Aliko Dangote Offers to Transfer Ownership of Multibillion-Dollar Refinery to NNPC Amid Dispute
Africa’s wealthiest man, Aliko Dangote, has announced his willingness to relinquish ownership of his multibillion-dollar oil refinery to the state-owned energy company, Nigerian National Petroleum Corporation Limited (NNPCL). This comes amid escalating tensions with a key equity partner and ongoing disputes with regulatory authorities in Nigeria.
The 650,000 barrel-per-day refinery, which became operational last year after a decade-long construction period, cost a staggering $19 billion—more than double the initial estimate. The refinery was hailed as a game-changer for Africa’s largest oil producer, promising to significantly reduce the country’s dependency on imported fuel and save up to 30% of the foreign exchange spent on imports.
In an exclusive interview with PREMIUM TIMES on Sunday, Dangote expressed his readiness to exit the project if necessary. “Let them [NNPCL] buy me out and run the refinery the best way they can. They have labeled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least their so-called monopolist would be out of the way,” Dangote stated.
The billionaire entrepreneur highlighted the persistent fuel crises in Nigeria, which have plagued the nation since the 1970s. He emphasized the potential of his refinery to alleviate these issues, but acknowledged that his involvement may be a point of contention for some stakeholders. “This refinery can help in resolving the problem but it does appear some people are uncomfortable that I am in the picture. So I am ready to let go, let the NNPC buy me out, run the refinery,” he added.
Dangote's offer to sell his stake in the refinery underscores the ongoing challenges and complexities facing Nigeria's energy sector. The refinery, one of the largest in the world, was expected to transform Nigeria’s oil industry by providing a steady supply of refined petroleum products, thereby reducing the country’s import bills and stabilizing fuel prices.
The current dispute with one of the key equity partners is just the latest in a series of hurdles that have marked the refinery’s development and operational phases. Despite these challenges, Dangote has remained steadfast in his commitment to the project, until now.
The NNPC’s potential acquisition of the refinery could lead to significant changes in its management and operational strategies. However, it remains to be seen how this will impact the overall objectives of reducing fuel imports and stabilizing the domestic market.
As this story develops, stakeholders and industry analysts will be closely watching the next moves by both Dangote and the NNPC, and the implications for Nigeria's energy landscape.
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