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.
He made this known during a press briefing at the refinery on Sunday.
According to the billionaire, 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, Nairametrics reported.
“NNPC no longer owns 20% stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
In 2021, NNPC planned to raise $2.76 billion in the credit facility to purchase a 20% stake in the Dangote refinery.
NNPC Ltd’s audited financial report for 2022 shows that the national oil company borrowed $1.3 billion to acquire the stake. However, Dangote, said the company has only paid enough to acquire 7.2% of the refinery.
After several years of delay, the $20 billion facility, started producing diesel and aviation fuel in January 2024. According to reports, 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, expected to generate 27 million litres of diesel, 11 million litres of kerosene, and 9 million litres of jet fuel, is expected to source crude from various producers in Nigeria, including the country’s state oil company.
The long-awaited refinery is starting with 350,000 barrels a day, and can load 2,900 trucks a day at its truck-loading gantries, and the products from the Refinery will conform to Euro V specifications.
