The Nigerian National Petroleum Company (NNPC) Limited has reduced its investment in the Dangote Refinery from 20 per cent.
The chief executive officer of Dangote Refinery, Aliko Dangote, who made this known in Lagos on Sunday, revealed that the national oil company now owns only 7.2 per cent stake in the refinery.
In September 2021, NNPC had acquired a 20 per cent stake in the Dangote Refinery for $2.76 billion.
NNPC had initially financed the 20 per cent stake through a $1.036 billion funding from Lekki Refinery Funding Limited, of which $1 billion was paid to Dangote Refinery and $36 million was for transaction costs.
The remaining $1.76 billion was to be paid through a combination of a $2.5/barrel discount on 300,000 barrels per day of crude oil supplied to the refinery, and 100 per cent of NNPC’s portion of any dividends declared by the refinery.
Reacting to the statement by Dangote, the NNPC in a press release on Sunday evening, said the company “made a commercial decision to cap our investment at the amount already paid.”
“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.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,” NNPC spokesman, Olufemi Soneye, said in a statement on Sunday evening.