NNPC Urged to Revive Refineries Amid Controversy Over Dangote Refinery Stake Expansion

The Nigerian National Petroleum Company Limited (NNPC) has come under fresh criticism from industry stakeholders over its reported interest in increasing its stake in the Dangote Petroleum Refinery, with calls for the company to instead focus on reviving the country’s long-dormant state-owned refineries.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, questioned the logic behind NNPC’s investment move, especially at a time when the Port Harcourt, Warri, and Kaduna refineries remain largely inactive despite years of rehabilitation spending.

His comments followed a statement by Aliko Dangote, President of the Dangote Group, who revealed that the NNPC had attempted to increase its 7.25% stake in the $20 billion refinery but was turned down as the company prepares for a future public listing.

Ukadike argued that it made more sense for NNPC to channel resources into restoring Nigeria’s own refineries rather than pursuing additional ownership in a privately-run facility. He also defended Dangote’s decision, stating that as a businessman, he has the right to protect his company’s structure and long-term vision.

Meanwhile, differing opinions continue to emerge within the sector. While IPMAN insists Nigeria’s refineries should be revived as a national priority, some stakeholders believe NNPC’s presence in the Dangote Refinery is strategically important for national interest, arguing that government participation ensures balance in a project of such economic scale. A senior NNPC official, however, maintained that the company is satisfied with its current 7.25% stake and remains committed to ongoing collaboration with Dangote Refinery in the country’s energy landscape.

source: punch