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Dangote Refinery to Float 5‑10% Stake on NGX Within Year, Sets 1.4m bpd Target

"The share release will be gradual, matching investor demand and market depth, and that the group intends to retain no more than 65‑70 % ownership"

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Aliko Dangote, founder of the Dangote Group, announced that the Dangote Petroleum Refinery will sell between 5 % and 10 % of its equity on the Nigerian Exchange (NGX) over the next 12 months, following the model used for Dangote Cement and Dangote Sugar.

He said the share release will be gradual, matching investor demand and market depth, and that the group intends to retain no more than 65‑70 % ownership.

“We don’t want to keep more than 65‑70 %,” Dangote said in an interview with S&P Global on October 20 adding that the timing of the offering will depend on appetite and liquidity.

The refinery also plans to lift its crude‑processing capacity to 1.4 million barrels per day (bpd), eclipsing the 1.36 million bpd Jamnagar complex in India.

Earlier this year, output was slated to rise from 650,000 bpd to 700,000 bpd by year‑end, with the higher 1.4 million bpd target set for the near future, though a specific date has not been fixed.

Dangote disclosed that the group is pursuing strategic partnerships with Middle‑Eastern investors to fund the refinery’s expansion and a new petrochemical venture in China, noting, “Our business concept is going to change. Now instead of being 100 % Dangote‑owned, we’ll have other partners.”

He also said the Nigerian National Petroleum Company Limited (NNPCL) could increase its current 7.2 % stake once the next growth phase is underway, but only after the refinery’s performance is demonstrated.

In addition, the company is developing linear alkylbenzene and base‑oils projects, and aims to boost polypropylene production from 1 million metric tonnes to 1.5 million metric tonnes annually.

Regarding the residue fluid catalytic cracker (RFCC) unit, Dangote acknowledged that most technical issues have been resolved, but a few remain.

See also  Dangote is Nigeria's most valuable brand for 2020 trailed by MTN, Globacom

“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,” he said.

He stressed that any maintenance shutdown will be scheduled to avoid the year‑end fuel demand surge.

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