The Nigerian National Petroleum Company Limited (NNPC) had previously agreed to acquire a 20% equity stake in the Dangote Petroleum Refinery for $2.76 billion, marking a strategic move to bolster Nigeria’s domestic refining capacity mynigeria.com. The deal was part of broader efforts to reduce reliance on imported fuel and support the $20 billion refinery project, which began producing diesel and aviation fuel in January 2024.
However, Aliko Dangote, CEO of Dangote Group, revealed in July 2024 that NNPC no longer holds the full 20% stake. The company’s share was reduced to 7.2% after it failed to pay the balance of its agreed investment Business Insider Africa. This development came despite the federal government securing a $1 billion loan—backed by crude oil—to support the refinery initiative mynigeria.com Vanguard News.
The Dangote Refinery, located in Lagos, is Africa’s largest and is expected to significantly transform Nigeria’s energy landscape. With a daily output capacity of 70 million litres, the facility has already surpassed domestic fuel demand, positioning Nigeria as a potential exporter of refined products.
NNPC’s reduced stake raises questions about the government’s long-term commitment to domestic refining and its ability to meet financial obligations in strategic partnerships. Industry analysts suggest that while the initial investment was promising, the failure to complete the payment may affect future collaboration and influence Nigeria’s energy policy direction.
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