NNPC’s 20% stake in Dangote refinery slashed to 7.2%


NNPC, which is in talks over another oil-backed loan to boost its finances, agreed three years ago to buy shares for $2.7 billion in the 650,000 barrels per day refinery.

“NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.

NNPC is grappling with growing debt owed to its petrol suppliers, while the cost of petrol subsidies has further depleted its cash reserves.

The Dangote refinery has struggled to secure enough crude supplies locally because Nigeria’s production is constrained by lack of investment, pipeline vandalism and crude theft.

That has forced the refinery to import U.S. crude to reach its full capacity next year.

Dangote said he expected the refinery and a fertiliser plant, which is in the same complex, to be listed on the Nigerian stock exchange in the first quarter of 2025.

A senior company executive, according to Reuters, said in May the refinery was aiming for a dual listing on the London and Lagos bourses.



This article was originally posted at sweetcrudereports.com

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