Billionaire industrialist Aliko Dangote has indicated a willingness to allow the Nigerian National Petroleum Corporation Limited (NNPC Ltd) to increase its current 7.2% stake in the Dangote Refinery, contingent upon the facility’s next phase of growth demonstrating its full potential.
In an interview with S&P Global, Dangote revealed plans to list 5–10% of the refinery’s shares on the Nigerian Stock Exchange within a year, signaling a gradual move toward broader investor participation. This strategic move aims to enhance transparency and attract both local and international investors to the project.
The NNPC Ltd, which had initially acquired a 20% stake in the $20 billion Dangote Refinery for $2.76 billion, reduced its ownership to 7.2% due to its inability to fulfill the financial obligations associated with the purchase. According to Naija247news, the NNPC Ltd failed to pay the balance of their share, which was due in June 2024, leading to the reduction in its stake.
Despite the reduced stake, the NNPC Ltd has expressed interest in increasing its equity in the refinery as operations ramp up. Naija247news understands that discussions regarding the potential increase in stake will be considered after the refinery’s next growth phase proves its full potential.
According to Naija247news, the Dangote Refinery, which commenced operations in January 2024, plans to ramp up its capacity from 650,000 barrels per day (bpd) to 700,000 bpd by the end of this year. The long-term goal is to increase output to 1.4 million bpd, surpassing the world’s largest refinery in Jamnagar, India, which produces 1.36 million bpd.
Naija247news reports that beyond refining, the company is also expanding its chemical production. Dangote disclosed plans to boost polypropylene output from one million to 1.5 million metric tonnes annually and develop new projects in base oils and linear alkylbenzene.
Commenting on ongoing maintenance operations, Dangote said most technical issues had been resolved but added that a one-month shutdown might be required for final adjustments. He noted that the maintenance schedule would be timed to avoid disruption during the end-of-year surge in fuel demand.
According to Naija247news, the refinery has also faced challenges, including attempted sabotage incidents. Dangote highlighted that there have been 22 recorded sabotage attempts, including efforts to start fires and manipulate operational equipment. He credited the facility’s automated systems and fire protection for preventing damage.
Naija247news gathered that despite these challenges, the Dangote Refinery continues to play a pivotal role in Nigeria’s energy sector, contributing to the nation’s self-sufficiency in refined petroleum products and positioning the country as a significant player in the global energy market.
As the refinery progresses through its growth phases, the potential for increased stakeholder participation, including a possible return of the NNPC Ltd to a larger stake, remains a topic of interest for investors and policymakers alike.
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Reporting by Agnes Ekebuike Editor, Naija247news in Lagos, Nigeria.
