Dangote to List Refinery on NGX, Says NNPC Won’t Take Beyond 20% Stake

Image

By Dipo Olowookere

Dangote Refinery and Petrochemical Limited will be listed on the floor of the Nigerian Exchange (NGX) Limited in the future, the Chairman of the company, Mr Aliko Dangote, has revealed.

Mr Dangote, who is the richest man in Africa, confirmed this in an interview with the Financial Times published on Saturday.

The refinery will join other businesses of Mr Dangote currently trading their equities on the NGX, Dangote Cement, Dangote Sugar, and NASCON.

The oil facility, believed to be worth about $20 billion, was launched in May 2023 by the immediate past president of Nigeria, Mr Muhammadu Buhari, though it is yet to commence operations.

A few weeks ago, it was reported that the refinery was starved of crude oil supply by the Nigerian National Petroleum Company (NNPC) Limited, one of its major shareholders, frustrating its commencement of the production of premium motor spirit (PMS), otherwise known as petrol, which the country desperately needs as it currently relies on the importation of the commodity from Europe, especially from the Netherlands and Belgium.

But in the interview, Mr Dangote confirmed that this issue has been resolved, announcing that the refinery may begin to supply the nation diesel, kerosene and jet fuel from December 2023, which is just a few days away.

“We’re starting with 350,000 barrels a day. [We have sealed a deal for the first cargo of about 6mn barrels [for delivery in December],” he was quoted as saying.

According to him, “We have resolved all the issues of supply [with the NNPC,]” he said, refusing to blame the state-owned oil-firm for the difficulties in supplying crude oil to the refinery.

“Let’s not have the blame game here,” he declared in the interview.

However, he expressed optimism that the oil facility would be a game-changer for Nigeria, especially when it is listed on the domestic stock exchange, stressing that the NNPC was not attempting to increase its stake in the organisation with the supply-restriction tactics.

Recall that in 2021, the NNPC acquired a 20 per cent equity stake in Dangote Refinery for about $2.76 billion, and there have been speculations that the firm was planning to increase its shares in the company, which has the capacity to produce 650,000 barrels of crude oil per day and could generate $25 billion a year.

But Mr Dangote, who is 66, played down these rumours, saying, “I don’t think NNPC needs to buy more shares. I think they’re OK with what we’ve given them.”

Business Post reports that the commencement of production date of Dangote Refinery has been shifted more than three times in 2023.

In August 2022, the NNPC said the oil facility would begin operations by mid-2023, but this did not happen and at the commissioning of the refinery on May 22, 2023, in Lagos, Mr Dangote said the first product from the mega-complex structure “will be in the market before the end of July, beginning of August this year”.

In September 2023, the Dangote Group Executive Director, Mr Devakumar Edwin, told S&P Global Commodity Insights that the refinery will kick off production with 350,000 – 370,000 barrels per day of diesel and jet fuel by October, when the crude distillation unit, sulfur block and hydrogen plant should be online.

Share
Related Stories
Image
20-February-2024

African Businesses Can Now Harness Google AI to Simplify Search Advertising

Following its initial announcement in January, businesses across Africa can now use Google’s Gemini AI-powered chat-like tool for Search Ads. This intuitive tool is now fully operational and designed to help businesses in Africa and across the world boost their online visibility. In regions like Sub-Saharan Africa, where internet penetration is rapidly increasing, the ability to effectively reach customers through online advertising is becoming increasingly crucial for business growth. Google’s conversational experience takes the complexity out of ad creation, empowering businesses of any size to easily craft campaigns that resonate with local audiences. “Creating effective ads can be time-consuming, especially

Image
21-February-2024

Nigerian Stock Market Further Falls by 1.30% Amid Panic Selling

By Dipo Olowookere The Nigerian Exchange (NGX) Limited witnessed panic selling from investors on Tuesday as the foreign exchange (FX) market continued to dampen mood. The free fall of the exchange rate of the Naira to the Dollar in the currency market is making Naira-denominated investments unattractive and yesterday, it further inflicted a 1.30 per cent loss to the equity market. It was observed that traders sold off some of their blue-chip equities, particularly in the financial and industrial goods sectors. Business Post reports that the insurance index went down by 3.89 per cent, the industrial goods counter lost 3.62

Image
22-February-2024

Naira Appreciates at Official Market, Falls at Black Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the official market and the and the peer-to-peer (P2P) windows of the foreign exchange (FX) market but depreciated in the parallel market on Wednesday, February 21 as several scare tactics to ease the weakening local currency continues. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency gained 0.6 per cent or N8.66 on the greenback to close at N1,542.58/$1 compared with the previous day’s N1,551.24/$1. However, the Naira maintained stability against the Pound Sterling and the Euro in the spot market in the midweek session at

Image
20-February-2024

WACOT Rice Concludes Argungu Outgrower Expansion Programme

By Aduragbemi Omiyale An initiative of WACOT Rice aimed at enhancing rice production in Nigeria, the Argungu Outgrower Expansion Programme (AOEP), has been concluded, the company has confirmed in a statement. The scheme was put in place in 2020 by the subsidiary of Tropical General Investments (TGI) Group in collaboration with the USAID-funded West Africa Trade and Investment Hub. It was to leverage WACOT’s existing outgrower programme to improve the livelihoods of smallholder farmers by providing access to essential agricultural inputs, financing, and training on Yield Enhancement Techniques (YET), and Good Agronomic Practices (GAP). At the closing of the scheme

More Stories
Image
04-December-2020

Access Bank Triggers Gender-Based Violence Debate

By Ahmed Rahma With the increase in cases of gender-based violence (GBV) in the world, as well as in Nigeria, Access Bank ‘W’ Initiative organised a virtual webinar to discuss the issue to assist victims. The event themed Tackling the menace of gender-based violence in our society was held in partnership with the Nigerian Governors Wives against Gender-Based Violence (NGWA-GBA). It centred on the meaning and types of gender-based violence, contributing factors as well as how to respond, cope and ultimately put an end to the scourge. GBV is the most pervasive yet least visible human rights violation in the

Image
10-January-2017

7up, Total Crash Nigerian Stock Market by 0.88%

By Modupe Gbadeyanka Activities on the Nigerian Stock Exchange (NSE) closed in the red zone on Tuesday with a total of 25 stocks depreciating in price against 13 stocks that remained unchanged. Though the volume of transactions recorded on the floor of the NSE improved today compared with what was posted yesterday, however, this did not stop investors from losing about N81 billion at the close of the market. The Financial Services sector attracted stock market investors as it dominated the most trades’ charts on Tuesday. While Omoluabi Savings & Loans Plc led the table selling 93.5 million shares at

Image
29-March-2021

Buhari to Apply Gas to Propel Economy, Drive Industrialisation

By Aduragbemi Omiyale The enormous gas resources in the country would be fully utilised to uplift the economy and drive industrialisation, President Muhammadu Buhari has assured. At the unveiling of The Decade of Gas in Nigeria initiative in Abuja on Monday, Mr Buhari said the country’s capacity to produce about 600 trillion cubic feet of gas and the rising demand for cleaner energy sources were capable to help the nation achieve its economic diversification goal. “The rising global demand for cleaner energy sources has offered Nigeria an opportunity to exploit gas resources for the good of the country. “We intend

Image
29-June-2021

Afreximbank Gives Ogun $200m for Infrastructure

By Adedapo Adesanya The African Export-Import Bank (Afreximbank) has given the Ogun State Government the sum of $200 million to support infrastructural development. The fund, according to the bank, will be dedicated towards projects and other developmental initiatives embarked upon by the Dapo Abiodun-led administration in the state. The President and Chairman of the Board of Directors of the Afrexim Bank, Mr Benedict Oramah, made this known when he led the management of the bank on a courtesy visit to the Governor’s Oke-Mosan Office, Abeokuta, on Monday. He said the bank would partner with the state on ensuring that the

Image
10-December-2021

Nembe Oil Spill: Expert Wants Preservation of Failed Wellhead for Analysis

By Adedapo Adesanya An American university professor, Rick Steiner, has said between 532,000 and 1,064,000 barrels of crude oil has been spilt in the Nembe Oil Mining Lease (OML) 29 blowout, making the blowout one of the largest in world history. Mr Steiner in a letter to the Nigerian National Petroleum Corporation (NNPC) Limited advised that the failed wellhead of the Nembe oil spill should be preserved for independent engineering forensic analysis to determine the cause of failure. The professor, who is the Technical Advisor to the Ijaw Diaspora Council, said the failed wellhead should be assessed by either the

Image
05-November-2016

Kwara Vows To Sustain Tempo of Road Projects

By Modupe Gbadeyanka The Kwara State Government has pledged to continue with its pace of construction of roads in the state, aimed at boosting the economy of the state of harmony, as Kwara is fondly called. Speaking on Friday while inspecting the ongoing construction of Maigida-Arobadi road in Moro local government area, Kwara State Commissioner for Works and Transport, Mr Aro Yahaya, expressed satisfaction with the level of work done on the road and encouraged the contractor to sustain the tempo. Mr Yahaya assured the contractor that the state government will not disappoint in the area of funding. During the

Image
28-April-2023

Real Estate Stakeholder to Brainstorm at Metro & Castle’s Realtors Hangout

By Modupe Gbadeyanka Stakeholders in the real estate sector will on Saturday, May 6, 2023, gather at Metro Homes, Atlantic Layout, Lekki Gardens. Phase 4, Ajah, Lagos for the second edition of Realtors Hangout, a programme put together by a major player in the space, Metro & Castle. A statement from the organisers disclosed that the theme for this event is How To Become High Flyer in Real Estate Industry. They noted that experts, entrepreneurs, businessmen and women, intellectuals and customers would share ideas among themselves on the day of the workshop, and chart a course for the industry. The

Image
27-July-2021

Nigerian Economy Now in Tatters—PDP Governors

By Dipo Olowookere Governors elected on the platform of the Peoples Democratic Party (PDP), the main opposition party, have accused the All Progressives Congress (APC) led federal government of wrecking the Nigerian economy and turning the country “into a killing field.” On Monday, the opposition governors met in Bauchi State to discuss the state of the economy and security in the country. The gathering was chaired by the Governor of Sokoto State, Mr Aminu Tambuwal. At the end of deliberations, a communique was issued at the Governors blamed the administration of President Muhammadu Buhari for leaving the nation’s economy in

Ad
Ad
Recent Stories
Image
22-February-2024

Purple Real Estate Welcomes Umar, Oladimeji to Board

By Adedapo Adesanya Nigerian real estate platform, Purple Real Estate Income Plc, has made significant changes to its board, marking a pivotal moment in the company’s growth strategy amid current macro headwinds. The reshuffle brings on Mr Aminu Umar and Mr Olasunkanmi Oladimeji to join the board as Non-Executive Director and Executive Director. The duo of Mr Umar and Mr Oladimeji will take over from Mrs Osareme Archibong and Mrs Fiona Ahimie, both outgoing Independent Non-Executive Directors, according to notice on NASD OTC Securities Exchange, where the company trades its securities. Commenting on the changes, the Chairman of the board,

Image
22-February-2024

AFCON 2023: Nigerian Content Creators See 200% Rise in Revenue, Views

By Adedapo Adesanya Content creators in Nigeria saw a 200 per cent increase in views and revenue between December 2023 and February 2024, a new study shared with Business Post showed. According to new data released by StarNews Mobile, an African video streaming platform, content creators across Africa experienced a 300 per cent surge in revenues during the 2023 Africa Cup of Nations (AFCON) held between January 13 and February 11, 2024, reaffirming the massive surge in consumption of hyper-localized content from the continent. Based on metrics from StarNews Mobile’s platform, creators in Nigeria were only outshone by their peers

Image
22-February-2024

Two Die, 15 Rescued in Ikoyi-Lekki Link Bridge Boat Mishap

By Modupe Gbadeyanka Two persons have been confirmed dead in a boat accident that occurred on Wednesday night at the Ikoyi-Lekki Link bridge in Lagos. The Lagos State Emergency Management Agency (LASEMA), which confirmed the incident, stated that 15 persons were rescued in the mishap. The agency stated that the boat, which was conveying 17 passengers, was heading to the Ikorodu area of the metropolis from its take-off point, Sandfil, when it capsized at the Powerline area of the popular bridge. It said the body of a female passenger, who drowned, was recovered, while the corpse of the male passenger

Image
22-February-2024

NPPAN Targets $10bn Contribution to Nigeria’s GDP via Palm Biomass

By Adedapo Adesanya The federal government will sign a Memorandum of Understanding (MoU) with the Malaysian government to develop palm biomass in the country as part of efforts to utilise one of the undertapped farm produces in the country. Mr Alphosus Inyang, President of the National Palm Produce Association of Nigeria (NPPAN), made this disclosure, saying palm biomass is a multi-billion dollar economy. “Biomass simply means agricultural waste and we are talking about turning waste into wealth,’’ he said in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. The president said NPPAN was working with

Image
22-February-2024

Salesforce Introduces Clean Energy Programme Management

By Modupe Gbadeyanka A new solution to help electric, gas, and water utilities increase customer participation in clean energy programmes has been introduced by Salesforce. The initiative known as Clean Energy Programme Management for Energy & Utilities Cloud streamlines the launch, management, and oversight of energy efficiency, conservation, electrification, and EV charging programs. It helps utilities manage clean energy initiatives with connected data — like energy usage and billing information — and personalised engagement to promote relevant programmes. This platform also digitises and simplifies the application process for customers, participating contractors, and utility program staff to help increase clean energy

Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded

Image
22-February-2024

Naira Appreciates at Official Market, Falls at Black Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the official market and the and the peer-to-peer (P2P) windows of the foreign exchange (FX) market but depreciated in the parallel market on Wednesday, February 21 as several scare tactics to ease the weakening local currency continues. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency gained 0.6 per cent or N8.66 on the greenback to close at N1,542.58/$1 compared with the previous day’s N1,551.24/$1. However, the Naira maintained stability against the Pound Sterling and the Euro in the spot market in the midweek session at

Image
22-February-2024

Crude Oil Jumps as Geopolitical Tensions Persist

By Adedapo Adesanya Crude oil appreciated on Wednesday as geopolitical tensions continued in the Middle East and traders assessed signs of near-term supply tightness. Brent crude was up by 69 cents or 0.8 per cent to $83.03 a barrel while the US West Texas Intermediate (WTI) crude jumped by 87 cents or 1.1 per cent to settle at $77.91 per barrel. Houthi attacks on commercial vessels in the Red Sea and Bab al-Mandab strait have continued to stoke concerns over freight flows through the critical waterway. The Iran-aligned Yemeni Houthis have carried out repeated drone and missile strikes since November in

Image
22-February-2024

Investors Recover N165bn as FBN Holdings, BUA Cement, Others Gain

By Dipo Olowookere The bulls recaptured the Nigerian Exchange (NGX) Limited on Wednesday after the bears dominated for two straight days as a result of panic selling due to the macroeconomic environment, especially with the poor performance of the Naira in the foreign exchange (FX) market. During the midweek session, the local bourse finished higher by 0.30 per cent on renewed bargain-hunting activities by investors. This raised the market capitalisation of the domestic exchange by N165 billion to N55.464 trillion from N55.299 trillion, as the All-Share Index (ASI) grew by 301.71 points to 101,362.38 points from 101,060.67 points. Business Post