Dangote refinery stake: Aliko Dangote says NNPC can increase its 7.2% share once the refinery’s performance and growth are fully demonstrated

Dangote refinery stake has once again dominated Nigeria’s economic conversation after Alhaji Aliko Dangote revealed that the Nigerian National Petroleum Company Limited (NNPC) may be allowed to increase its current 7.2 per cent holding in the refinery once it proves its worth.

Also read: Nigeria imports 69% of petrol despite Dangote refinery output

In a candid conversation with S&P Global Commodity Insights, the President of the Dangote Group said the decision to expand NNPC’s stake would come only after the refinery’s next phase of growth demonstrates its full capacity.

“The door remains open for Nigerian National Petroleum Co. to boost its stake after trimming its interest to 7.2 per cent, but not before its next phase of growth is well underway.

I want to demonstrate what this refinery can do, then we can sit down and talk,” Dangote said.

A close associate of the billionaire industrialist explained that the company would proceed cautiously before welcoming further participation from NNPC.

Within the next year, the Dangote refinery stake is expected to evolve as the business prepares to list between 5 and 10 per cent of its shares on the Nigerian Stock Exchange.

“We don’t want to keep more than 65 to 70 per cent,” Dangote noted, adding that the public listing would be incremental and dependent on market demand.

The NNPC had earlier reduced its interest from 20 per cent to 7.2 per cent, a move that drew surprise from Nigerians.

The company’s former spokesperson, Olufemi Soneye, clarified in 2024 that the decision was strategic, allowing NNPC to redirect funds toward compressed natural gas (CNG) infrastructure as part of its clean energy transition.

Soneye said the state-owned oil firm opted for investment in CNG because it was a more affordable and environmentally friendly fuel option.

He explained that Nigerians could power their vehicles with N10,000 worth of CNG for up to two weeks, compared to the same cost for petrol that lasts far less.

“The reason for reducing our stake in the Dangote refinery is because we wanted to invest in CNG. It’s cheaper and more sustainable, so we’re building stations nationwide,” Soneye said.

The current NNPC Group Chief Executive Officer, Bayo Ojulari, has since reaffirmed the company’s interest in expanding its involvement with the Dangote refinery stake, describing the facility’s 650,000-barrel-per-day capacity as a key asset for Nigeria’s energy independence.

For Dangote, the refinery’s success is about more than production — it represents a new dawn in Africa’s industrial drive.

Also read: Dangote opens door for NNPC stake increase in refinery

Once the plant’s full potential is proven, he said, discussions with NNPC on a greater partnership would be revisited in what could become one of the most powerful alliances in Nigeria’s energy history.