NNPC to Borrow $2.5billion to Fund Stake Acquisition in Dangote Refinery
- The Nigerian National Petroleum Corporation is planning on securing $2.5 billion from the African Export-Import Bank to buy a stake in the Dangote refinery
- The government-owned company said it wants to become a minority shareholder in the oil firm by purchasing a 20% stake in the largest refinery in Africa
- There are about six other refineries that NNPC said it wants to purchase a stake in as well in line with a new government policy on oil refiner
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About $2.5 billion will be borrowed by the Nigerian National Petroleum Corporation (NNPC) to finance its quest to acquire a minority stake in Dangote Refinery set for 2022.
Two weeks ago, the government-owned oil company had made its intention known to be a stakeholder in the refinery being built by Africa's richest man.
NNPC said it wants a 20 percent stake in Dangote Refinery and has begun negotiations with representatives of the company - that talk seems to have warranted a need for NNPC to raise $2.5 billion, according to Daily Independent.
NNPC has reportedly approached investor, African Export-Import Bank (Afreximbank) for the funds - this is $1 billion more than the $1.5 billion loan approved by President Muhammadu Buhari for the rehabilitation of the Port Harcourt refinery.
Source: Getty Images
Aside from Dangote Refinery, the oil importer is also aiming for stakes in five other privately-owned refineries within the country, most of which are still in the development phase.
NNPC is targeting refineries with a production capacity above 50,000 barrels per day (bpd). It stated that the decision to make the acquisition is in line with new government policy.
One of the refineries is owned by BUA Group, a company founded by a billionaire, Rabiu Abdulsamad. Both BUA and Dangote refineries have 200,000 and 500,000 bpd respectively.
Meanwhile, Legit.ng had earlier reported that the founder of Stanbic IBTC, Atedo Peterside, asked that the Federal Government negotiate with Twitter for damage control.
The investment banker said the situation has affected local and foreign investors, and the government needs to sit with the social media firm to boost investors' confidence.
He had also criticised the government for banning Twitter's operation within the country, stating it is a wrong move that will hurt Nigerians.
Source: Legit.ng
