NPPC's stake in Dangote Refinery has reduced from 20% to 7.2% - Dangote

According to the billionaire, the national oil company no longer owns a 20% stake in the Dangote Refinery, as its share now stands at 7.2%.

Dangote revealed this during a press briefing at the refinery facility in Lagos on Sunday, July 14, 2024.

He attributed the reduction to NNPC's failure to fulfil the balance of their share, which was due for payment in June last month.

He said despite its promise to provide the funds, the national oil company failed to meet the obligations, leading to a reduction of its stake in the $19 billion refinery.

“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.

Reports in 2021 revealed that NNPC was planning to raise the sum of $2.76 billion in credit facility to lock down a 20% stake in Dangote Refinery.

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At the time, NNPC Chief Operating Officer, Refining and Petrochemicals, Mustapha Yakubu, said the goal was to secure Nigeria's place in the multi-billion dollar project, making it resource-dependent.

Yakubu explained that the move was part of the government's plan to collaborate with private oil companies to safeguard the nation's energy sector without undermining the plan to rehabilitate its own refineries.

Meanwhile, data from NNPC Limited's latest audited financial report for 2022 show that the national oil company to out $1.3 billion to purchase the refinery stake.

However, Dangote said NNPC's deposits were only enough to cop 7.2% of the refinery and has failed to fulfil its obligations that were due last month.