The Dangote Refinery has issued a statement to clarify the circumstances surrounding the Nigerian National Petroleum Company Limited’s (NNPCL) recent $1 billion investment in the refinery.
Anthony Chiejina, the Group Chief Branding and Communications Officer at Dangote Group, stated on Wednesday that claims made by NNPCL regarding the nature of this investment were misleading.
“We have received numerous inquiries from media outlets and stakeholders seeking clarification on a report attributed to NNPCL, which suggested that their decision to secure a $1 billion loan against crude oil was critical in alleviating liquidity issues faced by the Dangote Refinery,” Chiejina explained.
He emphasized that this portrayal is inaccurate, noting that the $1 billion represents merely 5% of the total investment in the Dangote Refinery.
Chiejina further clarified that the NNPCL’s investment should not be viewed as a bailout for liquidity challenges, as reported. Instead, it constitutes a strategic partnership, with NNPCL acquiring a 20% equity stake in the refinery, valued at $2.76 billion.
According to Chiejina, NNPCL made an initial payment of $1 billion, with the remaining amount to be recouped over a period of five years through deductions from crude oil supplies and dividends. He asserted that such a payment arrangement would be unfeasible if the refinery were genuinely experiencing liquidity difficulties.
He stressed that this partnership is rooted in NNPCL’s strategic role as the largest off-taker of Nigerian crude and the exclusive supplier of gasoline in Nigeria at that time.
However, due to NNPCL’s failure to fulfill its commitment to supply the agreed 300,000 barrels of crude oil per day, the company’s equity stake has been adjusted down to 7.24%.
Chiejina reaffirmed that NNPCL is a valued partner in progress and urged all stakeholders to remain grounded in factual representation and to contextualize the narrative accurately.
