Dangote Rejects NNPC's Stake Increase in Refinery

Aliko Dangote, President of Dangote Group, disclosed during an interview with Nicolai Tangen, Chief Executive Officer of the Norwegian Sovereign Wealth Fund, that his company has turned down the Nigerian National Petroleum Company's (NNPC) attempt to increase its stake in the Dangote Petroleum Refinery from 7% to 25%. Dangote expressed concerns about the instability of government policies in Nigeria, identifying inconsistent policies and potential political instability as major risks for large-scale investments.

He stated that the refinery is expected to go public in the future to allow Nigerian investors to own shares, aiming to broaden ownership rather than concentrating equity in a few hands. Dangote also mentioned that 80% of the refinery's revenue is expected to come from foreign exchange earnings, which would facilitate dollar-denominated dividends.

The Dangote Group's business portfolio includes cement, petrochemicals, fertilizers, and the refinery, with financial backing from several institutions, including Afreximbank and Zenith Bank.