Dangote Sets New Conditions for NNPCL to Raise Stake in $20B Refinery

Aliko Dangote, President of the Dangote Group, has outlined fresh terms under which the Nigerian National Petroleum Company Limited (NNPCL) can increase its equity in the 650,000-barrel-per-day Dangote Refinery.

According to information obtained by PulseNets, Dangote maintained that the state oil company would only be allowed to expand its stake after the refinery has fully demonstrated its operational capacity and performance milestones.

In a recent conversation with S&P Global Commodity Insights, Dangote explained:

“The door remains open for the Nigerian National Petroleum Company to boost its stake, but that can only happen once the next phase of our growth is in motion and the refinery’s capacity is fully validated.”

PulseNets learnt that the billionaire industrialist also reiterated his plans to eventually list the multi-billion-dollar refinery on the Nigerian Exchange Limited (NGX), while clarifying that his long-term interest would not exceed a controlling share.

“We’re not looking to keep more than 65 to 70 percent,” Dangote told PulseNets in reference to his future ownership structure.

Earlier in 2024, NNPCL reported a reduction of its stake in the Dangote Refinery from 20 percent to 7.2 percent, a move that drew wide industry attention. At the time, the company’s spokesperson, Olufemi Soneye, told PulseNets that the divestment was part of a strategic reallocation of resources to support Nigeria’s compressed natural gas (CNG) expansion drive.

However, the refinery — which has been described as Africa’s largest single-train facility — recently experienced an operational glitch, leading to a temporary disruption in fuel distribution across parts of the country. Industry sources spoke to PulseNets, confirming that the supply hiccup had affected deliveries to several petroleum marketers who had already made advance payments running into billions of naira.

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Despite these challenges, energy analysts told PulseNets that the refinery remains a cornerstone of Nigeria’s energy independence ambition, with expectations high that full-scale operations will stabilize domestic fuel supply and reduce dependence on imports.