President of the Dangote Group, Aliko Dangote, has disclosed that the company rejected attempts by the Nigerian National Petroleum Company Limited to increase its existing 7.25 per cent stake in the Dangote Petroleum Refinery, which has now exceeded its installed production capacity by processing 661,000 barrels of crude oil per day.
He made that known in an interview with the Chief Executive Officer of Norway’s Sovereign Wealth Fund, Nicolai Tangen, monitored on Wednesday.
He explained that the decision was taken because the company plans to list the refinery publicly and allow more Nigerians to own shares in the multi-billion-dollar facility.
The refinery, located in Lekki, Lagos, has become Nigeria’s dominant supplier of Premium Motor Spirit (petrol), with fresh industry figures showing that local refining supplied 3.18 billion litres of petrol in the first quarter of 2026, while imports declined sharply to 965.52 million litres.
Industry analysis indicates that the refinery supplied over ₦3.2tn worth of petrol domestically between January and March 2026, based on an estimated ex-depot price of about ₦1,000 per litre.
Dangote identified policy inconsistency as one of the biggest threats to business operations in Nigeria.
“The biggest risk is government inconsistencies in policies, and we are addressing that one because if you look at our refinery, the national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to spread it and have everybody be part of it,” he said.
The NNPC had initially agreed to acquire a 20 per cent stake in the refinery and paid $1bn for 7.25 per cent in 2021, with plans to complete the remaining acquisition by June 2024. However, the deal was later reduced after the company failed to pay the balance.
Dangote had earlier clarified in 2024 that the national oil company ultimately retained only 7.2 per cent ownership in the refinery.
He also disclosed plans to reward future investors in dollars through dividends generated from export earnings.
“When you invest in any of our businesses going forward, in cement, refinery, petrochemicals or fertiliser, we guarantee to pay dividends in dollars because 80 per cent of our revenue will be in dollars,” he stated.
He explained that the refinery project was financed with support from Afreximbank, Africa Finance Corporation, Zenith Bank, Access Bank, United Bank for Africa, Standard Bank and Standard Chartered.
The billionaire businessman further revealed that he sold his luxury properties in the United States and the United Kingdom to focus fully on industrial investments in Nigeria.
According to him, his business strategy focuses on backward integration by producing goods that Nigerians consume daily rather than relying on imports.
Petrol imports decline
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that domestic refinery supply accounted for 76.7 per cent of Nigeria’s petrol supply in the first quarter of 2026.
The figures revealed that local refinery supply increased by 59.2 per cent year-on-year, rising from 1.99 billion litres in Q1 2025 to 3.18 billion litres in Q1 2026.
Meanwhile, petrol imports dropped by 60.2 per cent during the same period, falling from 2.43 billion litres to 965.52 million litres.
Despite the growth in local refining, total petrol supply declined slightly from 4.42 billion litres in Q1 2025 to 4.14 billion litres in Q1 2026.
Industry analysts noted that while Nigeria’s dependence on imported petrol has reduced significantly, imports have not been completely eliminated.
Energy economist Wumi Iledare cautioned against claims that petrol importation had ended entirely, describing such assertions as overly optimistic.
Similarly, the Chief Executive Officer of petroleumprice.ng, Jeremiah Olatide, described the increase in domestic refining as a major milestone in Nigeria’s efforts to reduce dependence on imported fuel.
Refinery exceeds capacity
Dangote also announced that the refinery has processed as much as 661,000 barrels of crude oil per day, surpassing its official 650,000 barrels-per-day nameplate capacity.
According to him, the achievement has boosted investor confidence and strengthened the company’s credibility among global financial institutions.
He also highlighted gains from the Middle East crisis involving the United States and Iran, saying higher global energy prices had significantly increased demand for fertiliser, aviation fuel and polypropylene products produced by the group.
Dangote disclosed that fertiliser prices had risen from about $400 per tonne to $850 per tonne, while polypropylene prices climbed from $900 to nearly $3,000 in some markets.
He added that the refinery currently produces about 20 million litres of aviation fuel daily, with supplies reportedly sold out until mid-July.
On crude sourcing, Dangote said the refinery currently obtains about 56 per cent of its crude oil from Nigeria, while additional supplies come from Angola, Libya and the United States.
He disclosed that the refinery now requires 21 cargoes of crude monthly and plans are underway to expand refining capacity to 1.4 million barrels per day within the next 30 months.
Dangote also alleged that powerful interests benefiting from Nigeria’s former fuel subsidy regime had attempted to frustrate the refinery project.
According to him, traders, importers and subsidy beneficiaries resisted the refinery because it disrupted the profits they previously earned from fuel importation and subsidy allocations.
The businessman stated that the group intends to raise about $45bn through fresh investments and partial stake sales across its businesses as part of a long-term target to achieve $100bn in annual revenue by 2030.
Dangote rejects NNPC offer to increase refinery stake as plant exceeds 661,000bpd capacity
