The Nigerian National Petroleum Company Limited has explained why it has only a 7.2% stake in the $19 billion Dangote Refinery, rather than the widely expected 20%.
This was disclosed in a statement by the Chief Corporate Communications Officer of NNPC, Femi Soneye on Sunday
Soneye stated that they thoroughly reviewed and expressed their intention to cut their stake with Aliko Dangote several months ago.
Dangote revealed to reporters on Sunday that NNPC no longer owns a 20% share in the refinery.
He explained that this shift occurred because NNPCL failed to pay the remaining balance on their share, which was due in June.
However, in response, NNPC said “NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,” NNPC said.
It was earlier reported Dangote had disclosed that the NNPCL no longer owns a 20% share in the refinery.
He noted that the NNPC’s share had been reduced to 7.2% since the corporation failed to pay the remainder of their contribution, which was due in June.
He said “The agreement was actually 20% which we had with NNPC and they did not pay the balance of the money up till last year then we gave them another extension up till June (2024) and they said that they would remain where they have already paid which is 7.2%. So NNPC, the government, owns only 7.2%, not 20%.”
The Dangote Refinery is a major oil project located in the Lekki Free Zone in Lagos, Nigeria, with a capacity of 650,000 barrels per day. Owned by the Dangote Group, it intends to become Africa’s largest oil refinery and the world’s largest single-train complex.
The refinery is estimated to create 9,500 direct jobs and another 25,000 indirect jobs, resulting in a significant economic benefit for the region.
