KEY POINTS
- Nigeria’s state oil firm plans to raise its ownership in Dangote Refinery to 20 percent.
- Dangote aims to expand the refinery’s capacity to 1.4 million barrels per day within three years.
- The expansion could strengthen Nigeria’s forex reserves and reduce fuel imports.
Nigeria’s state-owned oil company is setting its sights on greater control over the country’s refining future. The Nigerian National Petroleum Company, NNPC, Limited has announced plans to raise its equity stake in Aliko Dangote’s $20 billion refinery to 20 percent, a strategic bid to deepen local participation in energy production and curb the country’s long-standing dependence on imported fuel.
Bayo Ojulari, chief executive officer of NNPC, revealed the plan during the 2025 Abu Dhabi International Petroleum Exhibition and Conference. According to him, the proposed stake increase reflects Nigeria’s broader ambition to fortify domestic refining capacity and secure long-term energy stability.
“The company is working towards increasing its stake in Nigeria’s Dangote refinery to 20 percent,” Ojulari said. His statement comes shortly after George Elombi, president of the African Export-Import Bank (Afreximbank), confirmed that Dangote was preparing to raise $5 billion for the refinery’s expansion.
Dangote Eyes 1.4 Million-Barrel Daily Capacity
Speaking at a briefing in Lagos last month, Dangote disclosed that the refinery’s processing capacity is expected to double from 650,000 barrels per day to 1.4 million barrels per day within three years. He said the expansion would be financed through internal revenue, a potential public listing, and new investments.
“This expansion reflects our confidence in Nigeria’s future and our commitment to ensuring Africa’s energy independence,” Dangote said. Once completed, the facility would surpass India’s Jamnagar complex to become the world’s largest refinery, potentially generating up to $55 billion in annual revenue. Analysts believe this could significantly strengthen Nigeria’s foreign exchange reserves and ease pressure on the naira by slashing fuel imports.
NNPC Strengthens Ties with Dangote Group
The NNPC’s growing interest comes as Dangote prepares to list between five and ten percent of the refinery’s shares on the Nigerian Exchange next year. The move, following the model of Dangote Cement and Dangote Sugar, will open the door for investors to participate in one of Africa’s most transformative industrial projects.
“Within the next year, the refining business will list five to ten percent of its shares,” Dangote confirmed. “We’ll release shares gradually based on investor appetite and market strength.”
For NNPC, the decision is part of a wider push to ensure Nigeria captures more value from its oil resources. Earlier in the year, its gas subsidiary acquired a 15 percent stake in Greg Ogbeifun’s Starzs Gas Limited for $7 million — a deal seen as a signal of the company’s shift towards cleaner energy and domestic utilisation.
The partnership between Dangote and NNPC marks a new phase in Nigeria’s energy evolution. As the refinery gears up for expansion, the move could redefine the nation’s oil landscape, boosting industrial productivity and creating a ripple effect across Africa’s energy markets.
