The President and Chief Executive Officer of the Dangote Group, Alhaji Aliko Dangote, has revealed that the Nigerian National Petroleum Company Limited (NNPC) has the opportunity to expand its current 7.2 per cent stake in the Dangote Refinery. However, he emphasized that such a move would only be considered after the refinery has fully demonstrated its operational capacity and potential.
Dangote made this known in a recent interview with S&P Global Commodity Insights, stating that while NNPC remains welcome to increase its stake, discussions on that front would take place only after the refinery’s next phase of growth is well underway. “The door remains open for the Nigerian National Petroleum Company to raise its stake after cutting it down to 7.2 per cent, but not before the next growth stage begins. I want to show what this refinery can achieve first, then we can have that conversation,” he said.
A close associate of Dangote also indicated that the company would tread carefully before allowing further participation from NNPC, stressing that strategic caution was essential at this stage of the refinery’s development. Dangote further disclosed that within the next year, about 5–10 per cent of the refinery’s shares would be listed on the Nigerian Stock Exchange. According to him, the Dangote Group does not intend to retain more than 65–70 per cent ownership, adding that shares will be released gradually based on market interest and investor response.
The NNPC had earlier reduced its equity in the 650,000-barrel-per-day refinery from 20 per cent to 7.2 per cent. The former spokesperson for NNPC, Olufemi Soneye, explained in 2024 that the decision was strategic, as the company redirected funds to support the development of compressed natural gas (CNG) infrastructure across the country. Speaking during an appearance on Berekete Family Radio, Soneye stated that the NNPC chose to prioritize investment in CNG because it offers Nigerians a cheaper and cleaner energy option during the ongoing energy transition.
He highlighted that Nigerians could refuel their vehicles for as little as N10,000 using CNG, making it a more affordable alternative to petrol. “We reduced our stake in the Dangote Refinery to invest in CNG. Gas is cheaper in Nigeria, and globally, there is a shift toward cleaner and cost-effective energy solutions. That’s why NNPC is building CNG stations nationwide,” Soneye said.
Meanwhile, the newly appointed Group Chief Executive Officer of NNPC, Bayo Ojulari, recently reaffirmed to Argus Media that the company remains committed to increasing its ownership in the Dangote Refinery. Ojulari described the refinery as a vital asset for Nigeria’s energy security and industrial growth.
Many Nigerians were taken aback when Dangote disclosed that NNPC had reduced its stake to just 7.2 per cent. The revelation sparked discussions on whether the state oil firm might reconsider its position in the future, particularly given the refinery’s strategic importance to the country’s fuel supply chain.
With the refinery’s operations expected to strengthen Nigeria’s refining capacity and reduce dependence on imported fuel, industry watchers believe NNPC’s potential reinvestment could further solidify collaboration between the public and private sectors in achieving national energy goals.
