Aliko Dangote, Africa’s richest man, has announced that the Nigerian National Petroleum Company (NNPC) Limited has reduced its stake in the Dangote Petroleum Refinery from 20% to 7.2%. This reduction is due to NNPC’s failure to meet its payment obligations for the remaining share, which was due in June.
Initially, NNPC had acquired a 20% stake in the refinery for $2.76 billion. The refinery is expected to start producing petrol in August and resume fertilizer production within two weeks.
“NNPC no longer owns 20 percent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
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.
