According to Aliko Dangote, the owner of Africa’s largest refinery, the Nigerian state-owned oil company NNPC’s stake in its refinery has decreased from 20% to 7.2% as a result of its inability to make the remaining finance payments.
NNPC has opted to cap its shareholding at 7.2%, which it has paid for and was informed to the Dangote refinery, according to NNPC spokesperson Olufemi Soneye in a statement.
The 650,000 barrels per day refinery’s shares were agreed to be purchased by NNPC for $2.7 billion three years ago. The company is currently negotiating another oil-backed loan to strengthen its finances.
However, Dangote informed reporters at a press conference held at the factory on the outskirts of Lagos on Sunday that NNPC had not fulfilled its end of the bargain, as the BusinessDay daily published on Monday.
“NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) 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 was quoted as saying.
In addition to the mounting debt it owes gasoline suppliers, NNPC’s financial reserves have been further eroded by the expense of gasoline subsidies. Because of pipeline vandalism, oil theft, and a lack of investment, Nigeria’s production is limited, making it difficult for the Dangote refinery to obtain adequate quantities of crude locally.
The refinery will have to import American crude to operate at full capacity the following year.
In the first quarter of 2025, according to Dangote, the refinery and a fertilizer plant located in the same complex should go public on the Nigerian stock exchange.
The refinery sought to seek a dual listing on the London and Lagos bourses, according to a top corporate official in May.