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NNPC Cuts Stake in Dangote Refinery from 20% to 7.2%, Says Spokesperson
The Nigerian National Petroleum Company (NNPC) Limited has explained the rationale behind its reduction of stake in the Dangote Refinery from 20% to 7.2%.
News reports indicate that in September 2021, the Nigerian National Petroleum Company (NNPC) acquired a 20% stake in the Dangote Refinery for $2.76 billion. However, on July 14, 2024, Aliko Dangote, the refinery’s owner and Africa’s wealthiest individual, revealed at a press conference that NNPCL no longer holds the 20% interest in the refinery.
Commenting on the development, NNPC spokesperson Femi Soneye stated that the national oil company’s decision to reduce its stake in the Dangote Refinery was driven by a strategic shift towards investing in compressed natural gas (CNG).
Femi Soneye added that the NNPC has no issue with Dangote refinery and that the NNPC was not partnering with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sabotage the refinery.
“The reason for reducing our stake in Dangote refinery is because we wanted to invest in CNG. We observed that CNG is very cheap and all over the world, people are investing in clean and cheaper alternative energy,” Soneye said.
He also called on Nigerians to switch to the use of CNG as it is a cheaper alternative.
“That is why the NNPC is building different CNG stations everywhere. We understand that with N10,000, Nigerians can fill their cars and use it for two weeks. We realized that gas is cheaper in Nigeria, why don’t we invest in it since this is what people are doing all over the world?” Soneye said.
“We want all Nigerians to know that the NNPC does not have any issue with the Dangote Refinery. We are part of the owners of the Dangote refinery and we don’t want it to collapse.
“We invested billions of naira into the Dangote refinery. As of today, we have a 7.2 per cent stake in the refinery. So, why would we want to sabotage such a company?” he added.
On the conflict between Dangote refinery and the NMDPRA, Soneye said the NMDPRA’s Chief Executive Officer (CEO), Farouk Ahmed, is only speaking in his capacity as the regulator of the industry and not due to any personal issue with the refinery or its owner.
“Mr Farouk Ahmed is the head of Nigeria’s mainstream and downstream petroleum regulatory authorities. They have power over all refineries. Anything that has to do with the distribution of petrol, they are in charge. In fact, they are superior to the NNPC in that sector. We don’t have anything to do with them,” he said.