Dangote Offers 650,000 BPD Refinery for Sale to NNPC Amid Monopoly Claims

Aliko Dangote, Africa’s richest man, is contemplating selling his oil refinery to the Nigerian National Petroleum Company Limited (NNPCL) amid a dispute with a key equity partner and regulatory challenges in Nigeria.

The refinery, operational since last year with a capacity of 650,000 barrels per day, has struggled to secure crude oil supplies but has already processed 6.9 million barrels delivered by NNPC.

Despite facing these difficulties, Dangote remains committed to the refinery’s success and is open to divesting his ownership to further the country’s energy sector. He argues that selling the refinery could alleviate accusations of monopolistic behavior against him.

Currently, the refinery is operating at half capacity but is set to launch its first petrol rollout in August, having secured alternative crude oil supplies from Brazil and the US.

Additionally, Dangote is navigating a regulatory dispute regarding diesel fuel quality, with conflicting claims about sulphur levels from the Dangote Group and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Recently, he announced the decision to halt plans for entering Nigeria’s steel industry to avoid further monopolistic accusations. Throughout these challenges, Dangote emphasizes his commitment to creating a lasting impact on Nigeria’s energy sector as he approaches his 70th birthday.