Dangote rejects NNPC bid for bigger stake in refinery

Africa’s richest businessman, Aliko Dangote, says the Nigerian National Petroleum Company Limited sought to increase its stake in the $20 billion Dangote Petroleum Refinery, but the request was declined as the group plans to broaden ownership through a future public listing.

Speaking during an interview with Nicolai Tangen, Dangote said the refinery’s existing 7.25 per cent stake held by NNPC would remain unchanged for now.

“The national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no. We want everybody to be part of it,” Dangote said.

The remarks come as the Lekki-based refinery continues to reshape Nigeria’s downstream oil market. Industry data reviewed by Pluboard show domestic petrol supply from the refinery reached 3.18 billion litres in the first quarter of 2026, while fuel imports dropped sharply to 965.52 million litres over the same period.

With average ex-depot petrol prices hovering around ₦1,000 per litre between January and March, the refinery’s domestic fuel supply during the quarter was valued at more than ₦3.2 trillion.

NNPC originally agreed in 2021 to acquire a 20 per cent stake in the refinery for $2.76 billion, paying $1 billion upfront for 7.25 per cent and retaining an option to purchase the remaining shares by June 2024. The company later opted to retain only the minority stake.

Dangote said policy inconsistency remains one of the biggest risks facing large-scale investments in Nigeria, though he dismissed concerns about political instability.

He also disclosed that shareholders in the group’s major businesses—including refining, petrochemicals, cement and fertiliser—could receive dividends in dollars as export earnings expand.

“About 80 per cent of our revenue will be in dollars,” he said.

The refinery, which has a nameplate capacity of 650,000 barrels per day, is now operating above that threshold, according to Dangote. He said the plant recently processed 661,000 barrels daily and could expand to 1.4 million barrels per day within the next 30 months.

The billionaire industrialist said the refinery’s successful commissioning had strengthened investor confidence and improved access to financing from African and international lenders, including Afreximbank, Africa Finance Corporation and major Nigerian banks.

Rising global energy prices linked to tensions in the Middle East have also boosted earnings across the group’s refining and fertiliser businesses.

Dangote said fertiliser prices climbed from about $400 per tonne earlier this year to roughly $850, while polypropylene prices surged from around $900 to nearly $3,000 in some international markets. He added that the refinery’s aviation fuel production—currently estimated at 20 million litres daily—is already oversold through mid-July.

On crude sourcing, Dangote said about 56 per cent of supply currently comes from Nigeria, with additional volumes imported from Angola, Libya and the United States. The refinery purchases roughly 21 cargoes of crude monthly.

Dangote also outlined an ambitious expansion plan for the group, targeting $100 billion in annual revenue by 2030 and a market valuation exceeding $250 billion. According to him, the group plans to inject about $45 billion into its operations over the coming years, supported by strong cash generation and external financing.

“Our target is to build a business generating over $30 billion in EBITDA by 2030,” he said.