Dangote Refinery: Why We Reduce Stake – NNPC

The Nigerian National Petroleum Company (NNPC) Limited has disclosed the reason for reducing its stake in Dangote refinery.

NNPCL said its stake in Dangote Petroleum Refinery was reduced to 7.2 per cent to invest in compressed natural gas (CNG).

NNPC’s spokesperson, Femi Soneye, made this known during a Brekete Family programme on Monday, according to The Cable.

It would be recalled that NNPC in September 2021, acquired a 20 percent interest in Dangote refinery for $2.76 billion.

READ ALSO

●Friends Kill 14-Year-Old For Money Ritual

●Vigilante Machetes Two Osun Poly Students On First Night-Duty

 

However, on July 14, Aliko Dangote, Africa’s richest person, said the national oil company now owns a 7.2 per cent stake in the refinery.

Also, Soneye said the company does not have any issues with Dangote refinery, adding that NNPC was not collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sabotage the refiner.

“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 said if Nigerians use CNG, it will be cost-effective for them.

“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.

The spokesperson said the Petroleum Industry Act (PIA) does not give NNPC the power to stop the Dangote refinery.

“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,” Soneye said.

“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?”