Dangote rejects NNPC’s bid for bigger refinery stake, pushes for wider ownership

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President/Chief Executive Officer of Dangote Group, Aliko Dangote, says he pushed back against attempts by the Nigerian National Petroleum Company Limited (NNPC Limited) to increase its equity stake in the $20 billion Dangote Petroleum Refinery.

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Mr Dangote disclosed this during a recent interview with Nicolai Tangen, chief executive officer of the Norwegian Sovereign Wealth Fund, where he spoke extensively on the refinery project, expansion plans and the challenges of building Africa’s largest industrial complex.

According to him, NNPC already owns about 7.25 per cent of the refinery, but attempts to acquire additional shares run contrary to the group’s strategy of broadening ownership and attracting a wider pool of investors.

He explained that the company’s priority is to ensure broader participation rather than allowing a single institution to consolidate more control.

“If you look at our refinery, the national oil company already owns 7.25 per cent, and they are trying to buy more while those that are saying that no, we want to now spread it and have everybody to be part of,” he said.

The NNPC management has yet to speak on the billionaire’s claim since the interview went public. Meanwhile, requests for comments sent to NNPC spokesperson, Andy Udey, on the allegation are yet to be replied to at the time of filing this report.

Challenges and strategies

Mr Dangote identified policy inconsistency by government and ownership concentration as some of the major risks facing the group, alongside political instability.

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He said Dangote Group’s long-term strategy is built around opening up its core businesses—including cement, refinery, petrochemicals, fertiliser and port operations—to more investors while guaranteeing strong returns.

According to him, the group now earns substantial foreign exchange from exports, making it possible to assure investors of dollar-denominated dividends.

“In the cement, refinery, petrochemical, fertiliser and port, we guarantee to pay you dividend in dollars because we are very well into exports. Eighty per cent of our revenue will be in dollars,” he said.

Mr Dangote noted that wholly owned Dangote Industries businesses have never paid dividends because profits are consistently reinvested to fund expansion.

He said the refinery has already demonstrated strong operational capacity, processing up to 661,000 barrels of crude per day, a performance he said has strengthened investor confidence in the group’s ability to execute large-scale projects.

He added that financial institutions are now more willing to back Dangote Group’s future expansion plans because of the successful delivery of the refinery.

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“A lot of financial institutions are saying that yes, if it is Dangote you are doing this project, we are there to back you because we know that you can deliver,” he said.

The refinery, commissioned after years of delays, financing constraints and infrastructure challenges, remains one of Africa’s largest industrial projects and forms the centrepiece of the group’s ambition to deepen regional refining operations and double capacity.

Last month, during a conference in Nairobi attended by regional leaders including President William Ruto of Kenya and President Yoweri Museveni of Uganda, Mr Dangote also signalled plans to partner with Kenya and Uganda to build a major oil refinery in Tanzania, modelled after his 650,000 barrels-per-day refinery in Nigeria.

“If they will support the refinery, we’ll build the identical one that we have in Nigeria,” he said, referring to discussions with the East African leaders.

Though the project is still at an early stage, he expressed strong confidence in its feasibility.

“It will work. There’s nothing that can stop it,” he said, drawing applause from participants at the conference.