₦airaland Forum

The National Petroleum Corporation (NNPC) has reacted to reports that its stake in Dangote refinery reduced from 20% to 7.2%.

On Sunday, the Chief Executive officer of Dangote Group, Aliko Dangote in a press conference in Lagos revealed that NNPC’s 20% stake in the company’s refinery had dropped to 7.2%. He added that it was due to the Corporation’s failure to fulfil its financial obligations.

In his words; “NNPC no longer holds a 20% stake in the Dangote Refinery,”

“As a consequence of their inability to fulfill their financial commitments, their ownership in the refinery has been adjusted to 7.2%.”

“We had initially welcomed NNPC as a key partner in this crucial venture,”

“However, the delay in their payments has necessitated this adjustment in ownership structure.”

POLITICS NIGERIA recalls that in March 2021, NNPC announced that it would be pumping over $2.7 Billion dollars for a 20% stake in the refinery but ended up paying $1.3 billion to acquire the stake.

Reacting to the development the NNPC disclosed that the decision to cap its investment in Dangote was taken months ago as the investment was not inline with their goals.

A statement through its Chief Corporate Communications Officer, Olufemi Soneye read;

[b]“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals. [/b]The decision to cap its equity participation in the Dangote Refinery was made several months ago.”

DonFreshmoney:
This guy's think we are fools. Something is amis here.

1. NNPC LTD budgeted $2.7Billion as investment in Dangote but could do almost half. The remaining 1.4billion has either been looted. OR
2. The remaining 1.4billion dollars has been invested under a private individual/company in Dangote not as NNPC Ltd

DonFreshmoney:
This guy's think we are fools. Something is amis here.

1. NNPC LTD budgeted $2.7Billion as investment in Dangote but could do almost half. The remaining 1.4billion has either been looted. OR
2. The remaining 1.4billion dollars has been invested under a private individual/company in Dangote not as NNPC Ltd

Dogalmighty17:
If 2.7 billion Dollars gives NNPC a 20% stake, how does paying 1.3 billion dollars leave NNPC with a 7.2% stake?

Do these clowns think we are fools? What kind of reductionism is that? This is madness! You are investing in a private company that buys what you produce from another company in the US. The NNPC is a profit driven organization so how the hell didn't they position themselves to be sole crude suppliers to Dangote?

This refinery is a crime scene. Forget all that rubbish that he can't get crude from Nigeria. Importing from outside the country negates the reduced price of fuel Nigerians should hope to pay.

That's why that refinery is dragging to start supplying petrol locally. When they do and fix their price, compare the price with that of similar refineries around the world. You will know that we got ripped off.

I have no issues with whatever Mr Dangote is doing. He is first and foremost a businessman. He is out for profit.