The Chief Executive Officer of Dangote Refinery, Aliko Dangote, revealed in a recent media briefing at the refinery that the Nigerian National Petroleum Corporation Limited’s stake in Dangote Refinery has reduced from 20% to 7.2%.
This reduction, Dangote explained, was due to NNPC’s failure to complete the payment for their agreed-upon 20% stake by the June 2024 deadline.
Initially, NNPC had committed to acquiring a 20% stake in the refinery but only completed the purchase consideration for 7.2%, citing challenges in meeting their financial obligations. Dangote clarified, “The agreement was actually for 20% which we had with NNPC, and they did not pay the balance of the money up till last year. We gave them another extension up till June, but they declined to proceed beyond the 7.2% stake.”
This revelation comes as a surprise to many Nigerians, as the government had previously announced and widely believed it held a 20% stake in the refinery.
Aliko Dangote also addressed other issues during the briefing, including challenges in crude oil supply for the refinery, which has necessitated sourcing from the United States and Brazil. He expressed optimism that new regulations from the government would help resolve these challenges.
Dangote Refinery, located in the Lekki Free Zone, Lagos, is set to be Africa’s largest oil refinery and the world’s largest single-train facility. With a capacity of 650,000 barrels per day (BPD), the refinery aims to significantly bolster Nigeria’s energy security and economic stability.
Once fully operational, Dangote Refinery is projected to create 9,500 direct jobs and an additional 25,000 indirect jobs. It is expected to produce approximately 50 million litres of petrol and 15 million litres of diesel daily, amounting to 10.4 million tonnes of petroleum products annually.
Additionally, the refinery includes a fertiliser plant that will utilize by-products from its operations, further enhancing its economic and environmental impact on the region.
The Nigerian government’s decision to initially acquire a stake in Dangote Refinery was part of efforts to secure the country’s energy future and stimulate economic growth through strategic investments in the oil and gas sector.
