Aliko Dangote Plans to Sell 10% Stake in Refinery On NGX

Chairman of Dangote Petroleum Refinery, Aliko Dangote, has announced plans to list between five and 10 percent of the refinery’s shares on the Nigerian Exchange (NGX) within the next year.

In an interview with S&P Global, Dangote explained that the move aligns with the company’s strategy of gradually opening up ownership, similar to other subsidiaries such as Dangote Cement and Dangote Sugar Refinery.

“We don’t want to keep more than 65 to 70 percent,” he said, noting that the shares would be released in phases based on investor interest and market conditions.

Dangote also revealed that the group is in discussions with investors from the Middle East to form strategic partnerships aimed at financing the refinery’s expansion and supporting a new petrochemicals project in China.

“Our business model is evolving. Instead of being fully Dangote-owned, we’re now opening up to new partners,” he stated.

He further hinted that the Nigerian National Petroleum Company Limited (NNPC) might increase its stake in the refinery in the future. The NNPC had previously reduced its holding to 7.2 percent, but Dangote suggested that discussions could resume once the refinery enters its next phase of development.

“I want to demonstrate what this refinery is capable of achieving, then we can have further discussions,” he said.

The refinery, which began operations in 2024, currently has a capacity of 650,000 barrels per day (bpd) and plans to boost output to 700,000 bpd by the end of this year. Dangote added that the long-term goal is to reach 1.4 million bpd, surpassing the capacity of the Jamnagar refinery in India, which produces 1.36 million bpd.

In addition to refining, the company is expanding its petrochemical operations, with plans to increase polypropylene production from one million to 1.5 million metric tonnes annually and to venture into base oils and linear alkylbenzene production.

Commenting on ongoing maintenance, Dangote noted that most technical challenges had been addressed, though a one-month shutdown might still be required for final adjustments.

“We’ve resolved most of the issues, and we’re looking for an appropriate window for a one-month shutdown,” he said, assuring that the maintenance would be scheduled to avoid disruptions during peak fuel demand at the end of the year.