Fresh Bombshell As Obasanjo Reveals How Shell Rejected Nigeria’s Refineries

Obasanjo made the remarks during a television interview aired Saturday on Sony Irabor Live, amid ongoing efforts by the Nigerian National Petroleum Company Limited (NNPCL) to secure technical partners to manage the refineries.

Recall that in November 2025, the NNPCL announced plans to conclude the selection of technical partners by June 2026.

Speaking during the interview, Obasanjo argued that public-private partnerships have proven more effective than government-run enterprises, citing the Nigeria Liquefied Natural Gas (NLNG) model as an example.

He said he had long maintained that the country’s refineries would not work as currently structured and recalled attempts during his presidency to involve global energy giant Shell in managing them.

According to him, he personally appealed to Shell to either take equity in the refineries or run them on Nigeria’s behalf, but the company declined.

Obasanjo said he later sought an explanation from a top Shell official, who reportedly cited poor profitability in downstream operations, the small scale of Nigeria’s refineries, poor maintenance culture, and entrenched corruption as reasons for rejecting the offer.

He explained that Shell considered the facilities too outdated and too troubled to manage profitably.

The former president also recounted how billionaire industrialist Aliko Dangote later offered $750 million to acquire a 51 per cent stake in two of the refineries, a proposal he described at the time as a breakthrough.

According to Obasanjo, the deal was completed, but was later reversed by his successor, the late President Umaru Yar’Adua, allegedly following pressure from the NNPC.

He said he had warned against undoing the transaction, insisting the refineries would eventually be worth little more than scrap.

Obasanjo further claimed billions of dollars have since been spent on turnaround efforts without meaningful results, noting that the amount reportedly invested approaches the cost of building the Dangote Refinery.

He added that the current NNPC Group Chief Executive Officer, Bayo Ojulari, is among the few officials who have been honest with Nigerians about the true condition of the refineries.