Dangote Refinery Open to More Stake Acquisition by NNPC as It Targets Selling Shares to Nigerians
- Aliko Dangote stated that the NNPC could increase its 7.2% stake in the Dangote Refinery once the facility proves its full operational capacity
- The NNPC had earlier reduced its stake from 20% to 7.2% to focus on developing compressed natural gas (CNG) infrastructure
- Dangote also revealed plans to list 5–10% of the refinery’s shares on the Nigerian Stock Exchange while maintaining a majority ownership
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The President of Dangote Group, Alhaji Aliko Dangote, has said that the Nigerian National Petroleum Company Limited (NNPC Ltd) could increase its current 7.2% shareholding in the Dangote Refinery once the plant demonstrates its full operational capabilities.
Recall that the NNPC had earlier reduced its equity stake in the 650,000-barrel-per-day refinery from 20% to 7.2%.
Source: UGC
Speaking in an interview with S&P Global Commodity Insights, Dangote explained that discussions about expanding NNPC’s stake would take place only after the refinery’s next growth phase is successfully underway.
He said:
“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."
An associate of Dangote, who also spoke on the matter, noted that the company intends to proceed cautiously before allowing any increase in the NNPC’s involvement.
He added that within the next year, Dangote Industries plans to list between 5 and 10% of the refinery’s shares on the Nigerian Stock Exchange.
Dangote clarified that the group aims to retain a 65 to 70% ownership interest, with additional shares offered gradually depending on market conditions and investor demand.
Dangote had also announced bold plans to expand the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day, a move that would make it the largest refinery in the world.
Why NNPC reduced stake in Dangote Refinery
Former NNPC spokesperson, Olufemi Soneye, revealed in 2024 that the reduction was part of a strategic move to redirect funds toward the development of compressed natural gas (CNG) infrastructure across the country.
During an appearance on Berekete Family Radio, Soneye explained that the company viewed CNG as a cleaner and cheaper energy source suitable for Nigeria’s energy transition.
“We decided to limit our interest in the Dangote Refinery to 7.2% so we could focus on investing in CNG projects. Gas is affordable and abundant in Nigeria. With about N10,000, motorists can fill their tanks and drive for two weeks. So, it makes sense to invest in this cleaner alternative.”
Meanwhile, the new Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, recently told Argus Media that the company remains interested in expanding its stake in the Dangote Refinery in the future.
Many Nigerians were taken aback when Dangote confirmed in 2024 that the NNPC’s shareholding had been cut to just 7.2%.
Source: Twitter
Dangote Refinery adjusts petrol gantry price
Meanwhile, Legit.ng reported that the Dangote Refinery had restarted full-scale operations and adjusted its petrol gantry price upward by about 7%, while keeping rates below those charged by most depots.
Although the refinery aims to help stabilise fuel prices, many filling stations across the country continue to sell petrol at over N900 per litre.
Analysts have praised the refinery’s renewed momentum, noting that its operations mark a crucial step toward Nigeria’s energy self-sufficiency and the eventual reduction of fuel costs.
Source: Legit.ng
