The Nigerian National Petroleum Company Limited (NNPC Ltd) has officially confirmed its ownership of a 7.2% stake in the Dangote Petroleum Refinery, a significant reduction from the initially agreed 20% share.
Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, issued a statement on Sunday addressing recent reports about the company’s stake in the 650,000 barrels per day refinery.
The clarification comes in response to comments made by Aliko Dangote, President of Dangote Group, during a press briefing at the refineryon Sunday.
Dangote started, “The agreement was actually 20 per cent, which we had with NNPC, and they did not pay the balance of the money up till last year, and 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 per cent. So NNPC, the government (sic) owns only 7.2 per cent, not 20 per cent.”
NNPC Ltd’s statement confirmed this reduction, explaining that the decision resulted from a periodic assessment of its investment portfolio.
“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,” the statement read.
The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, began production of diesel and aviation fuel in January 2024. The facility has already received multiple shipments of crude oil, including six million barrels at its two SPMs located 25 kilometers offshore.
In April, the refinery started supplying petroleum products to the local market. Aliko Dangote recently announced that Premium Motor Spirit (PMS), commonly known as petrol, refined at the facility is expected to hit the market by July.
The reasons behind NNPC’s decision to reduce its stake and the potential implications for the country’s oil and gas sector remain topics of interest for industry observers and stakeholders.
