NNPC Replies As Dangote Says Govt Ownership in His Refinery Only 7.2 Per Cent
- Aliko Dangote has revealed that the Nigerian government’s stake in the Dangote Refinery has been reduced
- The NNPC had earlier announced that it held a 20% stake in the refinery on behalf of the federal government
- Reports claimed the stake reduction was due to non-payment, and NNPC Limited has provided clarity on the matter
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
The Nigerian National Petroleum Company Limited (NNPCL) has clarified statements made by Aliko Dangote, Africa’s richest man, regarding its stake in the Dangote Refinery.
Dangote had disclosed that the NNPC’s shareholding in his refinery had been reduced to 7.2%, contrary to the widely held notion of 20%.
Source: Getty Images
Reports claimed that the reduction was due to NNPC’s limited failure to pay the balance of funding owed to Aliko Dangote.
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While speaking to journalists on Sunday, July 14, Dangote noted that the agreement with NNPC was 20%.
His words:
“The agreement we had with the NNPC was actually 20 per cent, but they didn’t pay the balance of the money as at last year.
"Then we gave them another extension up till June this year, but they later said they would remain with what they have already paid, which is 7.2 per cent.
“So, NNPC and the government own only 7.2% of the refinery. For me that is okay.”
NNPC confirms 7.2% stake in Dangote Refinery
Responding to Dangote in a statement, NNPCL's chief corporate communications officer, Olufemi Soneye, confirmed the stake reduction.
He explained:
“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."
Dangote Refinery is a massive oil project with 650,000 barrels per day (BPD) in the Lekki Free Zone, Lagos.
The plant has an 838 KTPA polypropylene facility, covers an area of approximately 2,635 hectares, and is key to ending Nigeria’s petrol challenges.
Dangote confirms petrol sales in August
Earlier, Legit.ng reported that Dangote, in a chat with journalists, confirmed that petrol production had already begun.
The billionaire also revealed that sales of petrol to marketers would commence from August 2024.
The refinery is expected to help reduce petrol prices from the current rate of over N700.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
