Dangote Refinery
By OLA MODUPE, Lagos-
The Dangote Refinery has come out to clarify the details surrounding the Nigerian National Petroleum Company Limited’s (NNPCL) $1 billion investment in the refinery.
The Group Chief Branding and Communications Officer at Dangote Group, Anthony Chiejina, said in a statement on Wednesday that the NNPCL’s stance was a distortion of the facts.
“We have received numerous inquiries from the media and other concerned stakeholders seeking clarification on a recent report attributed to the Nigerian National Petroleum Company Limited (NNPCL) that their decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote refinery during liquidity challenges.
“We would like to clarify that this is a misrepresentation of the situation as $1bn is just about 5% of the investment that went into building the Dangote Refinery”, Chiejina said.
She saidNNPCL’s investment was not a bailout to support the refinery during liquidity challenges, as has been reported. Instead, it was a strategic partnership between the two companies, with NNPCL acquiring a 20% stake in the refinery valued at $2.76 billion.
Chiejina explained that NNPCL paid $1 billion upfront, with the balance to be recovered over five years through deductions on crude oil supplies and dividends. This payment structure, he noted, would not have been possible if the refinery was indeed facing liquidity challenges.
The partnership, Chiejina emphasized, was based on NNPCL’s strategic position in the industry as the largest off-taker of Nigerian crude and sole supplier of gasoline into Nigeria at the time.
However, NNPCL failed to meet its obligations, including supplying the agreed 300,000 barrels of crude oil per day. As a result, the company’s equity share was revised down to 7.24%.
Chiejina reiterated that NNPCL remains a valued partner in progress, and it is essential for all stakeholders to adhere to the facts and present the narrative in the correct context.
