Nigerians Shocked as NNPC’s Stake in Dangote Refinery Falls to 7.2%

The Chief Executive Officer (CEO) of Dangote Refinery, Mr Aliko Dangote, has disclosed that the Nigerian National Petroleum Corporation (NNPC) Limited does not own the 20 percent stake in Dangote Refinery.
Dangote disclosed this at a press conference at the refinery on Sunday.
The business magnate revealed that the Nigerian Oil Company now owns only 7.2% of the refinery’s shares after NNPC failed to pay the balance of the shares it was due to pay last month in June.
He explained that NNPC had committed funds but failed to meet its obligations, reducing its shareholding in the refinery to 7.2%.
According to Alhaji Dangote, NNPC had only paid 7.2% of the purchase price and the balance was due to be paid in June. However, they refused to go beyond the 7.2% figure.

“The agreement was actually 20% which we had with NNPC and they did not pay the balance of the money up till last year and then we gave them another extension up till June (2024) and they said that they would remain where they have already paid which is 7.2%. So NNPC, the government owns only 7.2%, not 20%.” Dangote explained.
This statement came as a surprise to most Nigerians who had been told for years by the government that it held a 20% stake in the refinery. In 2021, Mele Kyari, Managing Director of the Nigerian National Petroleum Corporation Group, said the decision to participate in the refinery was driven by the potential benefits of the refining business and the need to have a say in a deal of this magnitude. It has major implications for Nigeria and Africa’s energy security and has major implications for the country’s financial security.
Earlier this year, Journalists reported that the 2022 audited financial statements of the Nigerian National Petroleum Corporation (NNPC) contained information indicating that the company held a 20% stake in Dangote Refinery, which it acquired for $2.76 billion. The stake was acquired through a $1.036 billion loan from Lekki Refinery Funding Limited, of which $1 billion was paid to Dangote Refinery and $36 million was paid as transaction costs.

Aliko Dangote also spoke on various subjects, including the challenges in supplying crude oil to the refinery, confirming that the crude oil is sourced from the United States and Brazil. He however explained that the government has stepped in to resolve the situation pending the implementation of new regulations.
In March 2021, Journalists reported that NNPC was planning to raise $2.76 billion in loans to acquire a 20% stake in Dangote Refinery.
NNPC Chief Operating Officer for Refining and Petrochemicals, Mustapha Yakubu, said the plan was aimed at securing Nigeria’s place in the mega project and making it dependent on the resources.
He said this was part of the then government’s plan to work with private oil companies to ensure the country’s energy security without compromising its own refinery rehabilitation plans.
However, Dangote said the company only paid enough to acquire 7.2% of the refinery, failing to meet its obligations that were due last month.
The Dangote Refinery is a large-scale oil project located in the Lekki Free Trade Zone, Lagos, Nigeria, with a production capacity of 650,000 barrels per day (BPD). Owned by the Dangote Group, it is the largest refinery in Africa and is set to be the largest single-line facility in the world.
The refinery is expected to create 9,500 direct jobs and a further 25,000 indirect jobs, bringing a significant economic boost to the region. Once fully operational, the refinery will produce approximately 50 million litres of gasoline and 15 million litres of diesel daily, equating to 10.
4 million tonnes of petroleum products per year.
It also produces 4.6 million tons of diesel and 4 million tons of jet fuel annually. Additionally, the facility houses a fertilizer plant that uses refinery by-products as a feedstock, further increasing its economic and environmental impact.