Dangote Rejects NNPC's Bid to Increase Refinery Stake

Aliko Dangote, President of Dangote Group, revealed the reasons for rejecting the Nigerian National Petroleum Corporation's (NNPC) bid to increase its stake in the Dangote Petroleum Refinery during an interview with Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund, on May 13. NNPC currently owns a 7.25% stake in the $20 billion refinery, which it acquired for $1 billion in 2021.

Although NNPC initially planned to acquire a 20% stake, the deal was scaled back. Dangote stated that the refinery aims to broaden ownership and attract local and foreign investors, rather than concentrating ownership further.

He also mentioned that the company is preparing to open ownership to a wider pool of investors, which is expected to deepen regional participation in Africa's largest industrial project. Additionally, Dangote disclosed that NNPC has failed to pay the balance required to complete the original agreement, despite being granted an extension until June 2024.