President of the Dangote Group, Aliko Dangote, has announced that the Nigerian National Petroleum Company Limited (NNPC Ltd.) will only be allowed to increase its stake in the 650,000-barrel-per-day Dangote Refinery after the facility has fully demonstrated its operational capacity and entered its next phase of growth.
Speaking in an exclusive interview with S&P Global Commodity Insights, Dangote clarified that while the refinery remains open to further equity participation from the state-owned oil company, such expansion will not occur until the refinery’s performance has been fully proven.
“The door remains open for Nigerian National Petroleum Co. to boost its stake after the state oil company trimmed its interest to 7.2 per cent, but not before its next phase of growth is well underway,” Dangote said.
He also reiterated his intention to retain a controlling interest in the multibillion-dollar facility, noting that he plans to keep his ownership between 65 and 70 percent. “We don’t want to keep more than 65–70 per cent,” he stated.
In 2024, NNPC Limited announced a reduction of its equity in the Dangote Refinery from 20 percent to 7.2 percent. The company explained that the decision was aimed at freeing up capital to fund its expansion into compressed natural gas (CNG) and other energy diversification projects.
The $20 billion Dangote Refinery, located in Lagos, is Africa’s largest single-train petroleum refinery and one of the most ambitious industrial projects on the continent. Its full-scale operation is expected to significantly reduce Nigeria’s dependence on imported refined petroleum products and stabilize domestic fuel supply.
However, recent reports indicated that the facility experienced a temporary operational setback, leading to a brief disruption in fuel supply. Bloomberg reported that several petroleum marketers had complained of non-supply despite making substantial advance payments to the refinery.
Industry analysts believe Dangote’s insistence on maintaining operational control reflects a strategic move to stabilize the refinery’s output before any additional share expansion. Observers also note that the company’s long-term plan to list on the Nigerian Exchange Limited (NGX) could open new investment opportunities for both local and international stakeholders once the refinery achieves steady-state production.
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