KEY POINTS
- Aliko Dangote said he rejected NNPC’s request to increase its 7.25% stake in the Dangote Refinery.
- The refinery is preparing for a $50bn multi-exchange listing aimed at broad investor participation.
- The move is intended to widen ownership and support a public offering rather than concentrate shares with institutional investors.
Nigerian billionaire businessman, Aliko Dangote, has revealed that he rejected attempts by the Nigerian National Petroleum Company Limited, NNPC, to increase its minority stake in the soon-to-be publicly listed Dangote Petroleum Refinery.
Dangote made the disclosure during a podcast interview with the Chief Executive Officer of Norway’s sovereign wealth fund, Nicolai Tangen, where he discussed the ownership structure and future listing plans of the refinery.
He explained that while the state-owned oil company currently holds a 7.25 per cent stake in the 650,000 barrels-per-day facility, it had expressed interest in expanding its shareholding.
However, he said the request was turned down because the refinery is preparing for a public listing that will allow wider participation by Nigerians and international investors.
The Dangote Petroleum Refinery is preparing for a multi-exchange public listing with an estimated valuation of about $50 billion.
As part of the process, the company has appointed a consortium of financial advisers, including Stanbic IBTC Capital, Vetiva Capital Management, and FirstCap, to manage various aspects of the listing.
The planned listing is expected to open up ownership of one of Africa’s largest refining facilities to retail and institutional investors across Nigeria and global markets.
NNPC stake history and ownership dispute clarified
Dangote also revisited earlier discussions around the NNPC’s investment in the refinery, noting that the national oil company initially acquired its 7.25 per cent stake in 2021 for about $1 billion, with an option to increase its holding.
He stated that although there were earlier expectations that NNPC would expand its stake to as much as 20 per cent, those plans did not materialise due to payment and agreement adjustments.
According to him, the final position left NNPC with a reduced stake compared to initial projections, a development he attributed to the company’s decision not to complete additional payments within agreed timelines.
Dangote said the decision to reject further stake expansion by the NNPC was driven by a broader vision to democratise ownership of the refinery.
He explained that the goal is to ensure that more Nigerians and global investors can participate in the upcoming listing rather than concentrating ownership in a few institutional hands.
He also highlighted policy consistency and government participation as key factors influencing long-term investment decisions in large-scale infrastructure projects.
