By Joke Kujenya
THE NIGERIAN National Petroleum Company (NNPC) Limited has cut its stake in the Dangote Petroleum Refinery.
Aliko Dangote announced on Sunday that NNPC now holds only 7.2% of the refinery, down from 20%.
Femi Soneye, NNPC’s spokesperson, confirmed the decision.
NNPC says it had informed Dangote Refinery months ago that it would limit its equity participation to the amount already paid.
“NNPC regularly reviews its investment portfolio to ensure alignment with strategic objectives,” Soneye stated.
“The decision to cap its equity participation was communicated to Dangote Refinery several months ago.”
Despite promising to provide the necessary funds, NNPC failed to meet its financial obligations.
This failure resulted in the reduction of its stake in the $19 billion refinery.
Dangote highlighted this issue, stating, “NNPC was supposed to pay their balance in June but has yet to do so.
“They now own a 7.2% stake in the refinery.”
In September 2021, NNPC reveals it acquired a 20 percent interest in Dangote refinery for $2.76 billion.
According to NNPC’s audited financial statements for 2022, NNPC Greenfield holds the investment.
The balance of $1.76 billion was to be paid upon completion of the refinery project or another agreed date.
Meanwhile, Dangote refinery commenced production on January 12.
