NNPC Targets 20% Stake in Dangote Refinery to Strengthen Nigeria’s Oil Sector
The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to increase its equity stake in the $20 billion Dangote Petroleum Refinery to 20%, signaling a renewed push to enhance Nigeria’s domestic refining capacity and assert its influence in the downstream oil sector.
Group Chief Executive Officer of NNPCL, Bayo Ojulari, made the disclosure at the Abu Dhabi International Petroleum Exhibition and Conference 2025, emphasizing that the investment aligns with the company’s long-term strategy to deepen local participation in the energy value chain and ensure national energy security.
“The company is working towards increasing its stake in Nigeria’s Dangote Refinery to 20%,” Ojulari said, according to Reuters.
Currently, NNPCL holds a 7.2% equity interest in the refinery. The planned move would represent a significant increase of nearly 13%, underscoring the state-owned oil company’s determination to play a more active role in one of Africa’s largest industrial projects.
The announcement comes amid Dangote Group’s ongoing preparations to list between 5% and 10% of the refinery’s shares on the Nigerian Exchange (NGX) within the next year. This initiative mirrors the conglomerate’s successful listing strategy for its cement and sugar subsidiaries, which have both achieved significant market capitalization milestones.
“Within the next year, the refining business will list five to ten per cent of its shares,” Dangote said. “We don’t want to keep more than 65% to 70%. Shares will be released gradually based on investor demand and market strength.”
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Dangote explained that the refinery aims to establish a proven performance record before further equity discussions with interested investors, including NNPCL.
The move also coincides with NNPCL’s refinery rehabilitation program, which seeks technical and equity partners to revive Nigeria’s three state-owned refineries in Port Harcourt, Warri, and Kaduna. Despite years of maintenance funding, the facilities remain non-operational, forcing Africa’s largest crude producer to import most of its refined products — a paradox for a nation that exports millions of barrels of crude oil monthly.
Energy analysts believe that a fully functional Dangote Refinery, combined with a revitalized NNPCL-owned refining system, could finally move Nigeria toward self-sufficiency in refined petroleum products — an objective that has long eluded successive administrations.
Ojulari also used the Abu Dhabi forum to highlight NNPCL’s ongoing transformation, particularly its commitment to transparency and corporate governance ahead of its planned initial public offering (IPO).
“The IPO journey is prescribed by law through the Petroleum Industry Act. It’s not optional. Since May this year, we have begun publishing our monthly performance reports to build public trust and accountability,” Ojulari noted.
He added that the NNPCL’s corporate restructuring aims to position the company as a globally competitive energy player capable of attracting investors and competing with international oil companies.
“We are building an institution Nigerians can be proud of — commercially driven, transparent, and globally competitive,” he said.
Industry observers view NNPCL’s interest in increasing its stake as both a strategic and political maneuver. Economically, the move ensures that Nigeria retains partial ownership in a project that could transform its fuel import dynamics. Politically, it reinforces the government’s role in a refinery that has already begun shaping Africa’s energy supply chain.
However, critics have expressed caution, warning that state participation could risk introducing inefficiency and bureaucracy into what has been a privately-driven success. Still, proponents argue that NNPCL’s involvement will enhance accountability, regulatory coordination, and national energy planning.
With the refinery already ramping up operations, its integration into Nigeria’s energy framework — through both private and public collaboration — could redefine the country’s petroleum landscape. If successfully implemented, the NNPC-Dangote partnership could help Nigeria achieve what decades of state-led refinery management could not: a stable, self-reliant, and profitable domestic fuel industry.