In a significant development aimed at resetting previously strained relations, Aliko Dangote, President and CEO of the Dangote Group, on Thursday paid a courtesy visit to the Nigerian National Petroleum Company Limited (NNPC Ltd.) headquarters in Abuja. The visit marks a renewed effort to foster collaboration between the two major players in Nigeria’s energy sector.
The NNPC confirmed the meeting via its official X (formerly Twitter) handle, noting that discussions focused on “mutually beneficial partnerships and fostering healthy competition” to ensure Nigeria’s energy security and shared economic prosperity.
Tensions Over Refinery, Equity Stake
Relations between the Dangote Group and NNPC had become strained under the former NNPC leadership led by Mele Kyari, especially after the launch of the 650,000 barrels-per-day Dangote Refinery in Lagos.
Initially, NNPC pursued a 20% equity stake in the refinery, committing $2.76 billion, of which $1 billion was paid upfront. However, NNPC later reduced its stake to approximately 7.2%, citing unfulfilled funding agreements.
Aliko Dangote responded publicly, asserting that NNPC had failed to meet agreed payment milestones, a claim NNPC refuted, crediting its $1 billion contribution as key to the refinery’s success. In response, Dangote Group’s spokesperson, Anthony Chiejina, clarified:
“$1 billion represents just 5% of the total investment in the Dangote Refinery,” calling NNPC’s claims a distortion.
Crude Supply Disputes and Legal Battle
Tensions further escalated when Dangote accused NNPC of failing to deliver crude oil as agreed, impeding refinery operations. A more contentious issue arose from NNPC’s continued importation of petroleum products, despite public commitments to end fuel imports—a practice Dangote Industries claimed undermined local refining efforts.
These grievances led to a legal suit filed by Dangote Industries against NNPC, alleging anti-competitive practices, particularly NNPC’s alleged refusal to offtake refined products from the Dangote Refinery while still importing fuel, thereby distorting market dynamics.
Leadership Signals New Era of Cooperation
The recent visit appears to signal a reset in relations under new NNPC leadership led by GCEO Bashir Bayo Ojulari. During the meeting, Dangote commended the new executive team’s experience and industry knowledge, while Ojulari hailed Dangote as a “humble African leader” whose industrial efforts uplift the continent.
“Both executives agreed to serve as Relationship Managers for their organizations,” NNPC stated, highlighting their commitment to sustained collaboration and productive competition in advancing Nigeria’s energy goals.
The renewed partnership is expected to resolve longstanding friction and align both entities toward enhancing domestic refining capacity, reducing fuel imports, and achieving long-term energy self-sufficiency for Nigeria.