Why NNPC Cut Its Stake In Dangote Refinery To 7.2% From 20% – Spokesperson

Why NNPC Cut Its Stake In Dangote Refinery To 7.2% From 20% – Spokesperson

The Nigerian National Petroleum Company (NNPC) Limited has revealed the real reason behind its decision to reduce its stake in the Dangote refinery from 20% to 7.2%.

Ireporteronline  recalls the NNPC had, in September 2021, acquired a 20 percent interest in Dangote refinery for $2.76 billion. However, on July 14, 2024, the owner of the refinery and Africa’s richest man, Aliko Dangote, disclosed during a press conference that the NNPCL no longer owns a 20% stake in Dangote Refinery.

Speaking about the development, the spokesperson of the NNPC, Femi Soneye, said the decision of the national oil company to reduce its stake in Dangote Refinery is to invest in compressed natural gas (CNG).

Ireporteronline reports he made the disclosure on Monday during a Brekete Family programme.

Soneye added that the NNPCL has no issue with Dangote refinery and that the NNPC was not collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sabotage the refinery.

“The reason for reducing our stake in Dangote refinery is because we wanted to invest in CNG. We observed that CNG is very cheap and all over the world, people are investing in clean and cheaper alternative energy,” Soneye said.

He also called on Nigerians to switch to the use of CNG as it is a cheaper alternative.

“That is why the NNPC is building different CNG stations everywhere. We understand that with N10,000, Nigerians can fill their cars and use it for two weeks. We realised that gas is cheaper in Nigeria, why don’t we invest in it since this is what people are doing all over the world?” Soneye said.

“We want all Nigerians to know that the NNPC does not have any issue with the Dangote Refinery. We are part of the owners of the Dangote refinery and we don’t want it to collapse.

“We invested billions of naira into the Dangote refinery. As of today, we have a 7.2 per cent stake in the refinery. So, why would we want to sabotage such a company?” he added.

On the dispute between Dangote refinery and the NMDPRA, Soneye said the NMDPRA’s Chief Executive Officer (CEO), Farouk Ahmed, is only speaking in his capacity as the regulator of the industry and not due to any personal issue with the refinery or its owner.

“Mr Farouk Ahmed is the head of Nigeria’s mainstream and downstream petroleum regulatory authorities. They have power over all refineries. Anything that has to do with the distribution of petrol, they are in charge. In fact, they are superior to the NNPC in that sector. We don’t have anything to do with them,” he said.