The Chief Executive Officer (CEO) of Dangote Refinery, Aliko Dangote, announced that the Nigerian National Petroleum Corporation (NNPC) Limited now owns a 7.2% stake, down from the previous 20%.
Dangote disclosed this during a press briefing at the refinery on Sunday. He attributed the reduction in NNPC’s stake to the corporation’s failure to pay the balance of their share, which was due last month in June.
He stated that while 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 a 20% stake in the Dangote refinery. They were supposed to pay their balance in June but have yet to fulfill the obligation. Now, they only own a 7.2% stake in the refinery,” Dangote said.
In March 2021, it was reported that NNPC planned to raise $2.76 billion in credit facilities to purchase a 20% stake in Dangote refinery. The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr. Mustapha Yakubu, said this plan aimed to secure Nigeria’s place in the massive project, ensuring resource dependency.
He added that this was part of the government’s strategy to collaborate with private oil companies to safeguard the country’s energy security while rehabilitating its own refineries.
Additionally, recent data sourced from NNPC Ltd’s newly released audited financial report for 2022 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 a 7.2% stake in the refinery and has failed to fulfill its obligations due last month.
The Dangote Refinery is a massive oil project located in the Lekki Free Zone, Lagos, Nigeria, boasting a capacity of 650,000 barrels per day (BPD). Owned by the Dangote Group, it 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, equating to 10.4 million tonnes of petroleum products annually.
It will also yield 4.6 million tonnes of diesel and 4 million tonnes of jet fuel per year. Moreover, the facility includes a fertilizer plant that will utilize by-products from the refinery as raw materials, further enhancing its economic and environmental impact.
