In a recent report by Fitch Ratings, it was disclosed that Dangote Refinery intends to sell a 12.7% stake in 2024 to help repay a significant syndicated loan that matures in August of that year. This decision comes after the Nigerian National Petroleum Company Limited (NNPC) opted not to increase its ownership in the refinery, a move Fitch believes could impact the refinery’s ability to fulfill its loan obligations.
Initially, the NNPC had aimed to acquire a 20% stake in the Dangote Refinery. However, it currently holds only 7.25%, following a $1 billion investment in 2021. Although the NNPC had the option to purchase an additional 12.75% by June 2024, it chose not to exercise this option and decided to maintain its stake at the current level. NNPC spokesperson Olufemi Soneye confirmed that this decision was communicated to Dangote Refinery several months ago.
Aliko Dangote, President of the Dangote Group, recently clarified that the NNPC’s actual ownership in the refinery is 7.2%, countering the widespread belief that the NNPC held a 20% stake. Dangote explained that while the initial agreement was for a 20% stake, the NNPC did not pay the remaining amount by the agreed deadline, resulting in a reduced share.
This situation has led to calls for greater transparency. Oby Ezekwesili, a former Minister of Education, has urged President Bola Tinubu to initiate an independent audit of the NNPC’s decision to limit its investment to 7.2%. Ezekwesili questioned why the government, which had borrowed $3.3 billion from Afriexim-Bank for this investment, did not complete the full acquisition. She believes that an audit would clarify the details of the Dangote Refinery-NNPC transaction and provide the public with the necessary insights.
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