Aliko Dangote, Chairman of the Dangote Petroleum Refinery, has announced plans to sell between five per cent and 10 per cent of the company’s shares on the Nigerian Exchange (NGX) Limited within the next year.
The move aligns the refinery’s strategy with other listed Dangote Group companies, such as Dangote Cement.
Share Sale and Ownership Structure
- Listing Timeline: The share sale is expected to happen over the next year, with the shares to be released gradually based on investor interest and market conditions.
- Target Ownership: Dangote stated that the group plans to retain 65 per cent to 70 per cent ownership of the refinery, opening up the remaining portion to strategic and public investors.
- Strategic Partnerships: The group is actively seeking partnerships with Middle Eastern investors to help finance the refinery’s massive expansion and support a new petrochemical project in China. Dangote noted that their business model is evolving to welcome new partners.
Expansion and Future Plans
The announcement comes as the refinery continues its aggressive growth strategy:
- Current Expansion: The refinery, which began operations in 2024, is already expanding its capacity from 650,000 barrels per day (bpd) to 700,000 bpd by the end of the year.
- Long-Term Goal: The ultimate aim is to reach 1.4 million bpd, which would make it the world’s largest single-location refinery.
- NNPC Stake: Dangote also hinted that the Nigerian National Petroleum Company Limited (NNPC Ltd.), which currently holds a 7.2 per cent share, could increase its stake once the refinery enters its next phase of growth.
The refinery is also expanding its chemical production, planning to boost polypropylene output and invest in base oils and linear alkylbenzene production. Furthermore, Dangote disclosed that a one-month maintenance shutdown may be necessary soon for final technical adjustments, though it will be carefully timed to avoid disrupting fuel supply.
