Why We Capped Our Stake In Dangote Refinery –NNPC

The Nigerian National Petroleum Company (NNPC) Limited has said that the oil corporation made a deliberate commercial decision to cap its investment at the amount already paid for a stake in Dangote Petroleum Refinery.

Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd on Sunday stated this in response to the claim by Africa’s richest man, Aliko Dangote that the state oil company no longer owns 20 percent stake in Dangote Petroleum Refinery.

Speaking during a press briefing at the refinery on Sunday, Dangote said NNPC now owns 7.2 percent of the refinery over failure to pay the balance of their share, which was due in June.

“NNPC no longer owns 20 percent 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% stake in the refinery,” Dangote said.

In September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion.

Revealing details of the transaction, NNPC, in its audited financial statements for 2022, said NNPC Greenfield holds the investment.

NNPC said the balance ($1.76 billion) of the cost of equity investments made in Dangote refinery would be paid upon completion of the refinery project or any other date agreed.

Dangote refinery commenced production on January 12, 2024.

However, Soneye said “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.”