July 15, (THEWILL) – The Nigerian National Petroleum Company (NNPC) Limited says the decision to limit its equity participation in the Dangote Petroleum Refinery was made months ago.
In a statement, issued by its spokesperson, Femi Soneye, the national oil company periodically evaluates its investment portfolio, to ensure it is in line with the company’s strategic objectives.
The clarification is in reaction to Aliko Dangote, Chief Executive Officer (CEO) of Dangote Refinery and Dangote Group, stating that NNPC no longer owns a 20 percent stake in his refinery.
In September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion. Revealing details of the transaction in its audited financial statements for 2022, the company had said the remaining $1.76 billion of the cost of equity investments made in the Dangote refinery would be paid upon completion of the refinery project or any other agreed date.
However, Dangote told media executives in Lagos on Sunday, that NNPC failed to pay the balance of their share, which was due in June, reducing its stake in the refinery to 7.2 percent only.
Confirming the development, Soneye said Dangote Refinery was informed several months ago of NNPC’s decision to limit its equity participation to the paid-up amount.
“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”, he said.
