In a move that has sent ripples through Nigeria’s energy and financial sectors, Alhaji Aliko Dangote has confirmed that the Dangote Group has officially rejected an offer from the Nigerian National Petroleum Company (NNPC) Limited to increase its equity in the 650,000 barrels-per-day refinery.
The revelation came during a high-profile interview on May 13, 2026, with Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund. Dangote’s stance marks a definitive end to months of speculation regarding the shareholding structure of the continent’s largest single-train refinery, effectively “shutting the door” on the state oil firm’s attempt to regain its previously planned 20% stake.
The History of a Shrinking Stake
The relationship between the state-owned oil giant and the Dangote Group has seen significant recalibration over the last two years. Under the previous leadership of Mele Kyari, the NNPC’s stake was dramatically reduced from 20% to a mere 7.25% after the corporation failed to meet the payment deadline for the remaining 12.75% equity by June 2024.
“The national oil company already owns 7.25 per cent, and they are trying to buy more,” Dangote stated. “We are the ones that said no; we want to now spread it and have everybody be part of it.”
This “no” is not merely a rejection of the NNPC, but a pivot toward a more democratic ownership structure. Sources close to the group suggest that the refinery is being groomed for an Initial Public Offering (IPO), with the goal of allowing ordinary Nigerians and international institutional investors to hold a piece of the industrial crown jewel.
A Dollar-Backed Promise
To sweeten the deal for future shareholders, Dangote announced a revolutionary dividend policy. Unlike many Nigerian equities hampered by the volatility of the Naira, the billionaire businessman guaranteed that dividends for the refinery, as well as the group’s fertilizer and petrochemical arms, will be paid in U.S. Dollars.
“80 per cent of our revenue will be in dollars because we are very well into exports,” Dangote explained. This move is seen by analysts as a strategic play to attract foreign capital and insulate investors from the inflationary pressures that have plagued the domestic economy.
Policy Inconsistency: The Great Risk
While the refinery is currently operating above its nameplate capacity—recently processing 661,000 barrels per day—Dangote identified “government inconsistency in policies” as the single greatest threat to industrial growth in Nigeria. He noted that while civil unrest is a theoretical risk, the sudden shifts in regulatory frameworks and fiscal policies remain the primary hurdle for large-scale long-term investments.
By rejecting the NNPC’s bid for more control, the Dangote Group appears to be insulating the project from such political fluctuations, opting instead for the transparency and accountability required of a publicly-traded entity.
