Lagos, Nigeria — Africa’s wealthiest industrialist, Aliko Dangote, has announced significant strategic changes for the Dangote Petroleum Refinery, including plans to list a minority stake on the Nigerian Exchange (NGX) Limited and an aggressive target to make the facility the world’s largest single-train refinery by capacity.
Mr. Dangote revealed that the group intends to sell between five and ten per cent of the refinery’s equity within the next year. This move is designed to attract new investors, expand operations, and mirror the successful public offerings of subsidiaries like Dangote Cement and Dangote Sugar Refinery.
Speaking in an interview with S&P Global on October 20, Dangote outlined the vision for diversified ownership, stating, “We don’t want to keep more than 65%-70%,” adding that the shares would be introduced gradually, pending investor demand and market capacity on the NGX.
This divestment strategy signals a shift in the ownership structure of the colossal project, which has been largely self-funded. “Our business concept is going to change. Now, instead of being 100 per cent Dangote-owned, we’ll have other partners,” he affirmed. The group is also actively exploring potential partnerships with Middle Eastern energy firms to support the refinery’s expansion and a planned new petrochemicals project in China.
Capacity Expansion to Exceed Global Benchmark
Simultaneously with the public offering, the company is targeting a substantial boost in the refinery’s processing capacity. The goal is to reach an output of 1.4 million barrels per day (bpd). If achieved, this capacity would surpass the world’s current largest refinery, the 1.36 million bpd Jamnagar facility in India, solidifying the Dangote plant’s status as a global leader.
The industrialist also provided an update on the technical operations, noting that while the facility is scaling up, most initial engineering challenges have been addressed. He indicated that while the Nigerian National Petroleum Company (NNPC) Limited currently holds a reduced 7.2 per cent stake, there is potential for them to increase their interest following the next phase of growth.
Regarding the plant’s operational hurdles, particularly with the residue fluid catalytic cracker, Dangote expressed confidence in the progress made: “We have resolved most, not all, but most of the problems. And I think we’re looking for a window when we shut down for another month.” This maintenance window will be critical to resolving the remaining technical issues and achieving the ambitious 1.4 million bpd capacity target.
