- Aliko Dangote has revealed that NNPC Limited attempted to increase its 7.25% stake in his refinery
- The billionaire also confirmed plans to make the refinery available for the public to invest in
- New data shows that Dangote refinery supplied over 76% of Nigeria’s petrol market in Q1 2026
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The President of Aliko Dangote has disclosed that the Nigerian National Petroleum Company Limited had attempted to increase its 7.25% stake in the $20 billion Dangote Petroleum Refinery, but the proposal was turned down as the group is preparing to open up ownership to other Nigerians by listing it on the stock exchange.
Dangote made the revelation in an interview with Nicolai Tangen and said that management of the refinery thought it was better to spread ownership than allow the national oil company to increase its stake in the refinery.
Photo: Bloomberg
Source: Getty Images
Dangote said:
“The national oil company already owns 7.25%, 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.”
This move comes at a time when the refinery is making inroads into Nigeria’s downstream petroleum market. Official figures show that locally produced PMS sales in the first quarter of 2026 have increased and helped reduce Nigeria’s dependence on imported petrol, Punch reports.
NNPC’s refinery stake controversy
NNPC first took a 7.25% stake in the refinery for $1bn in 2021, and had the option to raise its shareholding to 20% with the acquisition of a further 12.75% stake in the refinery before June 2024.
The state-run oil company later reneged on the plan to increase its stake in the refinery.
The Chairman of Dangote Group had previously disclosed that, contrary to beliefs, the NNPC did not pay the full balance of the equity for a 20% stake at that time.
He stated:
“The agreement was actually 20% which we had with NNPC and they did not pay the balance of the money.”
Dangote, founder of the refinery, however, warned that unpredictable government policies remain a major business challenge alongside security challenges in Nigeria.
Timeline of events
- 2021: NNPC acquired 7.25% stake in Dangote refinery for $1 billion, with plans for 20 per cent ownership
- 2024: Dangote revealed NNPC failed to complete payment for the remaining 12.75 per cent equity
- 2024: NNPC officially retained only 7.25 per cent stake after abandoning the expansion option
- 2026: Dangote plans Africa wide Initial Public Offering (IPO)
Petrol supply in Nigeria
Meanwhile, official figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that local refineries sold 3.18bn litres of PMS between January and March 2026, while petrol import dipped to 965.52m litres.
The local supply of PMS alone, valued at about N1,000 per litre from its ex-depot price, means Nigerians spend more than N3.2 trillion to buy petrol from January to March 2026.
Photo: Bloomberg
Source: Getty Images
Consumption of petrol in Nigeria
Based on analysis from NMDPRA’s downstream figures, Nigerians consumed about 4.93 billion litres of petrol in Q1 2026, a 7.4% jump from 4.59 billion litres in Q1 2025.
Q1 2026 breakdown by petrol consumption
- Jan 2026 – 1.94bn litres
- Feb 2026 – 909.55m litres
- Mar 2026 – 1.29bn litres
Fuel prices crash at depots nationwide
Earlier, Legit.ng reported that private depot owners are lowering fuel prices despite international crude oil prices remaining high, sparking renewed competition in the downstream petroleum market.
Brent crude and West Texas Intermediate (WTI) are trading at between $102 and $107 per barrel, placing upward pressure on refined product prices.
Nigerian depot prices continue to incorporate a mix of global crude oil trends and domestic supply conditions.
Source: Legit.ng