NNPC Share in Dangote Refinery drops to 7%
The Chief Executive Officer of Dangote Refinery, Aliko Dangote says the share of Nigerian National Petroleum Corporation (NNPC) Limited in Dangote Refinery has dropped to 7.2% after the company failed to pay for the balance of its 20% stake.
Dangote disclosed this during a press briefing at the refinery on Sunday.
He said that the NNPC was unable to pay the balance of its 20%, which was due in June.
“NNPC no longer owns 20% stake in the Dangote refinery. They were to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
The NNPC has in March 2021 said it planned to raise $2.76 billion in credit facility to purchase 20% stake in Dangote refinery.
The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, had said that aim was to secure Nigeria’s place in the massive project, making it resource-dependent.
He had said it was part of the then government’s plan to work with private oil companies to safeguard the country’s energy security without underming the plans to rehabilitate its own refineries.
A recent data sourced from NNPC Ltd’s newly released audited financial report for 2022 shows that the national oil company had borrowed $1.3 billion to acquire the stake.
However, Dangote, said the company has only paid enough to acquire 7.2% of the refinery.
Dangote Refinery has the of producing 650,000 barrels per day (BPD), and aims to become Africa’s largest oil refinery and the world’s biggest single-train facility.
The refinery is expected to generate 9,500 direct jobs and an additional 25,000 indirect jobs, providing a substantial economic boost to the region.
Once fully operational, the refinery will produce approximately 50 million litres of petrol and 15 million litres of diesel daily, as well as 4.6 million tonnes of diesel and 4 million tonnes of jet fuel per year. The facility also has a fertiliser plant.
