Nigerian billionaire industrialist Aliko Dangote has revealed that the Dangote Group turned down attempts by the Nigerian National Petroleum Company Limited to acquire a larger stake in the Dangote Petroleum Refinery.
The national oil company had purchased a 7.25 per cent share in the massive refinery project for $1 billion in 2021, with plans to increase its ownership by an additional 12.75 per cent before June 2024.
However, the proposed expansion of its stake never materialised.
Speaking during an interview with Nicolai Tangen, Dangote disclosed that NNPCL later sought to buy more shares in the refinery, but the request was declined.
According to him, the decision was driven by plans to eventually list the refinery publicly, allowing ordinary Nigerians and other investors the opportunity to own part of the business.
Dangote explained that while government policy uncertainty remains one of the biggest risks facing businesses in Nigeria, the company is taking steps to reduce such exposure through broader ownership participation.
“The national oil company already owns 7.25 per cent, and they wanted to increase it, but we declined because we want wider participation from Nigerians,” he said.
The business tycoon also announced plans to reward future investors in dollars, citing the group’s growing export earnings across its major industries.
Dollar Earnings
He stated that shareholders in the group’s cement, petrochemical, fertiliser, and refinery businesses would receive dollar-based dividends due to the company’s strong foreign currency revenue streams.
“About 80 per cent of our earnings will come in dollars because of exports,” Dangote noted.
Reflecting on the financing of the refinery project, he explained that the original strategy was to rely heavily on internally generated funds.
However, the sharp depreciation of the naira forced the group to seek support from several local and international financial institutions.
He credited lenders such as Afreximbank, Africa Finance Corporation, Zenith Bank, Access Bank, United Bank for Africa, Standard Bank, and Standard Chartered for helping bring the multi-billion-dollar refinery project to completion.
Personal Sacrifices
Dangote described the refinery’s success as exceeding expectations, noting that the outcome surpassed the company’s original projections.
He also shared personal sacrifices made during the development phase, revealing that he sold off luxury properties in both the United States and the United Kingdom to focus entirely on the refinery project and his investments in Nigeria.
The billionaire businessman said he now prefers staying in hotels during international trips instead of maintaining overseas homes, explaining that his focus remains fully fixed on achieving long-term business goals.
Dangote added that his investment philosophy is centred on producing goods that Nigeria heavily imports, using a backward integration strategy to meet local demand while boosting domestic production.
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According to him, the group targets industries that provide products people rely on daily, ensuring constant demand and long-term sustainability for its businesses.