How FG invested in the establishment of Dangote Refinery – NNPCL
The Nigerian National Petroleum Company Limited (NNPCL) has revealed that it secured a $1bn loan backed by crude oil to support the establishment of the 650,000 barrels per day Dangote Petroleum Refinery.
This statement comes after the Chairman of the Dangote Group, Aliko Dangote, claimed that the refinery was built without any incentives from the federal government.
Dangote asserted this while speaking at the 2024 Crude Oil Refinery-owners Association of Nigeria (CORAN) summit, held in Lagos in October.
“We built the Dangote Refinery without a single incentive from the government,” he said.
“To ensure sufficient feedstock availability, we will need to stop mortgaging crude. It is unfortunate that while countries like Norway are putting oil proceeds into a future fund, in Africa we are spending oil proceeds from the future,” Dangote added.
However, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, countered Dangote’s statement at the Energy Relations Stakeholders Engagement in Abuja on Monday.
Soneye said, “A strategic decision to secure a $1bn loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery.
Read also: Worker killed by roller machine at Dangote Cement — Police
“This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development.”
He further highlighted NNPC’s facilitation of the $3bn Gazelle loan, which he described as a critical intervention during Nigeria’s foreign exchange crisis.
“Under the visionary leadership of Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector. Additionally, Kyari facilitated the $3bn Gazelle loan, a critical intervention that helped stabilise the federation during a challenging foreign exchange crisis,” Soneye stated.
Soneye also addressed the revival of the Port Harcourt Refining Company, describing it as a major step towards achieving energy self-sufficiency in Nigeria. He emphasised NNPC’s commitment to boosting the country’s refining capacity.
Additionally, he noted that NNPC had spearheaded the adoption of Compressed Natural Gas (CNG) as an alternative energy source, offering Nigerians cleaner and more affordable solutions amidst rising global energy costs.
He added that NNPC had achieved a historic financial milestone, declaring profits for the first time in decades and exceeding its profit projections for 2024.
“As a responsible energy company, NNPCL will continue to strengthen Nigeria’s energy sector while solidifying its legacy as a transformative force and a global game-changer,” Soneye pledged.
The NNPC spokesperson reiterated the company’s dedication to collaboration, innovation, and sustainability, which he described as central to its strategic operations and aspirations.
“Together, we stand at the forefront of a transformative era in the global energy landscape, where collaboration, innovation, and sustainability are key to success,” he concluded.
Soneye affirmed NNPCL’s commitment to fostering meaningful stakeholder relationships while delivering value across the energy value chain and driving Nigeria’s energy security and economic growth.
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