Dangote to divest petroleum refinery stake amid monopoly concerns

Dangote Group Chairman, Aliko Dangote, has expressed his intention to divest the $20 billion Dangote Refinery, potentially selling it to the Nigerian National Petroleum Corporation (NNPC) Limited.

While in an interview on July 21, 2024, Aliko Dangote revealed that he is prepared to hand over the reins of the Dangote Refinery to the Nigerian National Petroleum Corporation (NNPC) Limited.

He said, “Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way.

“We have been facing fuel crisis since the 70s. This refinery can help in resolving the problem but it does appear some people are uncomfortable that I am in the picture. So I am ready to let go, let the NNPC buy me out, run the refinery.

Dangote’s decision follows criticism from Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), who accused Dangote of attempting to create a monopoly in the oil and gas sector.

Ahmed argued that the refinery, currently at 45% completion and still in the pre-commissioning stage, produces inferior products and that relying solely on it would jeopardize Nigeria’s energy security.

Ahmed underscored that Dangote’s diesel fails to meet West Africa’s quality standards due to high sulphur content.

He stressed that the country cannot depend on a single refinery and should continue to import petroleum products to ensure market stability and energy security.

Located in the Lekki Free Zone near Lagos, the Dangote Refinery stands as one of the world’s largest oil refineries, boasting an impressive projected capacity of 650,000 barrels daily.

The project seeks to fulfill Nigeria’s internal petroleum requirements and decrease the country’s reliance on foreign imports.