The Chief Executive Officer of Dangote Refinery, Aliko Dangote, has announced that the Nigerian National Petroleum Corporation (NNPC) Limited no longer holds a 20% stake in the refinery.
During a press briefing at the refinery on Sunday, Dangote stated that NNPC’s ownership had been reduced to 7.2% due to their failure to pay the balance of their share, which was due last month in June, as reported by Nairametrics.
In 2021, NNPC planned to raise $2.76 billion in credit to purchase a 20% stake in the Dangote refinery. According to NNPC Ltd’s audited financial report for 2022, the national oil company borrowed $1.3 billion to acquire the stake. However, Dangote clarified that the company has only paid enough to acquire 7.2% of the refinery.
“NNPC no longer owns a 20% stake in the Dangote refinery. They were supposed to pay their balance in June but have yet to fulfill their obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
After several years of delay, the $20 billion facility began producing diesel and aviation fuel in January 2024.
The refinery is ramping up production of Premium Motor Spirit (PMS), commonly known as petrol, with sales expected to reach the local market in August.
The refinery is projected to generate 27 million litres of diesel, 11 million litres of kerosene, and 9 million litres of jet fuel. It will source crude from various producers in Nigeria, including the country’s state oil company.
Starting with a capacity of 350,000 barrels a day, the refinery can load 2,900 trucks a day at its truck-loading gantries, and its products will conform to Euro V specifications.
