- The business mogul revealed that the Nigerian oil company now owns only 7.2% of the refinery after the NNPC’s failed to pay the balance of its share, which was due last month, June
The Chief Executive Officer (CEO) of Dangote Refinery, Aliko Dangote, has disclosed that the Nigerian National Petroleum Corporation (NNPC) Limited no longer have a 20% equity in Dangote Refinery.
He made the disclosure during a press briefing at the refinery in Lagos on Sunday.
The business mogul revealed that the Nigerian oil company now owns only 7.2% of the refinery after the NNPC’s failed to pay the balance of its share, which was due last month, June.
He stated that while the NNPC had promised to provide the funds, it had been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2%.
“NNPC no longer owns a 20% stake in the Dangote Refinery. They were meant to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
It would be recalled that in March 2021, NNPC announced plans to raise the sum of $2.76 billion in credit facility to purchase a 20% stake in the Dangote Refinery.
The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, said the plan is to secure Nigeria’s place in the massive project, making it resource-dependent.
Data from NNPC Ltd’s audited financial report for 2022 released recently shows that the national oil company borrowed $1.3 billion to acquire the stake.
However, Dangote said the company has only paid enough to acquire 7.2% of the refinery and failed to fulfil its obligations that were due last month.
Reacting to the statement, the Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, said: “NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.”