Dangote Offers $20 Billion Oil Refinery for Sale to NNPC

Billionaire Aliko Dangote is in a new conflict with a major partner at his refinery, adding to his ongoing disputes with Nigerian regulators.

Recently, Dangote announced that the Nigerian National Petroleum Corporation (NNPC) Limited’s share in his refinery has dropped from 20% to 7.2% because it didn’t pay the full amount for its stake.

Dangote responded clearly: “Let them (NNPCL) buy me out and run the refinery themselves. They’ve called me a monopolist, which is unfair and wrong, but fine.

If they buy me out, I’ll be out of their way.” He continued, “We’ve had fuel crises since the 70s. This refinery can help solve the problem, but some people seem uncomfortable with my involvement. So, I’m ready to step aside and let NNPC take over.”

The $20 billion refinery, which started operating in January, is seen as a major development for Nigeria and Africa’s energy sector.

However, it has faced challenges in getting enough crude oil from Nigeria. The refinery, which plans to release its first batch of petrol to the Nigerian market in August, has been running at just over half its capacity.

Despite being Africa’s largest oil producer, Nigeria deals with theft, pipeline damage, and low investment. This has forced Dangote to import crude from Brazil and the United States.

In an earlier interview with Reuters, Dangote Refinery’s senior executive Devakumar Edwin mentioned they are in talks with Libya to get crude oil for the 650,000 barrels per day (bpd) plant and are also considering oil from Angola.

Recently, Nigeria’s Midstream and Downstream Petroleum Regulatory Authority claimed that the sulphur content in Dangote’s gasoil is higher than the allowed limit of 200 parts per million (ppm). Dangote denied these claims, saying the products from his refinery meet all required standards.

In a major decision, Dangote has now halted plans to build a new steel plant in Nigeria after the government accused him of trying to create a monopoly with his refinery.