Nigerian National Petroleum Company (NNPC) Limited has clarified its decision to reduce its equity stake in the Dangote Petroleum Refinery, stating that the move was made months ago as part of its periodic investment portfolio assessment.
Gatekeepers News reports that this comes after Aliko Dangote, Africa’s richest person, revealed that NNPC’s stake in the refinery had decreased from 20% to 7.2% due to non-payment of the outstanding balance.
According to NNPC’s Chief Corporate Communications Officer, Femi Soneye, the company had informed Dangote Refinery of its decision to cap its equity participation at the paid-up amount several months prior.
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals. The decision to cap its equity participation in the Dangote Refinery was made several months ago.”
The initial 20% stake was acquired in September 2021 for $2.76 billion, with a balance of $1.76 billion payable upon completion of the refinery project or a mutually agreed date.
The refinery commenced production on January 12, marking a significant milestone in Nigeria’s energy landscape.
