Dangote Refinery CEO reveals NNPC stake reduction from 20% to 7.2% due to missed payments. $19 billion project on track for August petrol sales. Africa's largest refinery, located in Lagos, aims to boost Nigeria's refining capacity, reduce import dependency, and create jobs. Dangote reassures stakeholders despite ownership changes.
In a recent press briefing, Aliko Dangote, CEO of Dangote Refinery, disclosed that the Nigerian National Petroleum Corporation (NNPC) Limited no longer holds a 20% stake in the refinery as previously reported.
Instead, due to NNPC's failure to meet financial obligations, their ownership has decreased to 7.2%. Dangote emphasized that NNPC missed a payment deadline in June, resulting in the reduction of their stake in the $19 billion project.
The initial agreement between Dangote Refinery and NNPC was part of a strategy to secure Nigeria's energy future, with NNPC intending to invest $2.76 billion for the 20% stake.
However, according to Dangote, NNPC's contribution fell short, leading to the revised ownership structure. Despite these setbacks, Dangote reassured stakeholders that the refinery project remains on track and is poised to commence petrol sales to local marketers by August.
Located in the Lekki Free Zone, Lagos, Dangote Refinery is set to be Africa's largest oil processing facility, boasting a daily production capacity of 650,000 barrels.
Once operational, it aims to significantly boost Nigeria's refining capacity and reduce dependency on imported petroleum products.
The refinery's impact extends beyond fuel production, with plans to generate thousands of direct and indirect jobs, enhancing economic growth in the region.
Source: Nairametrics
