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 in Lagos 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 its share, which was due last month, June.
He stated that while the NNPC had promised to provide the funds, it had been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2%.
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“NNPC no longer owns a 20% stake in the Dangote Refinery. They were meant 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.
It would be recalled that in March 2021, NNPC announced plans to raise the sum of $2.76 billion in credit facility to purchase a 20% stake in the Dangote Refinery.
The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, said the plan is to secure Nigeria’s place in the massive project, making it resource-dependent.
Data sourced from NNPC Ltd’s audited financial report for 2022 released recently shows 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 failed to fulfil its obligations that were due last month.
Reacting to the statement, the Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, 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.”
On why he is investing heavily in Nigeria despite the harsh operating environment, Dangote said his investment was because of his patriotism and love for the country.
He said it was satisfying that he was creating job opportunities for thousands of Nigerians.
“Apart from my houses in Lagos and Kano, I don’t have any other house anywhere. I am still a tenant in Abuja,” he said.
He also said his wish was to be remembered for the value he added to Nigeria’s economic development after he was gone.
On what he was planning to do going forward considering that the refinery, which is the largest single train edifice in the world, has been successfully delivered, Dangote said government’s policies remain the key to what he will invest in.
“Policy inconsistencies could affect what we do. We have gas-related projects in our plans, but this depends on how government policies favour our operations,” he said.
“Manufacturers create jobs, they invest their money to help the economy, but when you import, you are encouraging poverty.
“The best way is to build factories and produce what you import. The PIA is saying that once there is enough capacity, there is no reason to import.
“In Africa today, only Algeria and Libya have the capacity to feed their local markets. Our refinery has the capacity to satisfy our local demands and we have more to export,” he said.
Dangote also said he believes his refinery will stand the test of time, adding that green energy is good, but it will take a long time to replace fossil fuel.
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