NNPC Stake With Dangote Refinery Cuts Down From 20% – Dangote

The Chief Executive Officer (CEO) of Dangote Refinery, Aliko Dangote, has revealed that the Nigerian National Petroleum Corporation (NNPC) Limited no longer owns a 20% stake in Dangote Refinery.

Dangote disclosed this during a media parley at the refinery on Sunday.

The business mogul revealed that the Nigerian oil company now owns only 7.2% of the refinery due to the NNPC’s failure to pay the balance of their share, which was due last month in June.

He stated that while the NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the refinery to 7.2%.

NNPC Stake now 7.2%
According to Alhaji Dangote, NNPC has only paid purchase consideration for 7.2% and was expected to pay the balance in June, however, they declined to proceed beyond the 7.2% stake.

“The agreement was actually 20% which we had with NNPC and they did not pay the balance of the money up till last year and then we gave them another extension up till June (2024) and they said that they would remain where they have already paid which is 7.2%. So NNPC, the government (sic) owns only 7.2% not 20%.” Dangote stated.

The statement is a surprise to most Nigerians who for years have been told by the government that it had a 20% stake in the refinery.

Nigerian State Oil company Group Managing Director, Mele Kyari stated in 2021 that the decision to own a stake in the refinery was driven by the profit potential of the refinery business and the need to have a say in a business of this magnitude, which borders on energy security for Nigeria and Africa, with huge implications for fiscal security of the country.