The Nigerian National Petroleum Company Limited (NNPC) has reduced its stake in the Dangote Refinery from the initially planned 20% to 7.2% to focus on investments in Compressed Natural Gas (CNG) infrastructure. This decision was disclosed by NNPC spokesperson Olufemi Soneye during an appearance on Berekete Family Radio.
Soneye clarified that the reduction in the NNPC's stake was strategic, allowing the state-owned energy firm to invest in CNG stations across Nigeria, providing a cheaper and cleaner alternative energy source for Nigerians. He noted that CNG is more affordable, with Nigerians potentially fueling their vehicles for just ₦10,000, which could last for up to two weeks.
Responding to allegations that the NNPC was working with the Nigerian Midstream and Downstream Regulatory Commission to sabotage the Dangote Refinery, Soneye dismissed the claims as baseless. He emphasized that the NNPC, which holds a 7.2% stake in the refinery, would not undermine a company in which it has invested billions of naira.
The NNPC had originally agreed to purchase a 20% stake in the refinery for $1 billion, with an option to buy the remaining 12.75% by June 2024. However, the decision was later revised, and the NNPC opted to maintain its investment at 7.2%.
Former Minister of Education, Oby Ezekwesili, has since called for an independent audit to clarify the reasons behind the NNPC's decision to cap its stake at 7.2% instead of the originally planned 20%. Ezekwesili also urged President Bola Tinubu to initiate an investigation to ensure transparency in the transaction.
The Dangote Refinery, which has been a significant project in Nigeria's energy sector, was expected to sell the remaining 12.7% stake of the NNPC this year for loan servicing, according to Fitch Ratings.
