NNPC reveals why stake in Dangote refinery was reduced to 7.2%

NNPC reveals why stake in Dangote refinery was reduced to 7.2%

The Nigerian National Petroleum Company (NNPC) Limited says
its decision to limit its equity participation in the Dangote Petroleum
Refinery was made months ago.

 

In a statement on Sunday, Femi Soneye, NNPC’s spokesperson,
said the national oil firm periodically evaluates its investment portfolio to
make sure it is in line with the company’s strategic objectives.

 

On Sunday, Aliko Dangote, Africa’s richest person, said the
NNPC no longer owns 20 percent stake in his refinery.

 

Dangote said NNPC now owns 7.2 percent of the refinery over
failure to pay the balance of their share, which was due in June.

 

In response, Soneye said Dangote refinery was informed
several months prior of NNPC’s decision to limit its equity participation at
the paid-up amount.

 

“NNPC Limited periodically assesses its investment portfolio
to ensure alignment with the company’s strategic goals,” he said.

 

“The decision to cap its equity participation at the paid-up
sum was made and communicated to Dangote Refinery several months ago.”

 

In September 2021, NNPC acquired a 20 percent interest in
Dangote refinery for $2.76 billion.

 

Revealing details of the transaction, NNPC, in its audited
financial statements for 2022, said NNPC Greenfield holds the investment.

 

NNPC said the balance ($1.76 billion) of the cost of equity
investments made in Dangote refinery would be paid upon completion of the
refinery project or any other date agreed.

 

Dangote refinery commenced production on January 12.

Source: NNPC reveals why stake in Dangote refinery was reduced to 7.2%

 - NigerianEye
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