See NNPC's reply as Dangote says govt ownership in his refinery now very little

4 months ago 27

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 claim the stake reduction is 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

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 disclosed that the Nigerian state-owned oil firm NNPC's shareholding in his refinery has been reduced to 7.2%, contrary to the widely held notion of 20%.

Reports claim that the reduction is due to NNPC's limited failure to pay the balance of funding owed to Aliko Dangote.

While speaking to journalists on Sunday, July 14, Dangote noted that the agreement from the start with NNPC was actually 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 per cent of the refinery. For me that is okay.”

NNPC confirms 7.2% state in Dangote Refinery

Responding to Dangote in a statement, Chief Corporate Communications Officer, NNPCL, 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 650,000 barrels per day (BPD) massive oil project in the Lekki Free Zone, Lagos.

The plant has an 838 KTPA polypropylene facility, covers an area of approximately 2,635 hectares, and is seen as key to ending Nigeria's petrol challenges.