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NNPC has repaid 60% of the $1.03 billion loan for its stake in Dangote Petroleum Refinery, amounting to $625 million. The stake has been reduced from 20% to 7.2% due to unpaid balances. The company plans to redirect investments toward compressed natural gas (CNG).

The Nigerian National Petroleum Company (NNPC) Limited has announced that it has successfully repaid 60% of the $1.03 billion loan obtained to acquire a stake in the Dangote Petroleum Refinery and Petrochemicals (DPRP).

According to NNPC's audited financial statements for the fiscal year ending December 31, 2023, the company has made a payment of $625 million so far.

NNPC initially proposed acquiring a 20% interest in the Dangote refinery for $2.76 billion back in September 2021. This acquisition was financed through a forward sale agreement of $1.036 billion with Lekki Refinery Funding Limited, which involved the provision of 35,000 barrels of crude oil per day to facilitate the settlement.

The interest rate for this loan is based on a three-month LIBOR rate plus 6.125%. As of December 31, 2023, NNPC still has $424 million outstanding on the loan. The investment was previously managed by NNPC Greenfield Limited but has since been transitioned to NNPC Downstream Investment Service (NDIS) following a restructuring.

In a surprising turn of events, Aliko Dangote, the founder of the refinery, stated on July 14 that NNPC’s stake had decreased to 7.2%, down from the initially proposed 20%.

This reduction was attributed to NNPC's failure to fulfill the payment of the remaining balance, which was due in June. On August 13, NNPC confirmed that the adjustment was also part of a strategic decision to invest in compressed natural gas (CNG).