Aliko Dangote, president of the Dangote Group, has set 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 said that any expansion of NNPCL’s share would only occur after the refinery has proven its capabilities.
The refinery, now in its initial phase of operation, has encountered operational setbacks, including a fuel‑supply glitch reported by Bloomberg. This disruption has led petroleum product marketers to complain about the non‑supply of petrol despite having paid the Dangote Refinery.
Dangote also stressed the importance of listing the refinery on the Nigerian Exchange Limited and reiterated his intention to retain a 70 % stake in the company, adding, “We don’t want to keep more than 65‑70 %.” Earlier in 2024, NNPCL reduced its holding from 20 % to 7.2 %, citing a shift toward investing in compressed natural gas. While the door remains open for NNPCL to increase its stake in the future, Dangote said this would only happen once the refinery’s next phase of growth is underway.
These developments highlight the evolving operational and ownership landscape of the refinery. As it continues to address challenges and expand capacity, its relationship with NNPCL and other stakeholders will be closely watched. The planned listing on the Nigerian Exchange Limited is expected to be a key milestone, and Dangote’s commitment to maintaining a majority stake underscores his confidence in the refinery’s potential.
Comments are closed for this story.