•Court delivers ruling on NNPC’s objection to refinery’s suit March 18
•Oando offers shareholders additional stocks valued at N97.6 billion
Emmanuel Addeh and Alex Enumah in Abuja
In a significant milestone, the Dangote Petroleum Refinery yesterday announced that it successfully exported two jet fuel cargoes to Saudi Aramco, the world’s largest oil producer and a leading integrated oil and gas company globally.
Also, a Federal High Court in Abuja yesterday fixed March 18 for ruling in the notice of preliminary objection brought by the Nigeria National Petroleum Company Limited (NNPC) against the suit filed by Dangote Refinery.
In the same vein, Oando Plc, Nigeria’s leading integrated oil and gas company and the country’s first International Oil Company (IOC), has said it is rewarding its shareholders by offering them 1.28 billion additional shares in the form of stock dividend valued at N97.6 billion.
But President of Dangote Group, Aliko Dangote, a statement from the management of the $20 billion facility, said, revealed the export of jet fuel to Saudi Aramco on Tuesday during a visit by a team from the Nigerian Economic Summit Group (NESG) to both the refinery and Dangote Fertiliser Limited in Ibeju Lekki, Lagos.
Dangote said exporting products to the global markets, especially Saudi Aramco, was made easy because of his refinery’s world-class standards and advanced technologies.
“We are reaching the ambitious goals we set for ourselves, and I’m pleased to announce that we’ve just sold two cargoes of jet fuel to Saudi Aramco,” he was quoted as saying.
Since its production began in 2024, the Dangote refinery has steadily increased its output, and has now reached 550,000 barrels per day, from the initial 350,000 bpd.
Dangote reiterated the importance of the private sector in national development, asserting that Nigeria’s challenges could largely be overcome by providing gainful employment to its people.
He stated that the concept of a free market should not be used as a pretext for continued import dependence, highlighting that both developed and developing nations, including the USA and China, actively protect their domestic industries to safeguard jobs and promote self-sufficiency.
Dangote also cited the example of Benin Republic, where cement imports are restricted as part of a deliberate strategy to protect local industries, despite the proximity of his Ibese manufacturing plant.
“The President (of Benin Republic) is a personal friend, and my Ibese plant is just 28 kilometres from Benin, yet they refuse to allow imports to protect their local industries, most of which are grinding plants,” he stressed.
He further emphasised that the government stands to gain substantially when the private sector flourishes, noting that 52 kobo or 52 per cent of every naira Dangote Cement generates goes to the government.
Besides, Dangote pointed out the significant challenges involved in setting up industries in Nigeria, particularly the substantial capital investment required due to the lack of infrastructure. He stressed that investors are often forced to take on responsibilities for essential services such as power, roads, and ports – services that should be provided by the government.
In his remarks, NESG Chairman, Mr. Niyi Yusuf, commended Dangote for establishing the refinery – the largest single-train refinery in the world, stating that Nigeria needs more investments of that calibre to reach its $1 trillion economy goal.
“To achieve a $1 trillion economy, much of that must come from domestic investments. I joked during the bus ride that while others are dredging to create islands for leisure, you’ve dredged 65 million cubic tonnes of sand to create a future for the country.
“This refinery, fertiliser plant, petrochemical complex, and supporting infrastructure are monumental. My hope is that God grants you the strength, courage, and health to realise your ambitions and that in your lifetime, a new Nigeria will emerge,” Yusuf added.
He emphasised that such local industries are essential to Nigeria’s industrialisation and will help foster the growth of Small and Medium Enterprises (SMEs), adding that the NESG would continue to advocate for an improved investment climate to attract entrepreneurs, boost development, ensure food security, and address insecurity.
The NESG chairman lamented that Nigeria has become a dumping ground for foreign products and stressed that the country must support its entrepreneurs to become a global player.
“It’s inconceivable that a nation of over 230 million people, with an annual birth rate higher than the total population of some countries, is still dependent on imports to feed its citizens,” he observed.
Yusuf also praised Dangote’s bold vision for making Nigeria self-sufficient in several key sectors.
“The NESG is grateful, and I believe the nation is as well. This refinery represents the audacity of courage. It takes immense effort to do what you’ve done and still be standing and smiling. Thank you for inspiring us and showing that nothing is impossible.
“You’ve transformed Nigeria from a net importer of petroleum products to a net exporter. We’ve all read ‘Think Big’, but this is truly about thinking big. The message is clear: the private sector can bring about real change,” he added.
Yusuf, alongside NESG board members and stakeholders, toured the refinery and fertiliser plants, lauding the level of investment, technology, and sophistication of young Nigerian engineers running world-class laboratories and central control units.
The plaintiff had dragged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and six others to court over the issuance of licenses for the importation of petroleum products.
While NMDPRA is the 1st defendant, the NNPC, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited are 2nd to 7th defendants, respectively, in the originating summons, marked: FHC/ABJ/CS/1324/2024 dated September 6, 2024.
At yesterday’s proceedings, Mr. Abimbola Ademola (SAN), who moved the motion on behalf of the NNPC, urged the court to either strike out the suit for lack of jurisdiction or, in the alternative, strike out the name of NNPC from the suit.
Responding, plaintiff’s lawyer, Mr. George Ibrahim (SAN), urged the court to dismiss the preliminary objection by NNPC for being unnecessary. Ibrahim also prayed the court to allow the plaintiff’s application seeking to amend its suit.
After parties adopted their written submissions on the issues, the trial Judge, Justice Inyang Ekwo adjourned till March 18, 2025 for ruling.
Dangote Refinery in its suit is praying the court to nullify import licences issued by NMDPRA to the NNPC and the five other companies for the purpose of importing refined petroleum products.
Oando offers shareholders additional stocks valued at N97.6bn
Meanwhile, Oando Plc, Nigeria’s leading integrated oil and gas company and the country’s first International Oil Company (IOC), yesterday said it was rewarding its shareholders by offering them 1.28 billion additional shares in the form of stock dividend valued at N97.6 billion.
This is coming days after the Wale Tinubu-led company announced a record N4.1 trillion revenue for the year 2024 unaudited financial result, about 45 per cent growth from N2.9 trillion reported in 2023 and N65.5 billion in profit after tax. This was about 9 per cent growth from N60.28 billion reported the previous year.
A statement from the organisation said that this means shareholders will get more shares added to their investment portfolio at no extra cost, noting that the sheer size of the offering, with 1.28 billion shares distributed, makes it the biggest shareholder reward in Oando’s history.
This decision follows the approval of shareholders at the company’s 45th Annual General Meeting (AGM) held on December 17, 2024, authorising that: “The company may cause shares received pursuant to sub-resolution (b) above, and/or their cash equivalent to be distributed to shareholders of record at date(s) as may be determined by the board of directors, from time to time, on a pro-rata basis.”
Subsequently, Oando said the board of directors resolved to distribute the shares in two tranches at a meeting held on January 30, 2025.
“The total worth of shares valued at N97,562,157,676, based on Oando Plc closing share price of N76 as of January 30, 2025, will be distributed to its shareholders beginning with 641,856,301 ordinary shares at the close of business on February 14, 2025, and 641,856,300 ordinary shares at the close of business on June 30, 2025,” it added.
According to Oando, stock dividends are considered superior to cash dividends as shareholders are being given the choice of either keeping their return on investment or turning it to cash whenever they want, noting that with a cash dividend, that option is unavailable.
“In this instance Oando shareholders are getting a return on investment of over 10 per cent. The increase in shares also means an increase in potential future dividends, as the more shares a shareholder owns, the more dividends they can potentially receive.
“Furthermore, instead of paying cash, which could weaken the company’s future financial position, Oando is preserving value and ensuring shareholders benefit from future growth through this scheme. By distributing shares, the company can maintain a strong financial position, which is crucial for future growth and investment opportunities,” it added.
This positive news for Oando shareholders directly increases minority shareholders’ ownership stakes by one new ordinary share of 50 kobo each for every 12 existing ordinary shares of 50 kobo held by the shareholders without dilution, Oando stated.
The news comes in the wake of Oando’s robust performance in 2024, bolstered by its $783 million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024, which led to a bullish increase of over 500 per cent in its share price.
“The acquisition also significantly impacted the company’s full year 2024 financial results, resulting in a 45 per cent surge in revenue to N4.1 trillion. This strong financial performance should instill confidence in shareholders about the company’s prospects,” Oando added.
Building on the track record of 2024, Oando said it earlier won the award of Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025, saying that the future remains hopeful for shareholders.
This, it said, is made even clearer, with the Group Chief Executive, Wale Tinubu, mentioning in a recent statement that the company will prioritise cost optimisation, operational efficiency, streamlining processes, enhancing procurement, and leveraging technology to improve productivity across operations.
“This is just the first step in Oando’s ongoing commitment to enhancing shareholder value. By distributing the shares in two phases, Oando ensures that its stock price remains strong and stable, avoiding any sudden market drops,” the statement added.
