The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, has criticised the Nigerian National Petroleum Company Limited (NNPC) for attempting to expand its stake in the Dangote Petroleum Refinery while government-owned refineries remain dormant.
Ukadike reacted after the President of the Dangote Group, Aliko Dangote, revealed that the refinery turned down NNPC’s request to increase its existing 7.25 per cent stake in the $20bn facility.
Speaking during an interview with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Nicolai Tangen, Dangote explained that the company declined the proposal because it intends to list the refinery publicly to allow broader Nigerian participation.
In response, Ukadike questioned the rationale behind NNPC’s move, stressing that the corporation should instead channel resources into reviving the Port Harcourt, Warri, and Kaduna refineries, which have remained largely non-functional despite huge rehabilitation costs.
He maintained that Dangote, as a private investor, reserves the right to reject any offer that does not align with his business strategy, adding that the refinery owner may be seeking to avoid unnecessary complications and retain operational control.
Ukadike further urged the NNPC to focus on repairing pipelines and restoring critical oil infrastructure rather than pursuing additional ownership in a refinery that is already operational.
Dangote noted that although NNPC initially planned to acquire a 20 per cent stake in the refinery, the national oil company later settled for 7.25 per cent after failing to meet payment obligations before the June 2024 deadline.
While some industry stakeholders argued that a larger government stake would better protect national interests and provide oversight in such a strategic asset, an NNPC official said the corporation remains satisfied with its current holding and described the ongoing collaboration between NNPC and the Dangote refinery as beneficial to Nigeria’s energy sector.
