Aliko Dangote, CEO of Dangote Refinery, revealed that NNPC Limited has divested its 20% stake in the refinery.
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.
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.
“NNPC no longer owns a 20% stake in the Dangote refinery. They were due 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.
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 liters of diesel, 11 million liters of kerosene, and 9 million liters of jet fuel, is expected to source crude from various producers in Nigeria, including the country’s state oil company.
The refinery, eagerly anticipated, will begin operations with a capacity of 350,000 barrels a day. It can load 2,900 trucks daily at its truck-loading gantries, and its products will meet Euro V specifications.
