NNPC Moves to Raise Stake in Dangote Refinery to 20%

The Nigerian National Petroleum Company Limited is advancing plans to increase its equity stake in the Dangote Petroleum Refinery to 20 per cent as part of efforts to strengthen domestic refining and reduce dependence on imported fuel.

NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed the plan while speaking at the Abu Dhabi International Petroleum Exhibition and Conference. He said the move aligns with the company’s long-term strategy to deepen local participation in the energy value chain and enhance national energy security.

NNPC currently holds about 7.2 per cent in the refinery. The proposed additional investment represents nearly a 13 per cent increase in shareholding.

Industry sources indicate that negotiations between both parties have progressed to focus on valuation, operational alignment and crude supply arrangements. The stake is expected to guarantee steady crude supply to the 650,000 barrels-per-day facility and ensure refined products are available for the local market.

The refinery, located in Lagos, has begun phased operations and is projected to meet Nigeria’s fuel demand while exporting excess products to other African markets.

The development also comes as Dangote Group prepares to list 5 to 10 per cent of the refinery’s shares on the Nigerian Exchange within the next year, following the model used for its cement and sugar companies. Founder Aliko Dangote has said the group intends to retain between 65 and 70 per cent ownership after the public listing.

Meanwhile, NNPC is continuing its search for partners to revive its Port Harcourt, Warri and Kaduna refineries, which have remained idle despite multiple rehabilitation efforts.

Ojulari also confirmed that the company is preparing for its own initial public offering as required under the Petroleum Industry Act, adding that NNPC has begun publishing monthly performance reports to improve transparency.