Marketers question why billions are being channelled toward Dangote refinery while Port Harcourt, Kaduna and Warri refineries remain inactive…..
Fresh controversy has emerged in Nigeria’s oil sector after the Independent Petroleum Marketers Association of Nigeria (IPMAN) criticised the Nigerian National Petroleum Company Limited (NNPC) over its reported attempt to increase its stake in the Dangote Petroleum Refinery despite the poor performance of government-owned refineries.
The National Publicity Secretary of Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, faulted the move while reacting to recent comments by billionaire industrialist Aliko Dangote, who disclosed that the national oil company sought to acquire more shares in the refinery beyond its existing 7.25 per cent stake.
Dangote made the revelation during an interview with Nicolai Tangen, where he explained that the request was turned down because the company intends to eventually open ownership to a broader range of Nigerians through public listing.
Reacting to the development, Ukadike questioned the rationale behind NNPC’s interest in investing additional funds in the privately-owned refinery while the Port Harcourt, Warri and Kaduna refineries under government control have remained largely unproductive despite huge rehabilitation spending over the years.
“Why is NNPC trying to invest money in the Dangote refinery when it has three refineries that are not working?” he asked.
“The NNPC did not revive our refineries, but they want to look for where the refinery is already working to put money into it. Does that make sense?”
The IPMAN spokesman maintained that Dangote was within his rights to reject any proposal he considered unfavourable to his business interests, adding that the billionaire businessman likely wanted to avoid unnecessary corporate interference.
“If Dangote refused to sell more stakes to NNPC, he must have his reasons. Dangote is a businessman. He doesn’t want unnecessary crises and nepotism. He knows what he wants,” Ukadike stated.
He further urged the national oil company to focus on revamping critical oil infrastructure across the country, especially pipelines and dormant refineries, instead of seeking deeper ownership in Dangote’s project.
According to Dangote, the NNPC had initially acquired a 7.25 per cent stake in the refinery after paying $1 billion in 2021, although the original agreement was for a 20 per cent shareholding.
He explained that the national oil company failed to complete payment for the remaining stake before the agreed deadline, eventually settling for its current ownership level.
“The agreement was actually 20 per cent, which we had with NNPC, and they did not pay the balance of the money,” Dangote had previously explained.
The billionaire entrepreneur also revealed that the company declined NNPC’s fresh attempt to acquire more shares because plans were underway to allow wider public participation in the refinery’s ownership structure.
“We are the ones that said no; we want to now spread it and have everybody be part of it,” he said.
However, not everyone in the sector agrees with Dangote’s position.
A senior stakeholder in Nigeria’s petroleum industry, who spoke anonymously due to the sensitivity of the issue, argued that it would be in the country’s strategic interest for the NNPC to hold a larger stake in the refinery.
According to the source, the refinery is too significant to Nigeria’s energy security and economic stability for the government to remain on the sidelines.
“I think Nigeria is better served by NNPC being a shareholder,” the stakeholder said.
“You can’t have such a big asset in the country, and then the government or the government’s agent has no say in the decisions of that company.”
The stakeholder also suggested that Dangote may be reluctant to dilute control of the company as plans reportedly advance to value the refinery business at around $50 billion.
Meanwhile, an official of the Nigerian National Petroleum Company Limited said the organisation remains satisfied with its current 7.2 per cent stake in the refinery and described the existing partnership between both entities as beneficial to Nigeria.
“The NNPC is proud and happy that we own a 7.2 per cent stake in Dangote,” the official reportedly said.
“Apart from that, the quality and level of collaboration currently going on between NNPC and Dangote is in the interest of the entire Nigeria.”
The latest exchange highlights growing debate within the oil and gas sector over government participation in strategic private investments, especially as the Dangote refinery continues to reshape Nigeria’s downstream petroleum industry.
