Nigeria’s Nationwide Petroleum Company (NNPC) has had its stake within the Dangote Refinery decreased on account of non-payment, based on current statements from Aliko Dangote, the refinery’s proprietor, and NNPC officers.

Initially, NNPC owned 20% of the refinery however now holds solely 7.2%. This discount occurred as a result of NNPC didn’t full its fee for the shares.

Stake Discount 

NNPC deliberate to purchase a 20% share within the Dangote Refinery for $2.7 billion. This refinery is without doubt one of the largest in Africa, able to processing 650,000 barrels per day.

Nonetheless, NNPC was solely in a position to fulfil the fee for a 7.2% stake. Aliko Dangote, the refinery’s proprietor, acknowledged that this discount occurred as a result of NNPC didn’t meet its monetary commitments for the bigger stake.

Olufemi Soneye, an NNPC spokesperson, confirmed that their shareholding is now capped at 7.2%, which is the portion they’ve totally paid for.

Operational Challenges

One of many foremost points is securing sufficient crude oil to function at full capability. As a consequence of issues like underinvestment, pipeline vandalism, and theft, the refinery has needed to import crude oil from the US.

Regardless of these challenges, there are plans to extend the refinery’s worth and effectivity. Dangote plans to listing the refinery and an related fertilizer plant on the Nigerian Inventory Alternate.

They’re additionally contemplating a twin itemizing in London and Lagos by early 2025, aiming to draw extra traders and stabilise funds.