Dangote Refinery Row: Nigerian National Petroleum Company Limitesits Investment at $20 Million

A terse statement from the Nigerian National Petroleum Company Limited (NNPCL) has confirmed that it has decided not to add to its earlier investment in the 650,000 barrels per day Dangote Refinery, contrary to previous announcements.

According to Olufemi Soneye, an NNPCL spokesperson, the company made a commercial decision to cap its investment at the amount already paid, which is believed to be around $20 million. Soneye clarified that this decision has no impact on the company’s business.

The development comes after Aliko Dangote, the Chairman of Dangote Group, revealed that NNPCL’s stake in the refinery is now 7.2 percent, down from the previously announced 20 percent stake. Dangote attributed the reduction to NNPCL’s failure to pay the balance of its shares, which was due in June last month.

The news has raised questions about the discrepancies in the stake claims. Earlier, Mele Kyari, Group Chief Executive Officer of NNPCL, had announced that the company had acquired 20 percent in Dangote Refinery.

The investment cap at $20 million implies that NNPCL has no further obligations towards the refinery, despite its reduced stake. The development may have implications for the project’s future, given the company’s reduced involvement.

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