NNPC No Longer Owns 20% Of Dangote Refinery Over Unpaid Balance

The chief executive officer of Dangote Refinery, Aliko Dangote, has revealed that the Nigerian National Petroleum Company (NNPC) Limited has reduced its investment in the Dangote Refinery from 20 per cent.

Dangote said NNPCL now own only 7.2 per cent stake in the refinery.

He disclosed this in Lagos on Sunday, while taking journalists on a tour of the refinery.

Dangote said NNPC now owns 7.2 per cent of the refinery over failure to pay the balance of their share, which was due in June.

It would be recalled that NNPC in September 2021, acquired a 20 per cent stake in the Dangote Refinery for $2.76 billion.

READ ALSO: NNPC, Schlumberger Sign Agreement to Boost Upstream Operations

NNPC had initially financed the 20 per cent stake through a $1.036 billion funding from Lekki Refinery Funding Limited, of which $1 billion was paid to Dangote Refinery and $36 million was for transaction costs.

The remaining $1.76 billion was to be paid through a combination of a $2.5/barrel discount on 300,000 barrels per day of crude oil supplied to the refinery, and 100 per cent of NNPC’s portion of any dividends declared by the refinery.

Dangote said, “NNPC no longer owns a 20 per cent 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 per cent stake in the refinery.”

Reacting to the statement by Dangote, the NNPC in a press release on Sunday evening, said the company “made a commercial decision to cap our investment at the amount already paid.”

“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.”

“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.”