IPMAN criticises NNPC over plans to increase its Dangote refinery stake while government refineries remain inactive

The Independent Petroleum Marketers Association of Nigeria has criticised the Nigerian National Petroleum Company Limited over its reported attempt to increase its stake in the Dangote Petroleum Refinery despite the continued poor performance of government-owned refineries.

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The National Publicity Secretary of IPMAN, Chinedu Ukadike, questioned the move while reacting to comments by Aliko Dangote that the refinery rejected requests by the NNPC to acquire more shares in the $20bn facility.

Dangote disclosed this during an interview with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Nicolai Tangen, monitored on Wednesday.

Reacting to the development, Ukadike argued that the national oil company should prioritise reviving the Port Harcourt, Warri and Kaduna refineries instead of pursuing additional ownership in a privately-owned refinery already operating successfully.

“Why is NNPC trying to invest money in the Dangote refinery when it has three refineries that are not working?” Ukadike asked.

“The NNPC did not revive our refineries, but they want to look for where the refinery is already working to put money into it. Does that make sense?”

The controversy surrounding the NNPC Dangote refinery stake intensified after Dangote revealed that the national oil company sought to increase its existing 7.25 per cent ownership in the refinery.

According to Dangote, the request was rejected because the company intends to eventually list the refinery publicly and allow wider Nigerian participation through share ownership.

“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.

Ukadike maintained that Dangote had every right to reject the request if it did not align with his business objectives.

“If Dangote refused to sell more stakes to NNPC, he must have his reasons. Dangote is a businessman. He doesn’t want issues, unnecessary crises, and nepotism,” he stated.

The IPMAN spokesman further urged the NNPC to focus on repairing pipelines and rehabilitating the nation’s refineries instead of seeking more shares in the Dangote facility.

The NNPC had initially planned to acquire a 20 per cent stake in the refinery in 2021 but later reduced its holding to 7.25 per cent after failing to complete payment before the June 2024 deadline.

Dangote previously explained that the oil company retained only the portion for which payment had already been made.

Meanwhile, a stakeholder in the petroleum industry, who requested anonymity due to the sensitivity of the issue, argued that Nigeria would benefit more if the NNPC held a larger stake in the refinery.

According to the stakeholder, greater government participation would ensure national oversight in a refinery with significant influence on the country’s energy and economic stability.

The source added that Dangote’s decision appeared aimed at maintaining stronger control over the refinery as the company prepares for future public listing plans.

A senior official of the Nigerian National Petroleum Company Limited also defended the current relationship between both organisations, describing the existing collaboration as beneficial to Nigeria.

“The NNPC is proud and happy that we own a 7.2 per cent stake in Dangote,” the official said anonymously.