Aliko Dangote, President and CEO of Dangote Group, recently visited the Nigerian National Petroleum Company Limited (NNPC) in a bid to repair the strained relationship between the two organizations. The visit comes after years of tension under the leadership of former NNPC Group CEO, Mele Kyari.
According to a report by Emmanuel Addeh in Abuja, discussions during the visit were focused on fostering collaboration and promoting healthy competition, with the goal of advancing Nigeria’s energy security.
During the meeting, Dangote emphasized the importance of working together to overcome challenges and ensure long-term prosperity for both organizations. He praised the new NNPC leadership, under Bashir Bayo Ojulari, for its deep industry knowledge and experience. In turn, Ojulari commended Dangote’s leadership, calling him a “humble African leader whose achievements have brought pride to the continent.”
The relationship between NNPC and Dangote Group soured in recent years, particularly due to disagreements over the Dangote Refinery project. Initially, NNPC had planned to acquire a 20% stake in the refinery but reduced its investment to around 7.2% after failing to meet agreed-upon funding milestones.
Despite NNPC’s claims that its initial $1 billion investment played a key role in the refinery’s success, Dangote’s spokesperson clarified that the amount accounted for only a small fraction of the total investment in the project.
Additionally, the two companies were involved in disputes over crude oil supply agreements, with Dangote accusing NNPC of not fulfilling its commitments, leading to operational challenges at the refinery.
A particularly contentious issue was the NNPC’s continued importation of petroleum products despite claims of an end to imports and the refinery’s growing capacity to meet domestic demand. This led to legal action from Dangote Industries, alleging anti-competitive practices by NNPC.
The recent meeting signals a shift in approach, with both leaders expressing a commitment to continued collaboration and fostering a competitive environment that benefits Nigeria’s energy sector and economy. The two executives agreed to act as relationship managers for their organizations, ensuring sustained productive cooperation.
Article updated 1 month ago. Content is written and modified by multiple authors.
