Nigeria has spent over N6.5 trillion in the past decade attempting to revive its dormant refineries and the Ajaokuta Steel Complex—but with little to show for it. Mounting debt, stalled projects, and internal conflicts have cast doubt on the future of these state-owned assets.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has reportedly suspended contractors working on refinery rehabilitation amid rising tensions with anti-corruption agencies and government bodies. Sources suggest there are plans to label some previous payments as fraudulent in a bid to recover funds and push for the eventual sale of the refineries—likely at scrap value due to their deteriorated state and heavy liabilities.
Records show that the three government-owned refineries in Port Harcourt, Warri, and Kaduna now owe over N4.5 trillion. Despite receiving billions in funding, the facilities remain largely non-functional. The Port Harcourt refinery, for example, was shut down for what was supposed to be a brief repair, but it’s been idle for over 50 days with no progress reported.
Ajaokuta Steel Complex tells a similar story. After nearly 50 years and around N1.4 trillion spent between 2016 and 2024, the plant has yet to produce any steel. A significant chunk of the funds went to salaries, overhead costs, and legal settlements—most notably a controversial N758 billion payment to a firm previously embroiled in a dispute with the Nigerian government.
As discussions over the fate of these assets heat up, experts and stakeholders remain divided. Some believe selling the assets may be the only way to cut losses, while others caution against rushing into sales that might fail to recover even a fraction of the debt. They call for transparency, proper audits, and consideration of options like private sector partnerships or foreign management deals.
Meanwhile, the financial burden continues to grow. Between 2021 and 2024, NNPC spent over N272 billion on salaries alone for staff at non-operational refineries. Employee benefit costs jumped significantly in 2023, pointing to the strain of maintaining idle assets.
With the Dangote Refinery now operational and modular refineries supporting fuel supply, some analysts believe Nigeria can now make bold decisions about the future of its legacy assets. But without clear direction and honest leadership, the billions already spent may end up being written off as wasted investment.
