The Nigerian National Petroleum Corporation (NNPC) has said that it plans to acquire a 20% minority equity stake in Africa’s biggest oil refining facility, Dangote Refinery, Lagos.
This is to help further ensure an undisrupted supply of petroleum products across the country when the transaction pulls through.
This disclosure was made by NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, while speaking at the end of a 2-day Nigeria Oil and Gas Opportunity Fair (NOGOF), 2021, tagged: “Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigerian Oil and Gas Industry.”
According to Thisday, Yakubu said discussions were already ongoing with the Dangote Group for the acquisition of the stake.
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What the NNPC Chief Operating Officer, Refining and Petrochemicals, is saying
Yakubu, at the virtual event, stated that one of its divisions, the Greenfield Refining Projects Division (GRPD) was handling the negotiations with Dangote Refinery.
He said: “We have what we call the Greenfield refinery and the Greenfield Refining Projects Division (GRPD) of the NNPC. What we do, our strategy is to collaborate and seek strategic partnerships with private investors.
At the moment, we have Dangote Refinery, which is the 650,000 barrels per day capacity, plus a mini 80,000 tonnes per annum petrochemical plant.
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What are we doing there? I can tell you today that we are seeking to have a 20 per cent minority stake in Dangote Refinery as part of our collaboration and you know that there’s a huge quantity of crude for that refinery.
That’s 650,000 barrels, going into a single crude distillation unit (CDU). When that comes on board, it will also wet the nation for us.”
Yakubu also noted that the state oil giant is collaborating with African Refinery in Port Harcourt, a co-location facility, the CNCEC Chinese group, which is interested in building two refineries in Nigeria, the Waltersmith modular plant and Azikel refineries on condensate production.
READ: Dangote Sugar Refinery denies collusion with Flour Mills to create sugar scarcity
Yakubu stated that despite the global push for renewables, Nigeria has a local, domestic and regional market for hydrocarbons adding that Africa will continue to rely on fossil fuels at least in the next 20 years.
He said the country would not just fold its arms and do nothing with its hydrocarbons just because the International Energy Agency (IEA) has predicted a net-zero emissions scenario by 2050.
He said, “Today when you are bringing products into Nigeria, they disappear to neighbouring countries. There’s nowhere in countries around Nigeria that they sell fuel for less than N400 per litre. So, there’s a market.’’
READ: NNPC and other state oil companies risk wasting $400 billion on Oil and Gas investments
What to know about the Dangote Refinery
Dangote refinery is a 650,000 barrels per day (BPD) integrated refinery and petrochemical project under construction in the Lekki Free Zone in Lagos, Nigeria. It is owned by the Dangote Group and is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion.
The integrated refinery and petrochemical project which will meet 100% of Nigeria’s refined petroleum product requirement and even have a surplus for export when completed is expected to be completed in 2021 after some delays and will generate 9,500 direct and 25,000 indirect jobs.
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It is designed to produce up to 50 million litres of petrol and 15 million litres of diesel a day, roughly 10.4 million tonnes of the product, 4.6 million tonnes of diesel, and 4 million tonnes of jet fuel per year, in addition to having a fertiliser plant, which will utilise the refinery by-products as raw materials.
This is good. If a single man is doing all these… What is the Federal Government doing ? To push the country to right direction ?
Why should a regulator be participating in the industry? What’s the guarantee Dangote won’t be granted special favours now that the government has a stake?
NNPC is not a regulator, is not like DPR.
Beautiful hope for my country Nigeria.
God bless dangote , what the Nigerian government can not do for the well being of its citizens, a single individual with a good heart is doing for us in Nigeria. May God reward him more. IJN Amen.
If ONLY u know just a little of what’s at stake for a corrupt system as ours buying into such private lifewire Enterprise as Dangote Refineries,Lagos.After having deliberately sucked our national refineries dry & grossly irredeemable,TAM-unfit& eventually turned self-made Liabilities courtesy of the likes of Dieziane and her local&foreign cohurts from within NNPC&abroad with complicity of the informed powers@ Aso Rock.Look below the nose,u’ll perceive the stench of the game,”If it breaks,let the equity of the juicy parts fall into our hands”.Evil Foresight.
Dangote has done very very well. He has done all. He has made Africans proud. A private company selling shares to government. Instead of government selling shares to private investors. We are encouraging Ghanaian business owners to help TOR stand on its feet. A strategic investor for that matter for Public Private partnership. Thank you.
Dangote will be better off to get a private sector as minority partners, not NNPC. NNPC will frustrate you. The bureaucracy and corruption is will not be compatible with you. They will hardly pay their equity and will continuously twist their hands and who gets what contract.
Shame on NNPC. Big shame. It took one man less than 3 yrs to build a refinery from scratch to finish and the best of NNPC is to buy stakes in a privately owned entity. The NNPC leadership need to have a rethink
Good from the Dangote group, but can the federal government also ensure that there are more players in the Cement production stream because we seem to have a monopoly or perhaps a new Dual-poly in Dangote and BUA. In fact leave BUA out of this, it’s been Dangote cement for the longest time
This is unacceptable.Dangote should not get NNPC involved,else the corruption that killed other refineries will do d same to his.Why on earth should a private company allow a govt entity into its business,only in Nigeria ,d world,s most corrupt country where nothing works?
You say this because you still believe that Dangote is Aliko’s business. They are in cahoots . After all who runs nnpc? Is it not the same gang that plan to now hand over the overall production of the three dead refineries to dangote, a seemingly “private” company?
These people think we’re fools because those who are supposed to oppose these excesses from the senate, have either been been cowed or are complicit. Our mumu is still downloading
NNPC HAVE NO BUSINESS ACUMEN RUNNING OUR REFINERIES.. INFACT IT NEEDS TO BE PRIVITISE BECAUSE IT IS OF NO BENEFIT TO THE NATION SINCE IT IS UNABLE TO RUN THE REFINERIES.
If 50 million litres would be produced per day and it would be sufficient for daily consumption in Nigeria even surplus for export, it means the current consumption of between 50 and 60 million litres being bandits as daily consumption in Nigeria is a lie.
I can say Dangote Refinery is the only good news coming out of Nigeria…!
I smell a rat. Why this move: is it Dangote that’s soliciting for investors or NNPC soliciting to be part or a way to assist Dangote with needed forex?
Hmmmmm!
It is very unfortunate that Nigerians once again will be at Mercy of Dangote. This man is taking the monopoly of every market that affects the masses. Cement price is at his dictates and soonest petrol will also be at his Mercy.
Something very fishy is in the offing here. The opaqueness of our dealings in the oil & gas sector is sickening. Governments all over the world are doing everything to disentangle themselves from businesses and Nigeria is making effort to buy into a private business albeit as a minority shareholder. Why haven’t they bought into the millions of private businesses all over Nigeria. We have private investors that can take up this 20%. Why NNPC – a company that has failed woefully to the extent they cannot refine nor manage refineries.
Why should NNPC acquire 20% equity in the Dangote refinery. This percentage equity holdings be given to the general public.
Can smell a rat here in this deal. Need more details.
I love my brother Dangote for his achievements especially his investments in Nigeria. However, I’m of a very sound opinion that we are not being told the truth about Federal Government investment in Dangote Refinery. A dirty game is being played there. I’m not a prophet of doom; no matter how long, the whole truth we come out.
For sure, if this very administration fail to break the Dangote monopoly on Cement and now again petroleum refinery, someone is coming that will put an end to it.
How was the ownerships of West African Portland Cement, Ashaka Cement and others, Benue Cement and others become Dangote?
I don’t have any grudge or animosity against the gist of Nigeria and Africa but felt things should done properly.
Dangote refinery is a private investment, Government has no reason for meddling. NNPC has failed woefully, in managing it’s four refineries how can they be useful in a more complex situation?
Unless they want kill Dangote refinery, NNPC should never be allowed in to it. In fact all NNPC refineries should be privatised forthwith. Government must also stop the current SUBSIDIES SCAM to save our economy.
Something is fishy in all these deals with Dangote. Pls pardon me if I sound parochial in my thinking here. Why is it only Dangote that is handling every important project in Nigeria.? When President Obasanjo was there , because of his third term agenda, he went up North to announce he was giving Dangote a mouth-watering loan to secure votes up North . Dangote is every where in Nigeria which means he indirectly controls the political power of this country. If wants the North or South to rule for 50 yrs he has the power and the financial capacity to do it. What I am saying here is that the North will continue to rule as long as Dangote is alive and bloody rich..
I, in 1000% totally agree with you brother! But it’s a pity no one can alter any agreement ongoing under this heroic Nigeria regime. Of which if I should say, the best thing that could ever happen to the state of Nigeria is absolution of the entity so that good leaders could emerge somewhere and run better planned countries.
As far as I am concerned, this is another “Dangote Cement” in the making. Why should one man be granted monopoly of the major minerals in a whole country?
They talk about job provision from it, without being a pessimist, I honestly see another leech on the people’s common wealth here.
Just my take
Dangote will use our money to run his private refinery. Mark my words, he will value his business 300% more than it cost him to set it up and so a 20% stake will indicate profit from 1st year without refining any crude.
Please How can one buy’s shares in dangote refinery. Thanks