President of the Dangote Group, Aliko Dangote, has revealed that the company rejected attempts by the Nigerian National Petroleum Company Limited to acquire additional shares in the Dangote Petroleum Refinery.
Dangote disclosed this during an interview with Nicolai Tangen, stating that the refinery’s management decided against the proposal because it plans to go public and allow more Nigerians to own stakes in the multi-billion-dollar facility.
“The national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it,” Dangote said.
The revelation comes amid a significant increase in petrol supply from the $20 billion Lekki-based refinery.
According to data analysed from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, local petrol supply rose to 3.18 billion litres in the first quarter of 2026, while imports dropped sharply to 965.52 million litres.
Industry records indicate that the Dangote refinery remains the only facility currently producing Premium Motor Spirit commercially at that scale in Nigeria.
The findings further showed that the refinery supplied over ₦3.2 trillion worth of petrol domestically during the review period, with the average ex-depot price hovering around ₦1,000 per litre.
NNPC’s reduced stake
The refinery ownership issue dates back to 2021 when the NNPC acquired a 7.25 per cent stake for $1 billion, with plans to eventually increase its holding to 20 per cent.
However, Dangote disclosed that the national oil company failed to complete payment for the remaining shares before the deadline expired.
“The agreement was actually 20 per cent… and they did not pay the balance,” Dangote had earlier explained in 2024.
Former NNPC Group Chief Executive Officer Mele Kyari later reduced the company’s planned equity participation from 20 per cent to 7.25 per cent.
Global oil crisis boosts revenue
Dangote also noted that the ongoing tensions between the United States and Iran, which disrupted parts of the global oil market, contributed to higher export revenues for the refinery.
He stated that the company’s export-driven strategy now allows investors in its businesses—including cement, petrochemicals, fertiliser, and refining—to earn dividends in dollars.
“Eighty per cent of our revenue will be in dollars,” he said.
Dangote on business strategy
Speaking about his personal commitment to industrialization, Dangote revealed that he sold properties in the United States and the United Kingdom to focus entirely on building industries in Nigeria.
“When I decided to go into industry, I sold all my properties in the US and UK to concentrate in Nigeria,” he said.
He added that his investment philosophy is rooted in backward integration—producing locally what Nigeria previously depended on imports for.
The latest figures indicate a major turnaround in Nigeria’s fuel supply dynamics.
In the first quarter of 2025, imports accounted for more petrol supply than local refining. However, by Q1 2026, domestic refining contributed 76.7 per cent of total supply, while imports dropped to 23.3 per cent.
Analysts say the development signals a potential long-term reduction in Nigeria’s dependence on imported petroleum products.
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