"There Can Never Be a Buyer": Dangote Speaks on Investors' Interest in Nigeria's 3 Refineries
- Dangote says Nigeria’s refineries would fail to attract buyers due to an unfriendly investment climate caused by regulatory mismanagement
- He blamed past policy decisions and poor regulatory mismanagement for discouraging both local and foreign investors
- Dangote added that the continued underperformance of the Port Harcourt, Warri, and Kaduna refineries has forced Nigeria to rely heavily on fuel imports
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
President and Chief Executive Officer of Dangote Group, Aliko Dangote, has expressed doubts that Nigeria’s state-owned refineries would attract any investors if they were offered for sale, pointing to deep-seated regulatory and investment challenges within the sector.
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Speaking at a media briefing in Lagos on Sunday, December 14, 2025, Dangote traced the current difficulties in the downstream petroleum industry to policy errors made under the previous administration.
He argued that appointing a market participant to oversee regulation created a conflict that undermined the sector’s stability.
According to Dangote, assigning a trader the role of regulator during the administration of former President Muhammadu Buhari was a fundamental mistake.
He stressed that such a combination weakens oversight and discourages serious investment, as it creates uncertainty for both local and international players.
Poor investment climate scaring off buyers
Dangote warned that the fallout from this regulatory imbalance has been costly for the country, as it has eroded investor confidence and worsened Nigeria’s energy challenges.
He said the current business environment is unfriendly to long-term investments, particularly in refinery operations that require significant capital.
He maintained that even if the Nigerian National Petroleum Corporation (NNPC) Limited decided to divest from its refineries, finding buyers would be nearly impossible under existing conditions.
He said:
“The higher price is that nobody will come and invest in this sort of thing. Even if the NNPC today wants to sell the refineries, there can never be a buyer. Why? Because the environment is not conducive for anybody to come and put his money and set up a refinery.”
According to him, investors are unlikely to commit funds in a sector where policy inconsistency and regulatory risks remain unresolved.
Nigeria’s government-owned refineries located in Port Harcourt, Warri, and Kaduna have a combined processing capacity of about 445,000 barrels per day.
However, years of poor performance and repeated spending on Turn Around Maintenance (TAM) have failed to restore full operations, leaving the country heavily dependent on imported petroleum products.
Dangote Refinery set for Nigerian stock exchange listing
Meanwhile, Legit.ng earlier reported that the Dangote Refinery is expected to be listed on Nigeria’s stock market, a move that will enable Nigerians to own equity in the multibillion-dollar facility.
Dangote said the planned listing reflects a commitment to broadening local participation in major industrial projects.
He also noted that the refinery is currently capable of meeting the country’s entire demand for diesel and aviation fuel, while still producing surplus volumes for export to international markets.
Source: Legit.ng
