President Bola Tinubu has firmly stated his commitment to reviving the Port Harcourt and Warri refineries, despite skepticism expressed by former President Olusegun Obasanjo regarding their operational viability. During a meeting with the Executive President of the Nigeria Union of Petroleum and Natural Gas Workers, Salimon Oladiti, at the Presidential Villa in Abuja, Tinubu emphasized that the refineries would be restored to functionality.

Tinubu's remarks come after Obasanjo publicly questioned the feasibility of the state-owned refineries ever becoming operational again, citing the significant investments that have failed to yield results over the years. The President asserted, "The refineries you mentioned are going to come back to work. We’re just building a very firm research and structural reworking of the economy of it."

The President's confidence contrasts sharply with Obasanjo's long-held belief that the Nigerian National Petroleum Company Limited (NNPC) lacks the capability to manage the refineries effectively. In a recent interview, Obasanjo argued that public-private partnerships are essential for the successful operation of major government assets, pointing to the success of the Nigeria Liquefied Natural Gas (NLNG) project as a model.

Obasanjo's concerns are rooted in his experience during his presidency from 1999 to 2007, when he attempted to privatize the management of the refineries. He recalled reaching out to Shell for a partnership, only to be met with refusal due to the small size and poor maintenance of the Nigerian refineries. He noted that the company deemed the facilities unprofitable and fraught with corruption, leading to their reluctance to engage in any operational agreements.

The former President highlighted that approximately $16 billion has been spent on the rehabilitation of these refineries, a figure he argues is alarmingly close to the cost of building a new facility. He expressed concern that the government’s approach to the refineries has been ineffective, with past administrations failing to deliver on promises of restoration.

In response to Tinubu’s assertions, energy expert Dan Kunle criticized the ongoing investment in the aging refineries, suggesting that the government should instead focus on privatization. He argued that the historical failures of these facilities indicate that they are unlikely to become profitable, regardless of the amount spent on repairs. Kunle proposed that a new refinery should be built alongside the existing ones to provide a comparative analysis of operational efficiency.

Despite the skepticism surrounding the refineries, local stakeholders have shown support for Tinubu's plans. The Port Harcourt Refinery Host Community Bulk Petroleum Retailers Association expressed their commitment to mobilizing support for the President, promising to double the votes he received in Rivers State during the last election if the refinery resumes operations before the next general election. They emphasized the economic importance of the refinery, noting that its revival could create jobs and bolster local businesses.

As discussions continue, the challenge remains for Tinubu's administration to transition from promises of rehabilitation to establishing a sustainable and profitable refining operation that can meet the energy needs of the nation. The upcoming months will be crucial in determining the future of Nigeria's state-owned refineries and the broader implications for the country's energy sector.