The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, has criticised the Nigerian National Petroleum Company Limited over its bid to raise its equity stake in the Dangote Petroleum Refinery, citing the deteriorating condition of state-owned refineries.

Ukadike was responding to remarks by the President of the Dangote Group, Aliko Dangote, who disclosed that the refinery turned down NNPC’s request to increase its existing 7.25 per cent stake in the $20bn facility.

Dangote made the disclosure during an interview with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Nicolai Tangen.

Responding, Ukadike questioned the rationale behind the national oil company’s move to commit additional funds to the privately owned refinery while the Port Harcourt, Warri and Kaduna refineries under its management have remained largely dormant, despite billions of dollars spent on their rehabilitation.

“Why is NNPC trying to invest money in the Dangote refinery when it has three refineries that are not working? Why is NNPC not investing that money in those ones?” Ukadike asked.

He added, “The NNPC did not revive our refineries, but they want to look for where the refinery is already working to put money into it. Does that make sense?”

The IPMAN spokesman said Dangote was within his rights to decline the NNPC’s offer if he deemed it inconsistent with his business interests.

“If Dangote refused to sell more stakes to NNPC, he must have his reasons. Dangote is a businessman. He doesn’t want issues, unnecessary crises, and nepotism. He knows what he wants, and I also think he has enough cash to fund his business,” he stated.

Ukadike also called on the national oil company to prioritise the rehabilitation of key oil infrastructure nationwide rather than seeking to expand its stake in the refinery.

“The NNPC should repair the pipelines and revive the refineries instead of eyeing the Dangote refinery,” he said.

Dangote said during the interview that the NNPC had sought to acquire additional shares in the refinery after earlier purchasing a 7.25 per cent stake for $1bn in 2021.

He explained that the request was declined because the company intends to list the refinery publicly, giving more Nigerians the opportunity to own shares in the project.

The NNPC had originally targeted a 20 per cent equity stake in the refinery but eventually scaled back its holding to 7.25 per cent after it was unable to pay the outstanding balance before the June 2024 deadline.