10% of $20bn Dangote Refinery Up for Sale

By Deborah Oladapo

Africa’s richest man, Alhaji Aliko Dangote, has announced plans to sell between five and ten percent of his $20 billion Dangote Petroleum Refinery on the Nigerian Exchange (NGX) within the next year.

The move, confirmed in an interview with S&P Global, is aimed at deepening investor participation and giving Nigerians an opportunity to own a stake in the country’s largest refinery.

Speaking to S&P Global, Dangote revealed that the planned listing will mirror the group’s earlier approach with Dangote Cement and Dangote Sugar Refinery, both of which are already quoted on the NGX. “We don’t want to keep more than 65 to 70 percent,” Dangote said. “Shares will be sold gradually, depending on how interested investors are and how the market performs.”

The billionaire industrialist said the refinery’s shares are expected to be listed on the Nigerian Exchange in 2026, marking the first public sale of shares in the massive facility located in Lekki, Lagos State. The decision aligns with Dangote’s strategy to strengthen corporate governance and attract both local and foreign investors, particularly from the Middle East, to fund further expansion and the development of a petrochemicals project in China. “Our business concept is changing. Instead of being 100 percent Dangote-owned, we’ll now have other partners,” Dangote stated.

The refinery, which began operations in 2024, currently refines 650,000 barrels of crude oil per day (bpd) and has helped Nigeria become a net exporter of diesel and jet fuel. Dangote revealed plans to ramp up production capacity to 700,000 bpd by the end of 2025 and to 1.4 million bpd in the long term — a figure that would surpass the world’s largest refinery in Jamnagar, India, which produces 1.36 million bpd.

The refinery also aims to increase polypropylene output from one million to 1.5 million metric tonnes annually, while pursuing new projects in base oils and linear alkylbenzene production. On the refinery’s operational status, Dangote acknowledged that while most technical challenges had been resolved, a one-month shutdown might be required for final maintenance. “We have resolved most, not all, but most of the problems,” he said. “We’re looking for a window when we shut down for another month,” adding that the schedule would be timed to avoid fuel shortages during the end-of-year period.

He also disclosed that oil production from the company’s upstream assets — Oil Mining Leases (OML) 71 and 72 — is expected to begin this month, with output projected to reach 40,000 barrels per day.

The Nigerian National Petroleum Company Limited (NNPC) currently holds a 7.2 percent stake in the refinery. Dangote noted that NNPC could increase its ownership in the future but only “once the next phase of the project’s growth is fully underway.” “I want to demonstrate what this refinery can do, then we can sit down and talk,” he said.

He further stated that the refinery’s recent reorganisation, which involved the dismissal of about 800 staff, had helped stabilise operations and improved relations with labour unions. “We don’t have any worries with the unions,” Dangote added.

Dangote’s plan to sell part of his refinery shares represents a strategic step toward broadening ownership, raising capital, and cementing Nigeria’s position as a regional energy hub. If successful, it will mark one of the largest listings in the history of the Nigerian capital market.