NNPC no longer owns 20% stake in our refinery – Dangote
The Nigerian National Petroleum Corporation (NNPC) no longer holds a 20% stake in the Dangote Refinery, according to Aliko Dangote, the Chief Executive Officer of Dangote Refinery.
Speaking to journalists on Sunday in Lagos, Dangote revealed that NNPC’s stake has been significantly reduced due to unmet financial obligations.
“NNPC no longer owns a 20% stake in the Dangote refinery. They were expected 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 stated.
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In September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion. The transaction, as detailed in NNPC’s audited financial statements for 2022, indicates that NNPC Greenfield holds the investment.
The balance of $1.76 billion was supposed to be paid upon the completion of the refinery project or another agreed-upon date.
The Dangote refinery commenced production on January 12, and this recent development raises questions about the future dynamics between NNPC and Dangote Refinery.
The reduced stake might influence operational control, profit-sharing, and strategic decisions.
Proofreading, editing by Sakinat Musa Abubakar and Maryam Sulaiman, Editor and Journalist at Neptune Prime.
