Aliko Dangote Announces Big Changes to Nigeria's Petroleum Sector

• Aliko Dangote announced plans for a major shakedown in Nigeria’s oil industry, which will focus on restructuring the downstream sector
• He emphasized that the refinery is set to undergo significant expansion, with plans to list it on the stock exchange this year
• Dangote also praised President Tinubu's economic policies, highlighting efforts to boost domestic production and improve national infrastructure

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Aliko Dangote, the president of the Dangote Group and the man behind the Dangote Petroleum Refinery, has promised to announce a "major shakedown" soon, signalling significant changes in the oil industry that Nigerians should anticipate.

Dangote claims that the shakedown aims to completely restructure the downstream industry, rather than reduce petroleum prices. In a conversation with reporters following President Bola Tinubu's visit to his $20 billion refinery in Lekki, Lagos, the businessman revealed this.

When asked to provide more details about the "shakedown" Nigerians should expect from his refinery, Dangote declined to give specifics.

He said:

“Now that the President has visited and given us additional energy, we will inform you, and you will hear from us soon. This will be one of the major shakedowns in the entire country. It is not a price reduction; it will be a total overhaul of the downstream.”

He added that the upheaval would cause the refinery to embark on a “massive trajectory.”

“I told the President that he hasn't seen anything yet; we are going on a massive trajectory, much bigger than what you’ve seen here. If you come back in the next five years, the refinery will be on the back burner,” Dangote said.

The industrialist also reiterated his plan to list his refinery on the stock exchange this year, starting with the fertiliser company.

Nonetheless, he praised President Tinubu's economic policies, claiming that they had created an environment more favourable for long-term investment and industrial expansion.

Dangote also commended Tinubu for his "Nigeria First Policy," which aims to reduce reliance on imported goods and services while supporting domestic content. He believes this strategy aligns with the Dangote Group's corporate vision of producing goods that Nigerians consume and promoting self-sufficiency to meet their fundamental needs.

Furthermore, Dangote credited the Tinubu administration for enhancing national infrastructure through initiatives such as the Refurbishment Investment Tax Credit Scheme and the Nigerian Road Infrastructure Development Fund.

Dangote pointed out that eight significant roads, including the Lekki-Epe corridor, had been funded under similar initiatives within the same cluster, with a total cost of N900 billion.

Dangote Refinery plans to sell shares to Nigerians

Legit.ng reported that the Nigerian Exchange Group (NGX) is actively preparing for the listing of Dangote Petrochemicals, with the target set for the second quarter of 2025.

Africa's richest man is said to have applied to list the company publicly, giving Nigerians a chance to become part-owners through investments.

Umaru Kwairanga, NGX Chairman, in a statement on Friday, June 6, said that the anticipated listing aligns with President Bola Tinubu’s economic agenda, which aims to expand Nigeria’s Gross Domestic Product (GDP) to $1 trillion by 2030.

Source: Legit.ng