Aliko Dangote Says NNPC Can Raise Its Equity Stake in Dangote Refinery

Africa’s richest man, Alhaji Aliko Dangote, has announced that the Nigerian National Petroleum Company Limited (NNPC Ltd) can increase its ownership stake in the Dangote Petroleum Refinery if it wishes to strengthen its investment in the project. Dangote made this statement during a recent interaction with journalists at the refinery complex in Ibeju-Lekki, Lagos, where he discussed the facility’s operations, crude supply, and Nigeria’s energy outlook.

Dangote revealed that NNPC currently holds a 20 percent equity stake in the refinery but has the right to expand its interest under the terms of their agreement. He explained that such a move would be mutually beneficial, deepening collaboration between the private and public sectors while ensuring Nigeria’s long-term energy stability.

“The NNPC is already a shareholder with 20 percent ownership, and it can decide to increase its stake at any time,” Dangote said. “Our main goal is to ensure Nigeria’s full self-sufficiency in refined petroleum products, and we welcome partnerships that help achieve that vision.”

He added that the refinery, with a capacity of 650,000 barrels per day, is designed to meet both domestic demand and export needs. Dangote emphasised that the project was conceived to change Africa’s refining narrative and help Nigeria save billions of dollars spent on importing fuel each year.

Industry analysts have welcomed the development, saying it would strengthen national energy security. They observed that if NNPC increases its stake, it could help stabilise the local fuel supply chain and reduce the country’s dependence on external refineries.

Energy expert, Dr. Bala Ahmed, noted that deeper state participation would give the government more leverage in ensuring that refined products remain affordable and available to Nigerians. “This kind of collaboration is what Nigeria needs — private innovation backed by government participation,” he said.

Dangote, addressing recent market concerns, dismissed speculation that the refinery was facing crude supply challenges, explaining that the company continues to work with NNPC Ltd and local producers to guarantee adequate supply. He stressed that the refinery’s operations were guided by transparency, competitiveness, and national interest.

“We have structured our operations in a way that will ensure steady supply. The refinery is not only a commercial venture; it is a strategic investment for Nigeria and the African continent,” he noted.

He also highlighted that the refinery’s products — including diesel, aviation fuel, and petrol — would meet global standards, while the export of surplus volumes would generate foreign exchange for the country. According to Dangote, once the facility reaches full capacity, it will satisfy Nigeria’s entire fuel demand and export to at least 12 African countries.

NNPC Ltd, as one of the major suppliers of crude oil to the refinery, has also indicated its commitment to a strong partnership. A senior NNPC official, who spoke on condition of anonymity, stated that discussions on expanding the company’s equity interest were ongoing, aligning with the government’s economic diversification plans.

The Dangote Refinery, worth over $20 billion, is the largest single-train refinery in the world. It is projected to significantly reduce Nigeria’s import bill, create thousands of jobs, and boost GDP growth. The project also aligns with the government’s drive to position Nigeria as a regional refining and petrochemical hub.

Economists believe that NNPC’s potential increase in ownership could give the government greater influence in refining policies and pricing mechanisms, ensuring a balance between profitability and affordability for Nigerians. It could also enhance public trust in the refinery’s operations, given its strategic role in stabilising domestic fuel supply.

Speaking further, Dangote said the refinery was open to both local and international investors who share the vision of transforming Africa’s energy landscape. He expressed optimism that the facility would spur industrial growth and attract more investments into Nigeria’s oil and gas downstream sector.

“Our goal is not just to refine crude but to refine opportunities — for jobs, growth, and sustainable development. This refinery will contribute significantly to Nigeria’s economic transformation,” he said.

He also confirmed that the company is working closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with regulatory and environmental standards.

Dangote expressed gratitude to the federal government and Nigerians for their support throughout the refinery’s development, assuring that his company remains committed to maintaining the highest operational standards. “This project is for Nigeria. It belongs to all of us,” he stated.

Industry stakeholders have praised Dangote’s openness to NNPC’s potential expansion, calling it a positive step toward shared ownership and accountability. They added that such collaboration between public and private entities is essential to ensuring Nigeria’s transition to energy self-sufficiency.

As discussions continue, both Dangote Industries and NNPC Ltd are expected to finalise new frameworks that could lead to increased state participation. The move is seen as a vital signal of confidence in Nigeria’s refining future, underscoring the shared commitment to industrial growth and economic stability.

 

With full operations expected to ramp up in the coming months, the Dangote Refinery remains a beacon of hope for Nigeria’s energy independence, job creation, and regional trade leadership.