“Take up Equity”: FG Tells NNPC to Buy Dangote, Others Local Refineries

• Minister of state for petroleum resources advised NNPC to invest in regional refineries
• According to the minister, FG is looking to encourage the national oil firm to acquire shares
• He stated that the government is requesting the NNPC to operate the four state-owned refineries under an alternative model

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Heineken Lokpobiri, the minister of state for petroleum resources (oil), has recommended that the Nigerian National Petroleum Company Limited invest in regional refineries rather than operating government-owned ones.

Lokpobiri stated this at the inaugural meeting of the Crude Oil Refineries Owners Association of Nigeria in Lagos on Tuesday, October 8, 2024.

In his speech, the oil minister stated that the federal government intends to encourage the national oil firm to acquire shares in the planned and existing private refineries instead of operating them.

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This is coming after the NNPC limited reduced its ownership of the Dangote refinery to 7.2% as opposed to the originally agreed 20%.

Refinery still not operating

The Punch reported that despite spending about $4 billion, the NNPC has not restored any of the moribund government refineries.

For about seven times, the company assured Nigerians that the Port Harcourt refinery would commence production. However, the situation remains the same as of September ending.

Speaking on Tuesday, Lokpobiri said the government has asked the NNPC to run the four government refineries on a different model. He said an advertisement was recently placed by the NNPC to give out the refineries to private sectors for optimal delivery.

“We intend to encourage the national oil company to take up equity with the upcoming and already established private refineries rather than running refineries. We will encourage NNPC Ltd to run the four governmental refineries on a different model. And you will recall that an advertisement was recently placed by the NNPC Ltd to give out refineries to private sectors to run optimally,” he stated.

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New fuel price looms as FG, NNPC, Dangote Refinery agree on new petrol lifting, subsidy payment

NNPC ends exclusive role

Legit.ng earlier reported that the NNPC reportedly ended its exclusive agreement to buy petrol from Dangote Refinery.

The decision now opens the door for independent marketers to buy directly from the Dangote refinery and negotiate their own prices.

Premium Times reports that NNPC's limited decision aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng