The reasons why Shell Petroleum Development Company declined to oversee and run Nigeria’s refineries under his leadership were recently revealed by former President Olusegun Obasanjo. Obasanjo claims that the oil tycoon turned down the proposal because of the nation’s long-standing political meddling and the absence of a viable business plan for the facilities.
According to reports, Shell voiced concerns about the inefficiency of Nigeria’s refineries, pointing to decades of mismanagement, corruption, and neglect that made them less functional. The business claimed that it would not be possible to make the refineries profitable without substantial structural changes and independence from government control.
Nigeria’s continuous problems with its downstream oil industry are highlighted by this disclosure. The refineries continue to operate poorly despite substantial investments in rehabilitation, which means there is a strong need to import petroleum.
In order to modernise the nation’s energy infrastructure and lessen reliance on imported oil products, Obasanjo’s remarks emphasise the urgent need for legislative changes and private sector participation.