Dangote Shuts Door On NNPC’s Fresh Bid For Bigger Refinery Ownership
By Wellington Jopelo
President of the Dangote Group, Aliko Dangote, has disclosed that his company rejected an attempt by the Nigerian National Petroleum Company Limited to acquire a larger stake in the Dangote Petroleum Refinery, insisting that the facility should eventually belong to a wider range of Nigerians through public investment.
Dangote made the revelation during a conversation with Nicolai Tangen, Chief Executive Officer of Norway’s Sovereign Wealth Fund, where he explained that the company deliberately refused to allow the state-owned oil firm to increase its ownership beyond the existing 7.25 per cent stake.
According to him, the decision was taken to preserve plans for the refinery’s future public listing, which is expected to give ordinary Nigerians and private investors the opportunity to own shares in the massive oil processing facility.
He explained that the refinery was built with the vision of transforming Nigeria’s energy sector while creating long-term economic value for citizens, stressing that expanding NNPC’s control was not part of the company’s broader strategy.
The NNPC had earlier purchased a minority stake in the refinery in 2021 for about $1bn after initial discussions reportedly targeted a much larger ownership share before negotiations were scaled down.
The refinery, located in the Lekki Free Trade Zone in Lagos, has increasingly become a major player in Nigeria’s petroleum market since commencing operations, with local fuel supply improving and dependence on imported petrol gradually reducing.
Dangote also noted that rising instability in the global crude oil market has created fresh export opportunities for the refinery, especially as demand for refined petroleum products continues to increase across parts of Africa and beyond.
Industry observers believe the latest development signals Dangote Group’s determination to maintain stronger private-sector influence over the refinery while positioning it for a future entry into the capital market.