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Nigeria’s state-owned oil company is taking a bigger bet on Africa’s largest refinery. The Nigerian National Petroleum Company (NNPC) Limited said it plans to raise its stake in Aliko Dangote’s $20 billion Dangote Petroleum Refinery to 20 percent, a move aimed at securing more control in the country’s refining industry and reducing reliance on imported fuel.
Bayo Ojulari, chief executive officer of NNPC, disclosed the plan at the 2025 Abu Dhabi International Petroleum Exhibition and Conference. He said the company’s goal is to deepen local participation in the energy value chain and support long-term energy security.
“The company is working towards increasing its stake in Nigeria’s Dangote refinery to 20 percent,” Ojulari said. His comments come just a week after George Elombi, the new president of the African Export-Import Bank (Afreximbank), said Dangote was preparing to raise $5 billion to expand the multibillion-dollar refinery in Lagos.
Dangote eyes 1.4m-barrel daily refinery target
Dangote, speaking at a separate briefing in Lagos in October, confirmed that the facility’s processing capacity will rise from 650,000 barrels per day to 1.4 million barrels per day within three years. The billionaire industrialist said the expansion will be financed through a mix of internal revenue, a possible public listing, and fresh investment from partners.
“This expansion reflects our confidence in Nigeria’s future and our commitment to ensuring Africa’s energy independence,” Dangote said. When completed, the enlarged refinery would become the largest in the world, overtaking India’s Jamnagar complex. The facility could generate as much as $55 billion in annual revenue and strengthen Nigeria’s foreign exchange reserves by cutting fuel imports.
Dangote, NNPC deepen energy market collaboration
The planned investment from NNPC also follows Dangote’s recent disclosure that between five and ten percent of the refinery’s shares will be listed on the Nigerian Exchange next year. The listing, modeled after similar moves by Dangote Cement and Dangote Sugar, will allow investors to buy into one of Africa’s biggest energy projects.
“Within the next year, the refining business will list five to ten percent of its shares,” Dangote said. “We don’t plan to hold more than 65 to 70 percent. We’ll release shares gradually based on investor interest and market strength.”
For NNPC, the decision to raise its equity position marks another step in its broader plan to boost local refining and keep more of the nation’s oil wealth within its borders. Earlier this year, the company’s gas subsidiary acquired a 15 percent stake in Greg Ogbeifun’s Starzs Gas Limited, owner of a compressed natural gas station in Delta State. The $7 million deal underscores NNPC’s growing focus on domestic gas use and the shift toward cleaner energy.
