned that without complete privatization or major reforms, the government-run refineries remain a lost cause.
⚠️ Corruption and Cabals
Former President Olusegun Obasanjo and others point to entrenched corruption and vested interests. Obasanjo said international oil companies refused to manage them, despite offers, and that the current operators wanted to maintain profits from dysfunction . Dangote himself accused “oil and gas mafia” of undermining his efforts .
✅ What Dangote’s Success Shows
The contrast couldn’t be clearer. Dangote constructed the world’s largest single-train refinery in under two decades—costing around $20 billion—and it’s already operating, exporting fuel to Asia and southern Africa. Meanwhile, reams of state spending have failed to kick-start outdated refineries.
An energy analyst remarked that Nigeria’s aging refineries are beyond repair without massive overhauls—which rivals the cost of building new ones .
🛠️ The Path Forward
Nigeria faces a choice: continue funneling scarce resources into failing assets, or embrace private-led growth models. Dangote and advocates call for full privatization—potentially allowing modular refineries to emerge, based on modern technology and market dynamics .
📝 Bottom Line
Dangote’s skepticism is more than rhetoric—it mirrors a widespread belief that billions have been wasted on refineries that may never work. As Nigeria endures fuel scarcity and economic strain, the question is no longer if these facilities can operate—but when the political will will shift toward sustainable, efficient solutions.
Voice of Lagos encourages readers to weigh in:
🗣️ Should Nigeria privatize its refineries? Are the government efforts futile, or can they be rehabilitated? Let us know in the comments below!
