NNPCL: Why we limited our investment in Dangote Refinery to 7.5%

By Ayorinde Oluokun/Abuja

The Nigerian National Petroleum Company Limited (NNPCL) has explained why it limited its equity in the over $20 billion Dangote Refinery to 7.5 per cent instead of the 20 per cent widely speculated.

The Chairman of Dangote Group, Aliko Dangote told journalists on Sunda that NNPCL no longer owns a 20 per cent stake in theRefinery.

Dangote said this was because NNPCL failed to pay the balance of their share, which was due in June.

“NNPC no longer owns a 20 per cent stake in the Dangote refinery. They were meant to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.

However, in a statement by its Chief Corporate Communications Officer, Femi Soneye, on Sunday, NNPCL said its decision to reduce its investment in the refinery was well thought out.

The company added that it informed Dangote of its decision to cap its investment in the refinery many months ago

NNPCL 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,

Meanwhile, Dangote has described the completion of the refinery as another milestone for Dangote Industries Ltd.

“It is the largest single train refinery in the world with 650,000 barrels per day refining capacity,

“It marks the attainment of self-sufficiency in domestic refining of petroleum products and provides excess capacity in refined products which will go for the export market,’’ the industrialist said.

He noted that Dangote Industries Ltd. wanted to make sure that apart from domestic sales of its products, it would export the excess.

He mentioned that for three consecutive times, the refinery had been able to bring the price of diesel below N1,100 per litre.

The industrialist noted that it was projected that the exportation of cement alone would fetch the conglomerate 325 million dollars annually.

He said that plans were also underway to add nine million tonnes of capacity to the cement industry by Dangote Cement Plc.

He pointed out that the conglomerate had the only cement company in Africa using robots.

Dangote advised Nigerians not just to acquire and store wealth but to invest in the country to encourage foreign investors to do the same.

He, however, advised that to get the economy on a more sound footing, Nigerian businessmen should not be import-dependent.

According to him, import dependency will impoverish the nation and turn the nation into a dumping ground.

“It is better to manufacture and grow the economy. If we allow imports so much, we may not be able to compete with other nations,’’ Dangote said.