The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to increase its stake in the Dangote Petroleum Refinery to 20 per cent.
This move aims to strengthen the nation’s refining capacity and deepen the strategic partnership between Nigeria’s state oil company and Africa’s largest refinery.
This development was revealed by the NNPC group chief executive officer, Bayo Ojulari, on Tuesday at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2025).
The NNPC currently holds a 7.2 per cent stake in the Dangote Petroleum Refinery, down from an earlier commitment of 20 per cent.
The reduction followed NNPC’s decision to cap its investment at the amount already paid, as it did not fulfil the full funding obligations initially agreed upon.
NNPC is now seeking to increase its shareholding from 7.2 per cent back up to 20 per cent, aiming to deepen its participation in Africa’s largest oil refinery once the refinery’s next growth phase is well underway.
Speaking with Reuters, Ojulari said the NNPC had been improving transparency about its performance in preparation for a long-awaited initial public offering.
Nigeria’s oil law requires NNPC to list within six months after the law was passed in 2021. It has yet to do so, although its finance chief said in March it was in the final stages of preparations.
“The IPO journey is by law. The PIA (Petroleum Industry Act) prescribes that NNPC should journey towards achieving Initial public offer (IPO). It’s not an option for us”, Ojulari told Reuters.
He added that the preparations required the company to become more transparent.
“We have begun to publish our monthly performance since May this year, and that has continued”, Ojulari added, without giving a timeline for the IPO.
The Dangote Petroleum Refinery, Africa’s largest oil refinery, launched operations last year but has struggled amid competition from cheap imports.
Last week, the NNPC CEO said it was seeking technical equity partners to help revive three of its refineries that have remained idle despite significant investments.
Furthermore, NNPC is actively seeking technical equity partners to revive three of its refineries, which have been inactive despite substantial past investments. This strategy aligns with Nigeria’s broader energy security agenda, which aims to boost local refining capacity and decrease the country’s heavy reliance on imported fuels.
The Dangote refinery had earlier announced that it planned to gradually sell between five and 10 per cent of its shares on the Nigerian Exchange (NGX) within the next year as part of a phased public listing, targeting a shareholding structure where Dangote Group retains around 65 to 70 per cent.
This move to increase NNPC’s stake will come as the refinery continues its expansion plans, including increasing refining capacity to 1.4 million barrels per day, making it the world’s largest refinery by capacity.
The refinery’s link with NNPC is integral to Nigeria’s strategy to boost domestic refining capacity and reduce dependence on imported refined petroleum products.
The Dangote Refinery, which began operations last year, is critical in Nigeria’s ambition to reduce dependence on imported refined petroleum products.
Meanwhile, Ojulari led a high-level delegation to the NNPC booth at the ongoing ADIPEC 2025, reinforcing the company’s commitment to global partnerships, energy equity, and sustainable investment.
The GCEO’s visit, which was welcomed by the executive vice president of Business Services, Sophia Mbakwe, and other senior executives, underscored NNPC’s strategic presence at one of the world’s most influential energy gatherings.
