The Nigerian National Petroleum Company (NNPC) Limited has explained why its stake in the Dangote Petroleum Refinery was reduced from the initially agreed-upon 20 percent to 7.2 percent. According to NNPC spokesperson, Femi Soneye, the decision was a strategic move to divert resources towards developing Compressed Natural Gas (CNG) infrastructure across the country.....KINDLY READ THE FULL STORY HERE▶
“We observed that CNG is significantly cheaper, and worldwide, there’s a growing investment in clean, affordable alternatives,” Soneye said during a Brekete Family programme on Monday, August 12.
“Nigerians can fill their cars for two weeks with just N10,000 using CNG. Given that gas is abundant and cheaper in Nigeria, it’s a logical investment.”
In September 2021, it was reported that NNPC acquired a 20 percent stake in the Dangote Refinery, owned by Africa’s wealthiest individual, Aliko Dangote. However, Dangote recently revealed that the state-owned company’s stake had only acquired 7.2 percent. Additionally, the refinery is planning to sell the remaining unacquired 12.75 percent stake to service its loans.
However, Soneye emphasised that the decision to reduce NNPC’s stake was purely business-oriented and not an attempt to undermine the refinery’s success. The company remains a significant shareholder and is committed to the refinery’s prosperity.
“We invested billions of naira in the Dangote refinery. With a 7.2% stake, it’s clear we want the refinery to succeed,” Soneye affirmed.
The NNPC spokesperson also dismissed rumors of tension between the company and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Since commencing operations earlier this year, the 650,000-barrel-per-day refinery has faced crude supply challenges, leading to speculation about NNPC’s role. However, Dangote Refinery clarified that the primary issue is the International Oil Companies’ (IOCs) failure to comply with domestic crude supply obligations, despite efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“We’ve never accused NNPC of withholding crude. Our concern is that the NUPRC is enforcing compliance, but IOCs are not honoring their commitments to supply the required crude,” Dangote Refinery stated.
