Tinubu Insists Port Harcourt, Warri Refineries Will Work Despite Obasanjo’s Doubts

• President Bola Tinubu insists the Port Harcourt, Warri and Kaduna refineries will return to operation and says his administration will take responsibility for making them profitable.

• Former President Olusegun Obasanjo argues that private-sector participation is a better model, citing poor maintenance, corruption and the small scale of Nigeria’s government-owned refineries.

• Energy expert Dan Kunle opposes further government spending on the plants, while Port Harcourt host-community marketers support the rehabilitation plan but stress reliable crude supply and competent management.

August 17, () — President Bola Tinubu has rejected doubts over the viability of Nigeria’s state-owned Port Harcourt and Warri refineries, insisting that the facilities will return to operation.

Tinubu made the position known on Thursday when he received the Executive President of the Nigeria Union of Petroleum and Natural Gas Workers, Salimon Oladiti, and other union members at the Presidential Villa, Abuja.

The President said his administration was working on a sustainable structure for the refineries rather than simply restarting them.

“The refineries you mentioned are going to come back to work,” Tinubu said, adding that the government was focused on creating an economically viable structure around the facilities.

He stressed that restarting a refinery was not enough unless it could operate profitably and deliver the value for which it was established.

Tinubu also said he had accepted responsibility for the assets and liabilities inherited from previous administrations and would focus on making the facilities work.

His position contrasts with that of former President Olusegun Obasanjo, who has repeatedly questioned the ability of the Nigerian National Petroleum Company Limited to successfully operate the government-owned refineries.

Obasanjo, experts question rehabilitation model

Obasanjo recently argued that the refineries would be better managed through private-sector participation, drawing on his experience as president between 1999 and 2007.

He recalled approaching Shell to take a 10 per cent equity stake and operate the refineries, but said the oil major rejected the proposal. He also said Shell declined a separate offer to operate the facilities without taking equity.

According to Obasanjo, Shell cited the small size of the refineries, poor maintenance and corruption as major concerns.

He also recalled that Aliko Dangote had offered $750 million for a 51 per cent stake in two of the refineries during his administration, but the transaction was later reversed under the late President Umaru Musa Yar’Adua.

Obasanjo said the government had subsequently spent billions of dollars attempting to rehabilitate the facilities without achieving sustained commercial operations.

Energy expert Dan Kunle also criticised the continued rehabilitation strategy, arguing that the government should privatise the refineries and redirect public funds to sectors such as education, agriculture and infrastructure.

Kunle said successive administrations had attempted to revive the facilities without making them profitable and questioned why the Tinubu administration believed it could achieve a different outcome.

Tinubu’s Government Now Nigeria’s Biggest Liability, Atiku Fires Back Over NNPC Refinery Losses

After Years Of Failed Turnaround, Tinubu Orders Fresh Refinery Reset, Promises Profitable Operations

The test is sustainable operations

The disagreement comes as the government pursues another attempt to revive the refineries.

NNPCL Group Chief Executive Officer Bayo Ojulari recently announced a memorandum of understanding with two Chinese companies to rehabilitate and expand the Port Harcourt and Warri refineries.

Stakeholders in the Port Harcourt refinery’s host community, however, have backed the government’s approach, saying a successful restart would create jobs, revive businesses and strengthen energy security.

The Port Harcourt Refinery Host Community Bulk Petroleum Retailers Association said more than 200,000 people depend directly and indirectly on the facility and associated economic activities.

It also backed the proposed technical equity partnership with Chinese firms, while urging the government to ensure reliable crude supply, competent management and proper maintenance.

For the Tinubu administration, the challenge now goes beyond getting the refineries to restart.

The real test will be whether Port Harcourt and Warri can operate consistently, secure adequate crude supplies and generate enough revenue to justify the billions of naira committed to their rehabilitation.