Aliko Dangote has disclosed that the Nigerian National Petroleum Company Limited (NNPC) attempted to increase its 7.25% stake in the $20 billion Dangote Petroleum Refinery, but the proposal was rejected. The billionaire explained that the refinery is preparing to open up ownership to other Nigerians by listing on the stock exchange.
Dangote made the revelation in an interview with Nicolai Tangen, stating that management believed it was better to spread ownership rather than allow the national oil company to increase its stake.
Dangote's Statement on NNPC's Stake Bid
Dangote said: "The national oil company already owns 7.25%, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it."
This move comes as the refinery makes inroads into Nigeria's downstream petroleum market. Official figures show that locally produced PMS sales in the first quarter of 2026 have increased, helping reduce Nigeria's dependence on imported petrol.
Background of NNPC's Stake in the Refinery
NNPC first took a 7.25% stake in the refinery for $1 billion in 2021, with an option to raise its shareholding to 20% by acquiring an additional 12.75% before June 2024. However, the state-run oil company later reneged on the plan to increase its stake.
The Chairman of Dangote Group had previously disclosed that NNPC did not pay the full balance of the equity for a 20% stake. He stated: "The agreement was actually 20% which we had with NNPC and they did not pay the balance of the money."
Dangote warned that unpredictable government policies remain a major business challenge alongside security issues in Nigeria.
Timeline of Key Events
- 2021: NNPC acquired 7.25% stake in Dangote refinery for $1 billion, with plans for 20% ownership.
- 2024: Dangote revealed NNPC failed to complete payment for the remaining 12.75% equity.
- 2024: NNPC officially retained only 7.25% stake after abandoning the expansion option.
- 2026: Dangote plans an Africa-wide Initial Public Offering (IPO).
Petrol Supply in Nigeria
Official figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that local refineries sold 3.18 billion litres of PMS between January and March 2026, while petrol imports dipped to 965.52 million litres. The local supply of PMS, valued at about N1,000 per litre from its ex-depot price, means Nigerians spent more than N3.2 trillion on petrol from January to March 2026.
Petrol Consumption in Q1 2026
Based on analysis from NMDPRA's downstream figures, Nigerians consumed about 4.93 billion litres of petrol in Q1 2026, a 7.4% jump from 4.59 billion litres in Q1 2025.
Breakdown by month:
- January 2026: 1.94 billion litres
- February 2026: 909.55 million litres
- March 2026: 1.29 billion litres
Fuel Prices Crash at Depots
Private depot owners are lowering fuel prices despite high international crude oil prices, sparking renewed competition in the downstream petroleum market. Brent crude and West Texas Intermediate are trading between $102 and $107 per barrel, placing upward pressure on refined product prices. Nigerian depot prices continue to incorporate a mix of global crude oil trends and domestic supply conditions.
