Dangote Refinery IPO Success Linked To Deregulation, Subsidy Removal – Lokpobiri

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has attributed the success of the Dangote Refinery Initial Public Offering (IPO) to the Federal Government’s deregulation of the petroleum sector.

Lokpobiri stated this on Thursday at the Dangote Refinery IPO Investor Roadshow in Kano, where he explained that deregulation had fundamentally changed the structure of Nigeria’s petroleum market.

According to the minister, the Nigerian National Petroleum Company Limited (NNPCL) previously operated as the country’s sole importer of refined petroleum products, while crude oil was exported for refining abroad.

He said the situation had changed, noting that NNPCL no longer imports refined petroleum products and is also a shareholder in the Dangote Refinery.

Lokpobiri argued that the removal of fuel subsidy was necessary to prevent Nigeria from facing a severe economic crisis similar to what happened in Venezuela.

“Subsidy removal was the reason why Nigeria didn’t go the way of Venezuela; otherwise, Nigeria would have collapsed,” he said.

The minister also maintained that the subsidy regime did not benefit Nigerians as intended, alleging that it largely benefited a small group of people.

Speaking at the event, businessman and Chairman of the Dangote Group, Aliko Dangote, said Nigeria requires massive investment across several sectors to accelerate economic development.

Dangote listed energy, manufacturing, infrastructure, agriculture, technology and logistics among the areas requiring increased investment.

He said the scale of investment required was beyond the capacity of government, banks or foreign investors alone.

“The government cannot finance all of these, banks cannot finance all of it, and foreign investors cannot and should not be expected to finance all of it,” Dangote said.

The business mogul also highlighted Kano’s longstanding tradition of commerce and entrepreneurship, describing the city as a place where investment and wealth creation have deep roots.

“Commerce is not new to Kano, investment is not new to Kano, entrepreneurship is not new to Kano,” Dangote said.

He added that his own journey as an entrepreneur born and raised in Kano reflected the city’s culture of patience, enterprise and wealth accumulation.