In a surprising twist to the Dangote Refinery saga, disclosures have been made that the supposed 20percent equity investment by NNPCL in the Refinery is actually 7.5percent.
This disclosure was made by Aliko Dangote himself at a media briefing earlier today, Sunday 14th July. According to the business tycoon, the NNPCL indeed made a commitment for 20 percent but the payment made so far was for only 7.5 percent; indicating the corporation shall lose the remaining equity due to their failure in paying the balance of their share, which was due in June 2024.
According to Aliko Dangote, the 20 percent interest in the $20bn Dangote refinery is valued at $2.76 billion.
“NNPC no longer owns a 20 percent stake in the Dangote refinery. They were meant to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.5% stake in the refinery,” Dangote said.
In a quick response however, the NNPCL have refuted claims of its not making the payment on time, calling it a commercial decision.
A statement by Femi Soneye, Chief Corporate Communications Officer, NNPC, said: “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.”
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals,” said a spokesman for the company.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago”.
This disclosure might be seen as another knot in the dangote refinery saga.
Dangote had expressed frustration about getting Nigerian crude for his facility. A Bloomberg report had it that the Lagos-based refinery bought about 24 million barrels of crude from the United States.
The NNPC had reportedly pledged Nigerian crude in a $3.3 billion oil-for-loan Afreximbank deal, hampering its local crude supply. Nigeria’s crude oil production rose to 1.276 million barrels per day (bpd) in June, way lesser than the 1.7 million bpd benchmark in the 2024 Budget.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had in May said the decision by the Lagos-based refinery to import US crude could be based on its business model.
But Dangote disclosed on Sunday that his refinery would roll out petrol from August 2024, having resolved its crude oil supply issues with the NNPC and the Federal Government.
Meanwhile, the President of Dangote Group, Aliko Dangote, has announced that the group intends to list its multibillion-dollar companies – Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited, on the Nigerian Exchange Group in the first quarter of 2025.
He said the move will allow Nigerians to participate in the ownership of these companies, for the benefit of all.
Dangote said that over the past four decades, the operations of Dangote Group have evolved significantly from a commodity trading company to a diversified conglomerate. He emphasised that this transformation was driven by the overarching goal of achieving self-sufficiency in key sectors and bolstering Nigeria’s economy.
He noted that the group, which began as a trading company in 1978, has expanded into a diversified conglomerate with investments spanning cement, agriculture, fertiliser, petrochemicals, oil & gas, auto assembly, infrastructure, and other sectors.
He said he is driven by the idea that Africa’s future prosperity hinges on its ability to harness its resources and capabilities. Dangote stressed that the continent inadvertently imports poverty and exports jobs by exporting raw materials and importing finished goods.
“Our joy lies in fostering self-sufficiency for Africa and promoting a circular economy where mutual growth is achievable,” Dangote affirmed. “Our export strategy aims to alleviate foreign exchange pressures on the economy. We hope to list the refinery and fertiliser on the NGX by the first quarter of 2025”
Regarding operations, Dangote confirmed that the refinery will commence petrol processing in July and underscored government assurances on compliance with the Domestic Crude Oil Supply Obligations under the Petroleum Industry Act. He expressed confidence in meeting Nigeria’s domestic demand for petrol, diesel, kerosene, and aviation jet fuel, with surplus production earmarked for export.
Dangote, who led the media executives on a tour of both facilities, noted that products are of high quality and meet international standards.
The Vice President, of Oil and Gas, Dangote Industries Limited, Devakumar Edwin, reiterated the commitment of the company to enhancing local capacity in critical sectors of the economy.
He said Dangote Industries Limited has empowered young Nigerians to assume key roles across its operations, with many even becoming expatriates in other nations.
While expressing appreciation to the media executives, the Group Executive Director of Commercial Operations at Dangote Industries Limited, Fatima Aliko Dangote, expressed the company’s commitment to making a positive impact on the economy. She commended Aliko Dangote’s unwavering determination in advancing the development of the continent.
“He (Dangote) is determined to ensure the success of Nigeria and Africa as a nation and a continent. Our focus is not on profit but on problem-solving and achieving self-sufficiency across all sectors in Africa. By meeting global standards, we have positioned ourselves to export our products to every continent in the world,” she said.
She further stressed Dangote’s strategy to leverage Africa’s abundant crude oil resources for local refining, aiming to stimulate industrial development, create jobs, and drive economic prosperity.
The 650,000 barrels per day (BPD) Dangote Refinery is Africa’s largest oil refinery and the world’s largest single-train facility while the Dangote Fertiliser Limited’s plant is Africa’s largest Granulated Urea Fertiliser complex. Currently, Dangote Cement is the most capitalised company in Nigeria.
