Dangote Refinery updates stake ownership, NNPC’s share reduced to 7.2%

In a significant development for Nigeria’s energy sector, Aliko Dangote, CEO of Dangote Refinery, announced on Sunday that the Nigerian National Petroleum Corporation (NNPC) has seen its stake in the refinery reduced from 20% to 7.2%.

Speaking at a press briefing held in Lagos, Dangote clarified that NNPC’s reduced ownership was a result of their failure to meet financial obligations.

“NNPC no longer holds a 20% stake in the Dangote Refinery,” stated Dangote, highlighting that the corporation had missed a payment deadline in June. “As a consequence of their inability to fulfill their financial commitments, their ownership in the refinery has been adjusted to 7.2%.”

The Dangote Refinery, touted as Africa’s largest single-train refinery, has been a focal point of Nigeria’s efforts to enhance its refining capacity and reduce dependence on imported petroleum products.

Originally, NNPC had secured a 20% stake in the project, signaling a strategic partnership aimed at bolstering domestic energy production.

Read also: Abia workers issue ultimatum for indefinite strike

“We had initially welcomed NNPC as a key partner in this crucial venture,” Dangote remarked, reflecting on the earlier stages of the collaboration. “However, the delay in their payments has necessitated this adjustment in ownership structure.”

Despite the ownership adjustment, Dangote expressed confidence in the refinery’s operational readiness. The project, which has garnered attention for its scale and potential impact on Nigeria’s economy, represents a milestone in the nation’s quest for energy self-sufficiency.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now