Dangote to sell $20bn refinery to FG-owned NNPC

Aliko Dangote, Chairman of Dangote Groups has said he is ready to sell the $20 billion Dangote Refinery to the Nigerian National Petroleum Corporation (NNPC) Limited.

The Africa’s richest man disclosed this in an interview with Premium Times on Sunday, July 21, 2024.

“…I am ready to let go, let the NNPC buy me out, run the refinery,” he said.

“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.”

Dangote’s reaction came after, the Chief Executive Officer of NMDPRA Farouk Ahmed in an interview stated that Dangote was trying to entrench monopoly in the oil and gas sector, that the products are inferior and that the 650,000-bpd refinery is still in the pre-commissioning stage and about 45 per cent completed.

Ahmed added that the country cannot risk dependence on Dangote Refinery alone by suspending petroleum products, especially Automotive Gas Oil and Dual-Purpose Kerosene, DPK.

He said: “That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 per cent to completion.

“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.”

Ahmed said that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulphur content, falling short of West Africa’s requirement of 50 parts per million (PPM).

“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are much, much, more inferior to imported ones,” he stated.

The Dangote Refinery, located in the Lekki Free Zone near Lagos, Nigeria, is one of the largest oil refineries in the world. Initiated by the Dangote Group, it aims to meet Nigeria’s domestic demand for refined petroleum products, reducing the country’s dependence on imported fuel.

The refinery’s projected capacity is 650,000 barrels per day, which is expected to transform Nigeria from an importer to a net exporter of refined petroleum products.

Construction of the refinery began in 2016, with the project involving complex engineering and massive investments. The refinery includes a petrochemical plant and a fertilizer plant, making it a significant industrial hub in the region.

The impact of the Dangote Refinery extends beyond the oil sector. It is anticipated to create thousands of jobs and stimulate economic growth in Nigeria. By producing a surplus of refined products, it aims to stabilize fuel prices and ensure a steady supply for local markets, contributing to energy security