Aliko Dangote has confirmed that his group rejected an attempt by the Nigerian National Petroleum Company Limited to increase its equity stake in the US$20 billion Dangote Petroleum Refinery, as the company prepares for a planned public listing aimed at widening ownership among Nigerians.
The decision, according to Dangote, was driven by a long term strategy to democratise ownership of the massive refinery project and ensure broader participation in one of Africa’s most significant industrial investments. He explained that the company intends to list the refinery on the stock market, allowing more citizens and institutional investors to acquire shares.
Aliko Dangote stated that the preference is to “spread it and have everybody be part of it,” signalling a shift toward public ownership rather than concentrated control by a few strategic partners.
The dispute over equity comes after earlier arrangements in which the Nigerian National Petroleum Company Limited was expected to acquire up to a 20 percent stake in the refinery through a financing deal agreed in 2021. However, according to Dangote, the state oil company only completed payments corresponding to roughly 7.25 percent ownership, with outstanding obligations remaining unmet.
The Dangote Petroleum Refinery is widely regarded as the largest refinery in Africa and one of the most ambitious single train refining facilities in the world, with an installed capacity of more than 650,000 barrels per day. Expansion plans could potentially raise capacity to as much as 1.4 million barrels per day in the future, further strengthening Nigeria’s position in global energy markets.
The refinery has been described as a transformational project for Nigeria’s downstream oil sector, with the potential to significantly reduce fuel imports, improve domestic supply security, and generate foreign exchange through exports of refined petroleum products.
Aliko Dangote has also indicated that the planned listing of the refinery could involve the sale of up to 10 percent of the company, potentially valuing the offering at around $5 billion. The move would mark one of the largest industrial public listings in Africa if successfully executed.
The disagreement over equity reflects broader tensions between private sector led industrial mega projects and state participation in strategic national assets. While state oil companies often seek significant stakes in such ventures, private developers may prioritise operational control and flexible capital raising strategies.
Dangote has previously expressed concern about policy inconsistency and regulatory uncertainty in Nigeria, describing them as major risks to large scale industrial investments. His push for public listing is widely seen as an attempt to diversify ownership while maintaining operational efficiency and attracting long term investors.
The Nigerian National Petroleum Company Limited has not issued a detailed public response to the latest remarks, but the evolution of its stake in the refinery highlights the complexities of financing and executing large infrastructure projects in emerging markets.
As Nigeria continues to position itself as a refining hub for West Africa, the outcome of the planned listing and ownership structure of the Dangote Petroleum Refinery will likely have significant implications for energy security, investment flows, and the future structure of the country’s oil sector.
