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Dangote Group has refuted NNPCL's claim of facilitating a $1 billion loan to address liquidity issues at the Dangote Refinery. The company clarified that the $1 billion represents only 5% of the total investment, and the partnership was credit-driven, not cash-based, with NNPCL failing to meet its commitments.

The Dangote Group has denied the Nigerian National Petroleum Company Limited (NNPCL)’s claim that a $1 billion loan was key to resolving liquidity issues at the Dangote Refinery. In a statement released Wednesday by Anthony Chiejina, the Group's Chief Branding and Communications Officer, the company clarified that the $1 billion loan represented just 5% of the total investment in the refinery.

The partnership between Dangote Group and NNPCL, formed in 2021, was based on NNPCL’s role as the largest offtake of Nigerian crude oil and its exclusive supply of gasoline to the country. Under this agreement, NNPCL took a 20% equity stake in the refinery, valued at $2.76 billion, with $1 billion paid upfront and the remainder to be recovered over five years through crude oil deductions and dividends.

The Dangote Group dismissed claims of liquidity struggles, noting the generous payment terms offered to NNPCL. The refinery, still in the pre-commissioning phase in 2021, operated on a credit-driven agreement rather than a cash-based one.

The Dangote Group also disclosed that NNPCL failed to meet its commitment to supply 300,000 barrels per day of crude, which led to a revision of the payment terms. With NNPCL unable to meet the deadline, their equity share was reduced to 7.24%. The Dangote Group emphasized that the claim of NNPCL’s role in facilitating a $1 billion investment was inaccurate and misleading.