Dangote rejects NNPC’s bid to increase stake in refinery

President of the Dangote Group, Aliko Dangote, has disclosed that the company turned down attempts by the Nigerian National Petroleum Company Limited (NNPCL) to acquire additional shares in the Dangote Petroleum Refinery beyond its existing 7.25 per cent stake.

Dangote made the revelation during an interview with Nicolai Tangen, chief executive officer of the Norwegian Sovereign Wealth Fund, while discussing plans to broaden ownership of the refinery through a future public listing.

According to the billionaire industrialist, the decision was driven by the company’s intention to allow wider public participation rather than concentrating ownership in the hands of a few investors.

He explained that although the national oil company had shown interest in expanding its stake, the refinery owners preferred a structure that would enable ordinary Nigerians to invest in the facility once it becomes publicly listed.

“If you look at our refinery, the national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it,” Dangote said.

He also identified inconsistent government policies as one of the biggest threats facing businesses and industrial investments in the country.

According to him, policy instability poses a greater concern to investors than other potential risks.

“The other biggest risk is government inconsistencies in policies,” he stated.

Dangote further disclosed plans to guarantee dollar-denominated dividends for future investors in the group’s major businesses, including cement, fertiliser, petrochemicals and the refinery.

“What we are announcing is that when you invest in any of our businesses going forward, in cement or in the refinery, in petrochemicals, or in fertiliser, we guarantee to pay you a dividend in dollars because we are very well into exports. Eighty per cent of our revenue will be in dollars,” he added.

The businessman also acknowledged the role played by several financial institutions in supporting the refinery project, including Afreximbank, Africa Finance Corporation, Zenith Bank, Access Bank, UBA, Standard Bank of South Africa and Standard Chartered Bank.