Aliko Dangote, President of the Dangote Group, has outlined new conditions for the Nigerian National Petroleum Company Limited (NNPCL) to increase its stake in the 650,000-barrel-per-day Dangote Refinery. In a recent interview with S&P Global Commodity Insights, Dangote stated that NNPCL’s potential expansion of its stake would only occur after the refinery has demonstrated its capabilities.

The refinery, which is currently in its initial phase of operation, has faced recent operational setbacks, including a glitch in fuel supply, as reported by Bloomberg. This has resulted in complaints from petroleum product marketers regarding non-supply of petrol despite payments made to Dangote Refinery.

Dangote emphasized the importance of listing the refinery on the Nigerian Exchange Limited, and expressed his intention to retain a 70% stake in the company. “We don’t want to keep more than 65-70%,” he said. This development comes after NNPCL reduced its stake in Dangote Refinery from 20% to 7.2% in 2024, citing a desire to invest in compressed natural gas.

The door remains open for NNPCL to boost its stake in the future, but only after the refinery’s next phase of growth is underway. Dangote’s announcement highlights the ongoing evolution of the refinery’s operations and ownership structure. As the refinery continues to navigate operational challenges and expand its capacity, its relationship with NNPCL and other stakeholders will be closely watched. The listing of the refinery on the Nigerian Exchange Limited is expected to be a key milestone in its development, and Dangote’s commitment to retaining a majority stake underscores his confidence in the company’s potential.