Aliko Dangote, chairman of Dangote Refinery, announced that the Nigerian National Petroleum Corporation (NNPC) Limited now holds only a 7.2% stake in Dangote Refinery. During a press briefing at the refinery in Lagos on Sunday, Dangote explained that the reduction from the initial 20% share occurred because NNPC failed to pay the remaining balance due in June. Although NNPC had promised to provide the funds, it was unable to fulfill its financial commitments.
“NNPC no longer owns a 20% stake in the Dangote refinery. They were meant to pay their balance in June but have yet to fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote stated.
In August 2021, NNPC Ltd, with former President Muhammadu Buhari’s approval, acquired a 20% stake in the refinery for $2.76 billion. The agreement also involved the national oil company supplying 300,000 barrels of crude daily to the refinery and taking a $3.3 billion loan from Afrexim Bank, to be repaid with crude. However, in January, the global Extractive Industry Transparency Initiative (EITI) expressed concerns about NNPC’s 20% share in the refinery, highlighting unanswered questions in other crude-backed loans. EITI’s Technical Director, Alex Gordy, called for greater transparency regarding the contract terms, including interest, repayment, and valuation details.
The refinery is set to increase production for Premium Motor Spirit (PMS), commonly known as petrol, with product sales expected to reach the local market in August. According to the company’s projection report, PMS production will begin this month, and sales to local distributors will start in August. The refinery plans to initially operate at 500,000 barrels per day (bpd), equivalent to about 15 cargoes monthly, aiming to reach full capacity of 650,000 bpd by the first quarter of 2025.
“Successful completion of the trial run in January 2024. Refined and intermediate products include polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel. Steady state production phase commenced in March 2024. Ramping up production to reach 500kbpd (15 crude cargoes a month) by next Aug, 550kbpd by end of the year, and 650kbpd by Q1 2025. Gasoline production to commence in July with sales from August,” the report indicated.
During the briefing, Dangote also revealed plans to list the refinery’s fertilizer and petrochemical businesses in the first quarter of 2025
