Dangote Rejects NNPC Stake Increase for Planned Refinery IPO

Aliko Dangote, Africa’s richest man and head of the Dangote Group, has revealed he declined a proposal from the Nigerian National Petroleum Company Limited (NNPC) to increase its stake in the $20 billion Dangote Petroleum Refinery. The decision, disclosed during a recent interview, is part of a broader strategy to broaden ownership ahead of a planned public listing and to ensure wider investor participation in Africa’s largest industrial complex.

The NNPC currently holds a 7.25 percent equity in the Lekki-based refinery. Dangote stated that while the state oil company sought to acquire additional shares, his group opted for a structure that would allow more investors, including ordinary Nigerians, to own a stake when the refinery goes public. He identified inconsistent government policies as a significant business risk, alongside ownership concentration.

The refinery, which began commercial operations in late 2023, is now processing up to 661,000 barrels of crude oil per day, surpassing the combined output of Nigeria’s state-run refineries. Its operation has reduced the nation’s reliance on imported refined products, supplying the domestic market with gasoline, diesel, jet fuel,...