The Nigerian National Petroleum Co. Ltd. (NNPCL) and 650,000 barrel per day (bpd) Dangote Refinery have agreed to work together to improve energy security, drive economic prosperity, and grow domestic refining capacity with the renewal of a strategic alliance.

Signed on February 21, the deal was agreed following the visit of the NNPCL’s CEO, Bashir Ojulari, and a group of NNPCL officials to the plant, where high-level discussions took place, according to Premium Times.

Along with receiving a tour of the refinery, NNPCL representatives discussed strengthening operational and commercial relationships with their counterparts at Dangote.

In a statement referencing the talks, Ojulari praised Dangote Group CEO Aliko Dangote for his “vision” and “perseverance” in delivering the plant and described the partnership with the company as one that would “unlock synergies across assets, infrastructure, capital and markets,” and “provide visibility of all NNPC-Dangote business relations”.

Ojulari continued to note that the collaboration could yield significant upstream expansion opportunities for both companies, while also allowing them to move into shipping, trading, and gas supplies.

Furthermore, Ojulari also lauded Nigeria’s President, Bola Tinubu, for introducing investor-friendly reforms and demonstrating a commitment to sectoral transformation that has increased confidence among domestic and international investors.

Aliko Dangote said that Nigerians would be “beneficiaries of the synergy between Dangote Group and NNPC Ltd, because the collaboration will achieve economies of scale and unlock value across markets”.

Concluding the visit, both parties pledged increased cooperation and a commitment to delivering value for Nigerians.

The NNPCL holds a 7.25% stake in Dangote Refinery, which was reduced from 20% in 2024 due to non-payment, according to comments by Aliko Dangote.

The company had previously agreed to purchase the shares – worth $2.7bn – in 2021; however, Dangote told Nigerian news outlet BusinessDay that the NNPCL had since “failed” to meet their side of the bargain.

“[The] NNPCL no longer owns a 20% stake in the Dangote refinery”. He said in 2024. “They were to pay their balance in June but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery”.

Despite losing a significant portion of its stake in the company, retaining 7.2% of its stake in the plant is a strategic choice by the NNPCL amid Dangote’s plans to continue expanding its presence in Nigeria's downstream sector.