Aliko Dangote, President of the Dangote Group, has turned down a request by the Nigerian National Petroleum Company Limited (NNPC) to expand its current 7.25% stake in the $20 billion Dangote Petroleum Refinery.
Dangote disclosed this decision during a recent interview with Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund. He explained that the refusal stems from plans to take the refinery public, giving ordinary Nigerians and other investors the opportunity to own shares in the facility.
“We want to spread it and have everybody be part of it,” he stated.
NNPC’s Reduced Stake
NNPC had initially agreed to acquire a 20% stake in the refinery but only paid for 7.25%, which it secured for $1 billion in 2021. The national oil company failed to meet the payment deadline for the remaining shares by June 2024, resulting in its stake remaining at the lower level.
Strong Performance of the Refinery
The Lekki-based refinery has recorded impressive operational results. In the first quarter of 2026, it supplied 3.18 billion litres** of petrol to the domestic market, significantly reducing petrol imports to just 965.52 million litres during the period.
The average ex-depot price of petrol from the refinery between January and March 2026 stood at approximately N1,000 per litre, generating over N3.2 trillion in domestic revenue. Additionally, the refinery has ramped up exports of refined products, benefiting from global supply disruptions caused by the US-Iran conflict.
Dollar Dividends and Funding Strategy
Dangote revealed that future investors in the refinery, as well as in the group’s cement, petrochemicals, and fertiliser businesses, will receive dividends in US dollars. This is due to the group’s strong export orientation, with about 80% of revenue expected to be generated in foreign currency.
He acknowledged the support received from Nigerian banks and international financial institutions, including Afreximbank, Africa Finance Corporation, Zenith Bank, Access Bank, UBA, Standard Bank of South Africa, and Standard Chartered Bank, during the construction phase. Although the original plan was to fund the project largely through internally generated funds, naira devaluation forced greater reliance on debt financing.
Personal Commitment to Nigeria
In the interview, the Africa’s richest man shared personal sacrifices made to focus on his businesses in Nigeria. He sold his properties in the United States and the United Kingdom, choosing instead to live simply and channel his energy into building industries that address national needs.
Dangote emphasised that his business decisions are guided by a clear vision of what the country requires, with specific targets set for the future, including his 2030 goals.
The development underscores Dangote’s ambition to broaden ownership of the refinery beyond government entities and create wider economic participation through a public listing.
