Dangote Group President Alhaji Aliko Dangote has confirmed that the Nigerian National Petroleum Company Limited has the opportunity to raise its 7.2 per cent ownership in the Dangote refinery.
The business magnate clarified that such expansion would occur only after he demonstrates the facility’s operational capabilities to the state energy firm.
Dangote disclosed this position in a recent interview with S&P Global Commodity Insights. He stressed the importance of showcasing the refinery’s achievements before entering negotiations on NNPC’s potential stake increase.
“I want to demonstrate what this refinery can do, then we can sit down and talk,” the industrialist remarked. Sources close to Dangote indicated that the company would adopt a careful approach before welcoming further NNPC involvement.
Within the coming year, the refining operation intends to offer 5–10 per cent of its equity on the Nigerian stock exchange.
Dangote clarified that his group plans to maintain between 65–70 per cent ownership, with additional shares released gradually depending on investor interest and market capacity.
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NNPC had earlier scaled down its participation in the Dangote refinery from an initial 20 per cent to 7.2 per cent.
Olufemi Soneye, former NNPC spokesperson, revealed last year that the stake reduction enabled the company to channel resources into developing compressed natural gas infrastructure nationwide.
Soneye stated that NNPC identified CNG as a cheaper energy option for Nigerian consumers, especially amid the global energy transition.
He highlighted that motorists could spend N10,000 on CNG and drive for two weeks, representing significant savings compared to petrol expenses.
“The reason for reducing our stake in the Dangote refinery is that we wanted to invest in CNG. We observed that CNG is very cheap, and all over the world, people are investing in clean and cheaper alternative energy,” Soneye explained during an August 2024 appearance on Berekete Family Radio.
He mentioned that NNPC is establishing numerous CNG stations across the country.
New NNPC Group Chief Executive Officer Bayo Ojulari recently informed Argus Media that the corporation maintains its commitment to expanding its position in the 650,000-barrel-per-day facility.
The public reacted with surprise in 2024 when Dangote announced that NNPC had trimmed its refinery investment to 7.2 per cent.
The Dangote refinery stands as one of the largest petroleum refining complexes in Africa and aims to reshape Nigeria’s fuel distribution landscape.
