The Nigerian National Petroleum Company Limited (NNPCL) has responded to Aliko Dangote’s statement that NNPC’s equity in the over $20 billion Dangote refinery is now 7.5 percent, contrary to the widely believed 20 percent.
In a statement released on Sunday by the company’s Chief Corporate Communications Officer, Femi Soneye, NNPCL explained that its decision to reduce its investment in the refinery was a well-considered move.
It said, “Several months ago, we made a commercial decision to cap our investment at the amount already paid. This decision was taken by NNPC Ltd and has no impact on our business.”
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals,” said a spokesman for the company.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,
Dangote had on Sunday, said NNPCL no longer owns a 20 per cent stake in the Dangote Petroleum Refinery.
Speaking during a press briefing at the refinery on Sunday, Dangote said NNPCL now owns 7.2 per cent of the refinery over failure to pay the balance of their share, which was due in June.
According to Aliko Dangote, NNPC’s stake dropped to 7.2 per cent over the company’s failure to pay the balance of its share, which was due in June. The 20 per cent interest in the $20bn Dangote refinery is valued at $2.76 billion.
“NNPC no longer owns a 20 per cent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
Last December, Aliko Dangote began operations at his $20 billion refinery in Lagos, starting with a production capacity of 350,000 barrels per day.
The refinery aims to reach its full capacity of 650,000 barrels per day by the end of the year. Currently, it supplies diesel and aviation fuel to marketers in Nigeria, with plans to start petrol supply in August.
The controversy arises as Nigerians hope that refining Premium Motor Spirit (petrol) at the facility will reduce the country’s reliance on petrol imports, thereby lowering local prices.
However, Dangote has expressed frustration over obtaining Nigerian crude for the refinery. According to a Bloomberg report, the refinery purchased about 24 million barrels of crude from the United States.
Responding to Dangote’s crude importation, Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), stated in May that the decision to import US crude might be part of the refinery’s business model.
On Sunday, Dangote announced that his refinery would begin rolling out petrol in August 2024, having resolved its crude oil supply issues with the NNPCL and the Federal Government.