The Nigerian National Petroleum Company Limited (NNPC Ltd) announced plans on Tuesday to increase its equity stake in the $20 billion Dangote Petroleum Refinery from 7.2% to 20%, aiming to strengthen domestic refining capacity and reduce Nigeria’s heavy reliance on fuel imports.

Group CEO Bayo Ojulari revealed the ambition during a panel at the Abu Dhabi International Petroleum Exhibition and Conference, aligning the move with NNPC’s long-term strategy for energy self-sufficiency.

“The company is working towards increasing its stake to 20%,” Ojulari said, emphasizing the importance of local participation in the energy value chain. The refinery—Africa’s largest at 650,000 barrels per day—has already begun producing diesel and aviation fuel, with full petrol output expected by mid-2026. This could significantly cut Nigeria’s 90% dependence on imported fuel, which costs the country around $10 billion annually.

Aliko Dangote, president of the Dangote Group, confirmed plans to list 5–10% of the refinery’s shares on the Nigerian Exchange next year, following the model used for his cement and sugar businesses. “We’ll list incrementally based on market depth—first, let it demonstrate capacity,” he said, noting that he intends to retain 65–70% control.

The announcement comes as NNPC seeks partners to revive the Port Harcourt, Warri, and Kaduna refineries, which remain idle despite substantial rehabilitation investments. If successful, Nigeria could achieve over 1 million barrels per day in refining capacity, easing pressure on fuel subsidies and foreign exchange reserves.

While critics, including labor unions, warn against over-reliance on the Dangote refinery, Ojulari stressed transparency and compliance with the Petroleum Industry Act. He pointed to monthly performance reports since May as evidence of NNPC’s readiness for its own IPO, positioning the company as a “globally competitive energy firm.”

With inflation at 34% and the naira under strain, the stake increase is seen as a strategic step toward economic resilience. However, Dangote emphasized that the refinery must first prove its operational viability before broader investor participation.