The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticised the Nigerian National Petroleum Company Limited (NNPC) over its reported attempt to increase its stake in the Dangote Petroleum Refinery, insisting the national oil company should focus on reviving government-owned refineries instead.
The reaction followed comments by President of the Dangote Group, Aliko Dangote, who revealed that the NNPC sought to acquire additional shares in the $20bn refinery beyond its existing 7.25 per cent stake.
Dangote disclosed this during an interview with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Nicolai Tangen, monitored on Wednesday.
Reacting to the development, IPMAN National Publicity Secretary, Chinedu Ukadike, questioned why the NNPC was seeking further investment in a privately-owned refinery while government-owned facilities in Port Harcourt, Warri and Kaduna remained largely inactive despite billions of dollars reportedly spent on rehabilitation.
“Why is NNPC trying to invest money in the Dangote refinery when it has three refineries that are not working? Why is NNPC not investing that money in those ones?” Ukadike asked.
He argued that the national oil company should prioritise revamping existing public refineries and repairing oil pipelines instead of pursuing additional ownership in the Dangote facility.
“The NNPC did not revive our refineries, but they want to look for where the refinery is already working to put money into it. The NNPC should repair the pipelines and revive the refineries instead of eyeing the Dangote refinery,” he added.
Ukadike also defended Dangote’s decision to reject the request for additional shares, saying the businessman had the right to protect his investment and business structure.
“If Dangote refused to sell more stakes to NNPC, he must have his reasons. Dangote is a businessman. He doesn’t want unnecessary crises. He knows what he wants, and I also think he has enough cash to fund his business,” he stated.
Dangote had explained that the refinery owners rejected the request because the company plans to list publicly in the future and allow wider Nigerian participation through share ownership.
According to him, “The national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it.”
The NNPC had initially agreed to acquire a 20 per cent stake in the refinery in 2021 for $2.76bn but later retained only 7.25 per cent after failing to complete payment before the June 2024 deadline.
Dangote had earlier clarified that the oil company could not meet the payment timeline and eventually opted to maintain the shares already paid for.
Despite the criticism from IPMAN, a stakeholder in the petroleum sector argued that Nigeria would benefit more if the NNPC held a larger stake in the refinery.
The stakeholder, who spoke anonymously, said government participation in such a strategically important facility would protect national interests and ensure oversight.
“I think Nigeria is better served by NNPC being a shareholder. If NNPC could have taken 20 per cent of that refinery, Nigeria as a country would be better served,” the source said.
The stakeholder also suggested that Dangote’s reluctance to sell more shares was aimed at retaining control of the company, especially as plans are underway to publicly value the refinery business at about $50bn.
Meanwhile, a senior NNPC official said the company remained satisfied with its current 7.25 per cent stake in the refinery, describing the partnership between both organisations as beneficial to Nigeria’s energy sector.
“The NNPC is proud and happy that we own a 7.2 per cent stake in Dangote. Whatever we own as a stake in Dangote as a national oil company is on behalf of the entire Nigeria,” the official said.
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