Aliko Dangote, Africa’s richest man and founder of the Dangote Petroleum Refinery, has expressed disappointment over the Nigerian National Petroleum Company (NNPC)’s decision to reduce its stake in the refinery from 20 percent to 7.2 percent.
Speaking during an interview with Bloomberg TV on Monday, Dangote described the move as a “big mistake” by the national oil company.
In 2021, NNPC had acquired a 20 percent stake in the $2.76 billion deal, structured to be paid in phases. However, Dangote revealed that NNPC chose to restructure the agreement in July 2023, opting to reduce its ownership share.
“We structured an agreement where they would pay $1 billion upfront and the remaining balance through crude supply and profits,” Dangote explained. “But for reasons unclear to us, NNPC decided to reduce its stake to 7.2 percent, which we believe is a strategic misstep.”
According to Dangote, NNPC had initially agreed to pay the remaining $1.8 billion by June 2023, but reneged on the deal, choosing instead to retain the smaller stake. The billionaire businessman made it clear that the negotiations were “finished, dead, and completed,” with no plans for further discussions.
Despite the fallout, Dangote emphasized that his refinery’s petrol prices remain highly competitive, selling premium motor spirit (PMS) at 15 percent cheaper than NNPC’s imported products.
As the refinery continues operations, Dangote’s comments highlight the complexities of public-private partnerships in Nigeria’s energy sector, raising questions about the NNPC’s long-term strategy in the project.