Africa’s richest man reveals he personally turned away Nigeria’s state oil company, as NNPC faces fresh calls to fix its own ailing refineries
Aliko Dangote has publicly revealed that he personally blocked attempts by the Nigerian National Petroleum Company Limited (NNPC) to acquire additional equity in the $20 billion Dangote Petroleum Refinery, disclosing that the refinery is instead being prepared for a public listing to broaden Nigerian ownership of the landmark industrial facility.
Dangote made the disclosure during an interview with Nicolai Tangen, Chief Executive Officer of the Norwegian Sovereign Wealth Fund, saying the state oil company — which already holds a 7.25 per cent stake acquired for $1 billion in 2021 — sought to increase its shareholding but was turned down.
“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 during the interview.
The NNPC had originally agreed to acquire a 20 per cent stake in the refinery but failed to pay the balance before a June 2024 deadline, resulting in its shareholding being capped at 7.25 per cent. The NNPC management had not publicly responded to Dangote’s latest claims at the time of this report.
The revelation triggered immediate reactions from industry voices. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), questioned why NNPC was seeking to invest more funds in a privately-owned refinery while the government-controlled Port Harcourt, Warri, and Kaduna refineries remain largely inactive, despite billions of dollars spent on rehabilitation.
“Why is NNPC trying to invest money in the Dangote refinery when it has three refineries that are not working? The NNPC should repair the pipelines and revive the refineries instead of eyeing the Dangote refinery,” Ukadike said.
A senior NNPC official, speaking anonymously, said the corporation remains proud of its current stake. “Whatever we own as a stake in Dangote as a national oil company is on behalf of the entire Nigeria. When the opportunity presents itself in the long term, yes — but right now, we are proud of the 7.2 per cent,” the official said.
A sector stakeholder argued, however, that Nigeria’s national interest is better served by NNPC holding a larger stake, noting that an asset of such strategic scale should not exist without meaningful government involvement.
Sources: allafrica.com | punchng.com