Aliko Dangote confirms that NNPCL no longer owns a 20% stake in the Dangote Refinery, marking a significant shift in ownership.
Aliko Dangote, the chairman of Dangote Group and owner of Dangote Refinery, revealed that the Nigerian National Petroleum Company Limited (NNPCL) no longer holds a 20 per cent stake in the refinery during a press briefing at the facility on Sunday. He clarified that the NNPCL’s ownership has decreased to 7.2 per cent due to their failure to pay the remaining balance of their share, which was due in June.
Dangote emphasized that despite NNPCL’s assurance to provide the necessary funds, they have not fulfilled their financial obligations, resulting in the reduction of their stake in the $20 billion refinery to 7.2 per cent. He highlighted that the NNPCL was expected to pay the outstanding amount in June but has not done so, leading to the revised ownership percentage.
While Dangote made this announcement, NNPCL has not yet responded to the disclosure. In August 2021, the Group Chief Executive Officer of NNPCL, Mele Kyari, had informed lawmakers that the company had acquired a 20 per cent stake in Dangote Refinery. This development follows challenges faced by the refinery in securing crude oil supply due to high prices, with the facility planning to import crude from Brazil as reported by Bloomberg.
The 650,000 barrel-per-day refinery had accused international oil companies of hindering its operations by selling crude oil at inflated prices. Despite these challenges, the refinery remains committed to supplying fuel in Nigeria by mid-July 2024, after previously importing fuel from the United States of America.
