NNPC now owns 7.2% of Dangote Refinery, not 20%, says Aliko Dangote

Our reporter/ The Nigerian National Petroleum Corporation (NNPC) Limited no longer owns a 20% stake in Dangote Refinery, Aliko Dangote, the chief executive officer of Dangote refiney said on Sunday.

Dangote, who made the disclosure during a press briefing at the refinery, revealed that the Nigerian oil company now owns only 7.2% of the refinery due to the NNPC’s failure to pay the balance of their share, which was due last month in June.

He stated that while the NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2%.

“NNPC no longer owns 20% stake in the Dangote refinery. They were met 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.

There were reports that NNPC was planning to raise the sum of $2.76 billion in credit facility to purchase 20% stake in Dangote refinery.

According to NNPC Chief Operating Officer, Refining and Petrochemicals, Mustapha Yakubu, this plan is to secure Nigeria’s place in the massive project, making it resource-dependent.

He said this is 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.

Also a recent data sourced from NNPC Ltd’s newly released audited financial report for 2022 show that the national oil company borrowed $1.3 billion to acquire the stake.

But on Sunday, Dangote, said the company has only paid enough to acquire 7.2% of the refinery, and has failed to fulfill its obligations that was due last month.