KEY POINTS
- Aliko Dangote says NNPC wanted to increase its stake in the Dangote Refinery, but the offer was declined to allow broader public participation.
- The refinery is currently producing above capacity and is preparing for a major IPO to attract more investors.
- Dangote highlights strong output, global demand shifts, and plans for massive expansion and future valuation growth.
The President of the Dangote Group, Aliko Dangote, has revealed that the Nigerian National Petroleum Company (NNPC Limited) attempted to increase its equity stake in the Dangote Petroleum Refinery, but the offer was turned down to promote wider public ownership ahead of a planned listing.
Speaking in an interview with the CEO of Norway’s sovereign wealth fund, Nicolai Tangen, Dangote said the decision was intentional, as the group prepares for an initial public offering (IPO) that will allow more Nigerians and global investors to participate in the refinery’s ownership.
Dangote explained that while the NNPC already holds a minority stake of 7.25 per cent in the refinery, the company sought to acquire additional shares. However, he said the group rejected the proposal.
He noted that the goal is to “spread ownership” and ensure that the refinery becomes a publicly accessible investment rather than remaining concentrated among a few institutional stakeholders.
The refinery project is operated under the Dangote Petroleum Refinery, a major industrial asset built to reduce Nigeria’s dependence on imported refined petroleum products.
Background of NNPC’s Stake
The NNPC originally acquired a 7.25 per cent stake in the refinery in 2021 for about $1 billion, with an option to increase its shareholding later. However, Dangote disclosed that the company later opted not to proceed with the full agreed stake, eventually retaining only its existing portion.
He also stated that earlier expectations of a 20 per cent ownership structure were not fully realized due to payment and extension issues, a claim previously made public in earlier discussions about the project.
Dangote further revealed that the refinery is now processing more than its installed capacity, operating at about 661,000 barrels per day compared to its 650,000 bpd design target.
He described this as proof that the facility has exceeded expectations and demonstrated operational stability since commissioning.
The refinery, which began operations in 2023, is increasingly seen as a major player in global refining markets, with rising output of petrol, diesel, aviation fuel, and petrochemicals.
According to Dangote, the project was financed through a mix of African and international lenders, including Nigerian banks and institutions such as Afreximbank and the Africa Finance Corporation.
He added that improved performance has strengthened investor confidence, making it easier for the group to attract funding for future expansion plans.
The refinery is expected to scale up to 1.4 million barrels per day within the next 30 months as part of a broader expansion strategy.
