Dangote Refinery renews shareholding, NNPC stake reduced to 7.2%

In a significant development for Nigeria’s energy sector, Aliko Dangote, CEO of Dangote Refinery, announced on Sunday that the Nigerian National Petroleum Corporation (NNPC) has seen its stake in the refinery reduced from 20% to 7.2%.

Speaking at a press conference held in Lagos, Dangote clarified that the decline in NNPC’s holdings was a result of their failure to meet financial obligations.

“NNPC no longer holds a 20% stake in the Dangote refinery,” Dangote said, noting that the company had missed a payment deadline in June. “As a result of their inability to meet their financial commitments, their stake in the refinery has been adjusted to 7.2%.”

The Dangote refinery, touted as Africa’s largest single-train refinery, has become a focal point of Nigeria’s efforts to increase its refining capacity and reduce reliance on imported petroleum products.

Initially, NNPC had secured a 20% stake in the project, signaling a strategic partnership aimed at boosting domestic energy production.

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“We initially welcomed NNPC as a major partner in this important venture,” Dangote said, recalling the early stages of the collaboration. “However, their late payments necessitated an adjustment in this ownership structure.”

Despite the ownership changes, Dangote expressed confidence in the operational readiness of the refinery. The project, which has attracted attention for its scale and potential impact on the Nigerian economy, is a major milestone in the country’s drive to achieve energy independence.

 

Dangote Refinery updates shareholding, NNPC stake reduced to 7.2% first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.