The shareholding of Nigerian state-owned oil firm NNPC in the Dangote refinery has been reduced to 7.2% from 20% due to non-payment of the balance of funding owed, Aliko Dangote, the refinery’s owner, told the BusinessDay newspaper.
NNPC had agreed three years ago to buy shares worth $2.7 billion in the 650,000 barrels-per-day refinery, as it sought to bolster its finances through another oil-backed loan. However, during a briefing at the refinery on the outskirts of Lagos on Sunday, Dangote reported that NNPC failed to fulfill its financial commitments, BusinessDay reported 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 fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote was quoted as saying.
NNPC was not immediately available for comment.
The Dangote refinery has faced challenges in securing sufficient local crude supplies due to Nigeria’s production issues, including lack of investment, pipeline vandalism, and crude theft. This has necessitated the import of U.S. crude to achieve its full capacity next year.
Dangote also mentioned that he expects the refinery and a fertilizer plant within the same complex to be listed on the Nigerian stock exchange in the first quarter of 2025. Additionally, a senior company executive indicated in May that the refinery aims for a dual listing on both the London and Lagos bourses.