Aliko Dangote Offers to Sell 650,000 BPD Oil Refinery to NNPC

Africa’s wealthiest man, Aliko Dangote, has expressed his willingness to sell his multibillion-dollar oil refinery to the state-owned NNPC Limited. In an exclusive interview with Premium Times, Dangote stated, “Let them [NNPCL] buy me out and run the refinery the best way they can.”

The 650,000 barrel-per-day refinery, which began operations last year after a decade of construction and at a cost of $19 billion, was initially expected to cost significantly less. The facility was designed to reduce Nigeria’s dependence on imported fuel and save up to 30% of the foreign exchange spent on imports.

Dangote’s decision comes amid a dispute with a key equity partner and ongoing regulatory challenges in Nigeria. He emphasized that his offer is in response to accusations of monopolistic practices, which he deemed incorrect and unfair. “If they buy me out, at least, their so-called monopolist would be out of the way,” he said.

The refinery has faced numerous challenges, including operating at just over half capacity since January due to difficulties in sourcing crude oil from international producers. These producers either demand high premiums or claim unavailability of the product. Additionally, NNPC, once a key supplier, has delivered only 6.9 million barrels of oil to the refinery as of May, far short of the plant’s needs.

Dangote, aged 67, highlighted his readiness to step aside for the benefit of the country. “This refinery can help in resolving the problem, but it does appear some people are uncomfortable that I am in the picture. So I am ready to let go, let the NNPC buy me out, run the refinery,” he said, adding that the refinery’s success could ensure high-quality products and job creation.

Despite the challenges, Dangote remains committed to Nigeria’s development. Reflecting on advice from friends who cautioned him about investing heavily in the Nigerian economy, he acknowledged the current difficulties but remained focused on his country’s needs.

Recently, Devakumar Edwin, Vice President of Oil and Gas at Dangote Group, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of allowing the import of substandard fuel. This was countered by NMDPRA’s CEO, Farouk Ahmed, who claimed that diesel from Dangote Refinery and other local producers contained high sulphur levels.

In response, Dangote invited members of the House of Representatives to test the refinery’s diesel, which showed significantly lower sulphur content than imported samples. This, he argued, debunked Ahmed’s claims and demonstrated the refinery’s quality.

Additionally, Dangote announced halting plans to invest in Nigeria’s steel industry to avoid accusations of monopoly. “Our board has decided that we shouldn’t do the steel because if we do, we will be called all sorts of names like monopoly,” he explained.