Dangote Group President Alhaji Aliko Dangote has stated that the Nigerian National Petroleum Company Limited can increase its current 7.2 per cent stake in the Dangote refinery. However, the billionaire businessman said this would only happen after demonstrating the refinery’s capabilities to the state-owned oil company.
Dangote made this disclosure during a recent interview with S&P Global Commodity Insights. He emphasised the need to prove the refinery’s performance before engaging in discussions about NNPC increasing its shareholding.
“I want to demonstrate what this refinery can do, then we can sit down and talk,” Dangote stated. A close aide to the industrialist revealed that the company would exercise caution before inviting additional participation from NNPC.
The refining business plans to list 5–10 per cent of its shares on the Nigerian stock exchange within the next year. Dangote explained that the company does not intend to retain more than 65–70 per cent ownership, noting that shares would be offered incrementally based on investor appetite and market depth.
NNPC had previously reduced its stake in the Dangote refinery from 20 per cent to 7.2 per cent. Former NNPC spokesperson Olufemi Soneye disclosed last year that the reduction was made to redirect investment toward compressed natural gas infrastructure across Nigeria.
Soneye explained that NNPC recognised CNG as a more affordable energy alternative for Nigerians, particularly during the energy transition period. He noted that vehicle owners could fuel their cars with N10,000 worth of CNG and use it for two weeks, compared to the higher cost of petrol.
The reason for reducing our stake in the Dangote refinery is that we wanted to invest in CNG. We observed that CNG is very cheap, and all over the world, people are investing in clean and cheaper alternative energy,” Soneye said in August 2024. He added that NNPC is building multiple CNG stations nationwide to support the initiative.
The new NNPC Group Chief Executive Officer, Bayo Ojulari, recently told Argus Media that the company remains committed to increasing its stake in the 650,000-barrel-per-day refinery. Many Nigerians expressed surprise in 2024 when Dangote revealed that NNPC had reduced its investment to 7.2 per cent.
The Dangote refinery represents one of Africa’s largest oil refining facilities and is positioned to transform Nigeria’s petroleum product supply chain.
