Former Nigerian President, Chief Olusegun Obasanjo, has explained why Shell declined to buy an equity stake in Nigeria’s refineries during his presidency from 1999 to 2007.
In an interview with the Financial Times, Obasanjo discussed Nigeria’s oil industry and the future role of the Dangote refinery in meeting the fuel demands of Nigeria and West Africa.
Obasanjo revealed that Shell refused to invest in Nigeria’s refineries because they were poorly managed and maintained. The company did not want to be part of what it saw as a “mess.”
“When I was President, I invited Shell to take equity participation and manage our refineries. They refused, citing poor maintenance and management, amateur operations instead of professional ones, and excessive corruption,” he said.
Obasanjo also commented on recent allegations by Aliko Dangote, President of the Dangote Group, that some government and non-government officials were trying to obstruct the $20 billion refinery project.
He stated that those profiting from fuel importation would do everything possible to hinder the Dangote Petroleum Refinery.
The former president remarked that Dangote’s investment in a refinery, if successful, should inspire both Nigerians and foreigners to invest in Nigeria. He noted that those who currently sell or supply refined products to Nigeria might feel threatened by the potential loss of their lucrative opportunities and would likely try to frustrate Dangote’s efforts.
