The Nigerian National Petroleum Company Limited (NNPC Ltd) has reacted to the announcement made by the Africa’s richest man, Aliko Dangote, that the National Oil Company no longer owns a 20 percent stake in his petroleum refinery.
Dangote, in a Press Briefing on Sunday in Lagos, announced that NNPC now owns 7.2 percent of the refinery over failure to pay the balance of their share, which was due at the end of June 2024.
Recall that in September 2021, NNPC acquired a 20% stake in the Dangote Refinery for $2.76 billion, which was to be paid through a combination of a $2.5/barrel discount on crude oil sales and dividends from the refinery.
But failed to fulfil this financial obligation at the set date, which was due at the end of June 2024, leading to a reduction in their share in the refinery.
In a swift reaction on Sunday, the NNPC Spokesman, Mr. Olufemi Soneye said that the NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals, adding that the decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.
“Several months ago, we made a commercial decision to cap our investment at the amount already paid. This decision was taken by NNPC Ltd and has no impact on our business,” he said.
The $20 billion Dangote Refinery has the capacity to process about 650,000 barrels per day of crude oil, making it the largest single-train refinery in the world.
The refinery commenced production of diesel, gasoline, and jet fuels in January 2024 and is expected to begin selling petrol to local marketers by August.
