Dangote: Why we turned down NNPC's request to buy a larger portion of the refinery

 Aliko Dangote, the president of the Dangote Group and the richest person in Africa, has explained why his massive refinery prevented the Nigerian National Petroleum Company Limited from expanding its ownership of the Dangote Petroleum Refinery.

On Wednesday, May 13, Dangote revealed this in an interview with Nicolai Tangen, the CEO of the Norwegian Sovereign Wealth Fund.

After purchasing the shares for $1 billion in 2021, the NNPC now holds a 7.25% ownership in the $20 billion Lekki-based refinery. Prior to cutting back the agreement, the state oil firm had originally intended to purchase a 20% stake.

Dangote claims that the refinery turned down the NNPC's request for more equity because it intends to increase ownership and eventually make it possible for more Nigerians to participate through a public listing. He clarified that the corporation seeks to distribute the shares across a larger group of investors rather than further concentrating ownership.

The other biggest risk is government inconsistencies in policies, and we are addressing that one because if you look at our refinery, the national oil company already owns 7.25%, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it.” 

During the conversation, Dangote talked more about the personal sacrifices he made to establish his industrial empire in Nigeria. He disclosed that he sold his opulent residences in the US and the UK in order to devote all of his attention to his domestic businesses.

He made the decision to simplify his lifestyle and fully dedicate himself to his long-term industrial vision for Nigeria because, in his opinion, owning overseas properties frequently results in diversions and divided concentration.

“When I decided to go into the industry, you know what I did? I sold all my properties in the US. I had two houses in the US, big mansions, and I had a house in the UK. I wanted to really sit in Nigeria and concentrate,” he said.

"You know what I did when I made the decision to enter the industry? I sold every property I owned in the United States. I owned two large mansions in the United States and a home in the United Kingdom. "I really wanted to sit in Nigeria and focus," he remarked.