NNPC’s Stake In Dangote Refinery Drops to 7.2% Due To Unpaid Balance

The Chief Executive Officer (CEO) of Dangote Refinery, Aliko Dangote, has revealed that the Nigerian National Petroleum Corporation (NNPC) Limited no longer owns a 20% stake in Dangote Refinery.

Dangote disclosed this during a press briefing at the refinery on Sunday.

The business mogul revealed that the Nigerian oil company now owns only 7.2% of the refinery due to the NNPC’s failure to pay the balance of their share, which was due last month in June.

He stated that while the NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2%.

“NNPC no longer owns 20% stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.

In March 2021, Nairametrics reported that NNPC was planning to raise the sum of $2.76 billion in credit facility to purchase 20% stake in Dangote refinery.

The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, said this plan is to secure Nigeria’s place in the massive project, making it resource-dependent.

He said this is part of the then government’s plan to work with private oil companies to safeguard the country’s energy security without underming the plans to rehabilitate its own refineries.

In addition, a recent data sourced from NNPC Ltd’s newly released audited financial report for 2022 show that the national oil company borrowed $1.3 billion to acquire the stake.

However, Dangote, said the company has only paid enough to acquire 7.2% of the refinery, and has failed to fulfill its obligations that was due last month.

The Dangote Refinery is a massive oil project located in the Lekki Free Zone, Lagos, Nigeria, boasting a capacity of 650,000 barrels per day (BPD). Owned by the Dangote Group, it aims to become Africa’s largest oil refinery and the world’s biggest single-train facility.

The refinery is expected to generate 9,500 direct jobs and an additional 25,000 indirect jobs.