One-third of NNPC’s investment in Dangote refinery will be paid in supply of crude — Report
The Nigeria National Petroleum Corporation (NNPC), which is looking to pay for a 20% stake in the refinery representing $2.7 billion, will be paying one-third of the money in cash, one-third in the supply of crude and one-third from the profit the NNPC makes from the business. According to a Dangote Refinery documentary aired on Arise News.
This revelation was confirmed by Aliko Dangote himself.
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The NNPC will be taking a 20% stake in the $19 billion Dangote’s Refinery as they have the right to buy stake in any refinery processing more than 50,000 Barrels Per Day (BPD).
Dangote, addressing the criticisms that have trailed the NNPC’s interest in owning a stake in the refinery, stated that critics are wrong.
“People keep talking about the refinery. They (NNPC) didn’t buy only the refinery. They bought refinery with petrochemicals. These are the things people don’t really understand and I want to clarify it.
“The $2.7 billion, they are paying one-third of the money, one-third of the money again will actually be paid through a supply of crude with the deduction of maximum. About $2 some cents and then the one-third of it, which is another $850-$900 million, will be paid from the profit they are going to make from the business.
“So, it’s not a cash transaction where they are paying all cash. You can see if we don’t have confidence in what we are doing, we would have asked them to pay all cash.”
The presenter, Abisola Owolawi, brought up rumours regarding Aliko Dangote not being happy with the NNPC purchasing a 20% stake in the refinery stating that he is taking the risk while the NNPC gets to share in the rewards. Dangote dispel the rumor that he wasn’t satisfied with NNPC purchasing 20% stake in the refinery, stating that “They (NNPC) cannot just sit down for energy security, they cannot sit down and see this kind of massive project without them being involved in it.
“But when you look at it again, we are not only cooperating with them you know… because if we are now going to go our separate ways, it will not be good for the industry and I think it is a very very mutually beneficial relationship and we welcome it and it’s not going to take them (NNPC) much time, maybe three or four years to recoup their own investment.”
