Dangote to list Refinery, fertiliser plant on stock market Q1, 2025
…Laments $500m loss over petrochemical facility delay in Ogun state
…As NNPC Ltd unable to pay for 20% stake
President of the Dangote Group, Aliko Dangote has revealed plans to list the Dangote refinery and Fertilizer company on the stock exchange by Q1 2025.
Dangote revealed that the decision to list the two subsidiaries comes as the conglomerate seeks to expand its investor base and unlock further value for shareholders.
The refinery, touted as Africa’s largest, is expected to significantly reduce Nigeria’s dependence on imported petroleum products and boost the country’s economy.
Similarly, the fertiliser plant is poised to revolutionise agriculture in Nigeria and across Africa by providing affordable and readily available fertilisers.
Likewise, Dangote at a media tour on Sunday, attributed the delay in securing a site for the Dangote Petrochemical Facility in Ogun State for a $500 million loss for his conglomerate.
This even as he revealed that the Nigerian National Petroleum Corporation (NNPC) Limited is unable to pay for its 20 percent stake in Dangote Refinery.
Speaking, Dangote attributed the financial setback to the protracted process of acquiring Olokola land for a petrochemical facility that cost him $500 million on the $2.5 billion initial drawdown on bank loans.
He expressed disappointment over the bureaucratic hurdles encountered, which significantly impacted the project timeline and overall costs.
“The three years and eight months delay by the Ogun State government over Olokola land for petrochemicals facility costs us $500m,” Dangote said.
Dangote said a total of $25 billion investments have been made in petrol refinery and fertiliser plants by the Dangote group over the past 10 years.
The business mogul said that the Nigerian oil company now owns only 7.2 percent of the refinery due to the NNPC’s failure to pay the balance of their share, which was due last month in June.
He stated that while the NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2 percent.
“NNPC no longer owns a 20 percent stake in the Dangote refinery. They were meant to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2 percent stake in the refinery,” he said.
He explained that his passion for an industrialised Nigeria is the sole reason he doesn’t have houses outside Nigeria.
He added that “the reason I don’t have a London or American house is solely because I wanted to focus on industrialisation in Nigeria.”
“I figured that if I had those houses, there would be one reason or the other for me to visit those places thereby causing distraction for me.
“I am very passionate about the Nigeria dream and apart from my Lagos house, I have another one in my home state Kano and a rented one in Abuja,” he revealed.
In her closing remarks, the Group Executive Director, Commercial Operations, Fatima Dangote, commended Mr Dangote for never giving up on the Nigerian dream.
She added that “I have not seen anyone as hardworking as my father, sometimes I wonder how he never gives up.”
“I wish we have a few more men like my father in Nigeria, the country will be a better place,” she said.
Data sourced from the National Bureau of Statistics (NBS) showed foreign investors shunned Ogun, Osun and 31 other states as Lagos, FCT, and Ekiti were the ones attractive to investors with each recording $2.78 billion, $593.58 million, and $12.7 million respectively.
Findings showed Dangote initially designed the petrochemical and refinery plant to be domiciled in the Olokola Free Trade Zone, straddling the states of Ondo and Ogun. The plan was somehow reportedly frustrated by unseen hands within the political space.
The then Governor Babatunde Fashola-led Government of Lagos State grabbed the golden opportunity which has now become a reality.
Responding, the Nigerian National Petroleum Company (NNPC) Limited disclosed that its decision to limit its equity participation in the Dangote Petroleum Refinery was made months ago.
In a statement on Sunday, Femi Soneye, NNPC’s spokesperson, said the national oil firm periodically evaluates its investment portfolio to make sure it is in line with the company’s strategic objectives.
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals,” he said.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.”
In September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion.
Revealing details of the transaction, NNPC, in its audited financial statements for 2022, said NNPC Greenfield holds the investment.
NNPC said the balance ($1.76 billion) of the cost of equity investments made in Dangote refinery would be paid upon completion of the refinery project or any other date agreed.
Dangote refinery commenced production on January 12.
