FG approves $2.7bn for NNPC 20% stake in Dangote refinery

Uthman Salami

The federal government has given a nod to $2.76 billion fund for the acquisition of minority stake in Dangote Refinery at 20 per cent through the Nigerian National Petroleum Corporation (NNPC).

The Minister of State for Petroleum Resources, made the revelation after the end of the weekly Federal Executives Committee (FEC) meeting in Abuja during the week.

The Dangote Refinery, expected to produce 650,000bpd, is an integrated refinery project still under construction in the Lekki Free Zone, Lagos.

The refinery is projected to be Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion.

It was earlier reported by Nigerian NewsDirecst that there were mixed reactions from key stakeholders in the oil and gas industry over the Minister’s announcement on the approval of the sum of $1.48billion for the rehabilitation of both Warri and Kaduna refineries.

He said, “The Executive Council also approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion.”

The Managing Director, Nigerian Natiomal Petroleum Corporation (NNPC), Mele Kyari had confirmed that the federal government would acquire a 20 percent equity stake in the Dangote Refinery.

He said NNPC would borrow to acquire the equity stake in order to yield results and dividends for Nigeria instead of using funds from the federation.

The corporation is said to be discussing with African Export-Import Bank (Afreximbank) for a loan to acquire the stake.

Last month, Sylva said the federal government decided to acquire equity in private refineries to prevent fuel scarcity.

He said, “Acquiring stakes in Dangote Refinery and other private refineries was a strategic decision by the government to get involved in the running of these important assets and not allow them completely in the hands of private individuals.”