The Chief Executive Officer of Dangote Refinery, Aliko Dangote, has revealed that the Nigerian National Petroleum Corporation no longer owns a 20 percent stake in the refinery.
Dangote said this while briefing journalists in Lagos State on Sunday, July 14, 2024.
Dangote said NNPC now owns 7.2 percent of the refinery over failure to pay the balance of their share, which was due in June.
“NNPC no longer owns 20 percent stake in the Dangote refinery. They were met 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 said.
In March 2021, NNPC announced plans to secure a $2.76 billion credit facility to acquire a 20% stake in the Dangote refinery.
Mustapha Yakubu, NNPC’s Chief Operating Officer for Refining and Petrochemicals, emphasized the strategic importance of this move to bolster Nigeria’s involvement in the significant project, thereby enhancing its resource dependency.
He said that this initiative was aligned with the government’s strategy to collaborate with private oil companies while concurrently rehabilitating domestic refineries to safeguard the nation’s energy security.
According to NNPC Ltd’s audited financial report for 2022, the national oil company borrowed $1.3 billion for this acquisition.
However, Dangote Group clarified that they have only completed payment for a 7.2% stake in the refinery, failing to meet their obligations due the previous month.
The Dangote Refinery located in Lagos – the commercial hub of Nigeria is a monumental project boasting a capacity of 650,000 barrels per day (BPD). It aims to be Africa’s largest oil refinery and the world’s biggest single-train facility.
The refinery is anticipated to create 9,500 direct jobs and an additional 25,000 indirect jobs, providing a substantial economic boost to the region.
Upon full operation, it will produce around 50 million liters of petrol and 15 million liters of diesel daily, totaling 10.4 million tonnes of petroleum products annually.
Additionally, it will yield 4.6 million tonnes of diesel and 4 million tonnes of jet fuel per year. The facility also includes a fertilizer plant that will utilize refinery by-products as raw materials, further enhancing its economic and environmental impact.
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