NNPC no longer owns 20% of Dangote Refinery – Aliko Dangote

Aliko Dangote, the Founder and Chairman of the Dangote Group, announced that the Nigerian National Petroleum Corporation (NNPC) Limited no longer holds a 20 percent stake in the Dangote Refinery.

During a media briefing at the refinery on Sunday, Dangote explained that the NNPC now owns only 7.2 percent of the refinery. This reduction in stake resulted from NNPC’s failure to pay the remaining balance of their share, which was due in June.

Dangote revealed that although NNPC had committed to providing the funds, they failed to meet their obligations, thereby reducing their ownership to 7.2 percent.

“The agreement was initially for a 20 percent stake with NNPC, but they have not paid the balance since last year. We extended the deadline to June 2024, but they chose to maintain their 7.2 percent stake,” said Dangote. “Therefore, the government owns only 7.2 percent, not 20 percent.”

This revelation surprised many Nigerians who had been informed for years that the government held a 20 percent stake in the refinery.

In 2021, NNPC’s Group Managing Director, Mele Kyari, stated that acquiring a stake in the refinery was driven by its profit potential and the importance of energy security for Nigeria and Africa, with significant implications for the country’s fiscal stability.

During the briefing, Dangote also discussed the challenges of supplying crude to the refinery, noting they had been sourcing from the US and Brazil. He mentioned that the government is working on new regulations to resolve these issues.

In March 2021, NNPC announced plans to raise US$2.76 billion to purchase a 20 percent stake in the Dangote Refinery. NNPC’s Chief Operating Officer of Refining and Petrochemicals, Mustapha Yakubu, emphasized the importance of securing Nigeria’s position in the project for energy security.

However, Dangote clarified that NNPC has only paid enough to acquire a 7.2 percent stake and failed to meet the obligations due last month.

The Dangote Refinery, located in the Lekki Free Zone, Lagos, Nigeria, is a major oil project with a capacity of 650,000 barrels per day (BPD). Owned by the Dangote Group, it aims to become Africa’s largest oil refinery and the world’s largest single-train facility.

The refinery is expected to create 9,500 direct jobs and 25,000 indirect jobs, significantly boosting the regional economy.

Once fully operational, it will produce approximately 50 million liters of petrol and 15 million liters of diesel daily, totaling 10.4 million tonnes of petroleum products annually. It will also yield 4.6 million tonnes of diesel and 4 million tonnes of jet fuel per year. Additionally, the facility includes a fertilizer plant that will utilize refinery by-products, further enhancing its economic and environmental impact.