Alh. Aliko Dangote, Chairman of Dangote Group, has announced that the Nigerian National Petroleum Company (NNPC) Limited no longer holds a 20 percent stake in the Dangote Petroleum Refinery, a claim that has prompted a response from the state oil firm.

 Dangote disclosed this during a press briefing at the refinery on Sunday, while conducting media executives on the Dangote Refinery Media Tour.

He stated that the NNPCL’s failure to pay the balance of its share, which was due in June, has reduced the national oil company’s stake in the refinery to 7.2 percent.

He said, “NNPCL no longer owns a 20 percent stake in the Dangote refinery. It should have settled the balance in June 2024 but has yet to fulfill its obligations.

“Now, they only own a 7.2% stake in the refinery,” Dangote explained.

Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd, in a statement reacting to the claim by Dangote, said, “NNPCL made a commercial decision to cap its investment at the amount already paid.”

“Several months ago, we made a commercial decision to cap our investment at the amount already paid. This decision was taken by NNPC Ltd and has no impact on our business.

Advisors Reports gathered gathered that in September 2021, the former President Mohammadu Buhari granted the the NNPCL to acquire a 20 percent interest in the Dangote refinery for $2.76 billion.

The deal included an agreement for the national oil company to supply 300,000 barrels of crude per day to the refinery.

The NNPCL at that time approached the Afreximbank for a $3.3 billion loan to partly to cater for that purpose with plans to repay with crude oil.

Meanwhile, the national oil company’s audited financial statements for 2022, detailing its transaction in Greenfield investments, showed that the NNPCL got $1.036 billion from Afreximbank to acquire the 20% stake in the Dangote Refinery.

Financial Details:

Loan Amount: NNPC borrowed $1.036 billion to acquire the 20% stake in the Dangote Refinery.

Purchase Price: The 20% stake was purchased for $2.76 billion.
Balance: The difference between the loan amount and the purchase price is $1.036 billion minus $2.76 billion, resulting in a negative balance of $1.724 billion.

Financial Implications:

The negative balance of $1.724 billion indicates that NNPC has a debt obligation that remains outstanding as of June 2024.

This debt has been a point of contention, as the NNPCL had insisted that the balance ($1.76 billion) of the cost of equity investments made in the Dangote refinery would be paid upon completion of the refinery project or any other agreed date.

Some concerned Nigerians and industry experts have called on the Federal Government and the National Assembly to investigate the matter to ensure transparency and accountability in the management of public funds.