By Ayomide Otitoju
LAGOS, July 14 (Reuters) – Aliko Dangote, CEO of Dangote Refinery, has announced that the Nigerian National Petroleum Corporation (NNPC) now holds only a 7.2% stake in the refinery, down from the initial 20%. Speaking to journalists in Lagos State on Sunday, Dangote explained that the reduction resulted from NNPC’s failure to meet its financial obligations by the June deadline.
“NNPC no longer owns a 20% stake in the Dangote refinery. They were meant to pay their balance in June but have yet to fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote stated.
In related developments, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, has accused International Oil Companies (IOCs) in Nigeria of attempting to undermine the new Dangote Oil Refinery and Petrochemicals. Addressing journalists at a one-day training programme organized by the Dangote Group on Friday, Edwin criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority for indiscriminately granting licenses to marketers to import substandard refined products.
Edwin highlighted that while the Nigerian Upstream Petroleum Regulatory Commission is striving to allocate crude oil for the 650,000-barrel-per-day refinery, IOCs are obstructing efforts to purchase local crude by inflating prices above the market rate. This, he said, forces the refinery to import crude from distant countries like the United States, incurring high transportation costs.
Despite these challenges, the Federal Government and crude oil producers in Nigeria have shown a commitment to ensuring a sustainable supply of crude oil to local refineries under a market-determined pricing system. Both parties aim to balance optimal business operations for crude oil producers and the continuous supply of feedstock for refineries.
The Nigeria Upstream Petroleum Regulatory Commission has directed oil refiners in the country to submit monthly price quotes on crude supply, reinforcing the commitment to market-driven pricing.
According to a Bloomberg report on Friday, the Dangote refinery is set to import a cargo of Brazilian crude, adding to the significant volume of overseas crude feedstock the Nigerian firm is already importing.
