Alhaji Aliko Dangote, President of the Dangote Group, has firmly dismissed proposals to acquire any of the idle state-owned refineries managed by the Nigerian National Petroleum Company Limited (NNPC), opting instead to expand his Lekki-based facility from 650,000 barrels per day (bpd) to 1.4 million bpd.
Speaking alongside billionaire businessman Femi Otedola during the announcement of the $20 billion refinery’s upgrade in Lagos, Dangote argued that purchasing the government assets would spark accusations of monopolistic practices. He positioned the expansion as a strategic move to leverage existing infrastructure while encouraging competition.
“Why acquire those facilities when it would only invite criticism?” Dangote remarked. “There are numerous affluent individuals and groups in Nigeria with substantial resources—perhaps even more liquid than ours—who should test their fortunes in this space. This would ensure broader participation and silence monopoly concerns.”
He specifically called on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to either bid for the dormant refineries or construct new ones. “DAPPMAN could step up and acquire some of these assets if they’re available, or build their own. That way, multiple players can align with the President’s vision for local refining,” he added.
Dangote highlighted assurances from President Bola Tinubu for reliable crude oil supplies to bolster the sector. “The President is committed to refining all domestic crude into finished products. Others should seize this moment. We’re doubling our capacity—actually pushing beyond to 1.4 million bpd—because our setup allows it. Around 30 entities are exploring partnerships with NNPC to revive the old plants, which would contribute to our goal of a $1 trillion economy.”
The mogul referenced a failed 2007 deal under former President Olusegun Obasanjo, where his consortium briefly acquired the Port Harcourt and Kaduna refineries before the incoming administration of Umaru Yar’Adua reversed it. Managers at the time allegedly convinced Yar’Adua the sale undervalued the assets as a “farewell gesture.” Dangote noted that subsequent rehabilitation efforts have cost taxpayers approximately $18 billion, yet the facilities remain non-operational.
In May, he had expressed skepticism about their revival, a view echoed by industry groups like the Manufacturers Association of Nigeria, which has labeled the refineries economic burdens and advocated full privatization.
NNPC Group Chief Executive Bayo Ojulari countered that the Port Harcourt, Warri, and Kaduna plants will eventually resume operations. The old Port Harcourt refinery (60,000 bpd) halted production six months after reopening, while Warri shut down just a month after its December relaunch under former CEO Mele Kyari.
Government spending on maintenance has been extensive: $1.4 billion for Port Harcourt in 2021, $897 million for Warri, and $586 million for Kaduna. Additional outlays include N100 billion in 2021 (with N8.33 billion monthly) and $396.33 million from 2013 to 2017.
On Wednesday, NNPC announced a comprehensive review of the refineries’ technical and commercial feasibility, aiming to transform them into profitable entities capable of supplying domestic fuel needs in line with global standards.
