The Federal Executive Council (FEC) on Wednesday, approved the acquisition of 20% minority stakes of Dangote Refinery and Petrochemical by the Nigerian National Petroleum Corporation(NNPC) for $2.76 billion.
This follows an earlier announcement by NNPC in May, 2021, that it plans to purchase a stake in Africa’s biggest refinery, Dangote Refinery, to further help ensure an undisrupted supply of petroleum products across the country when the transaction pulls through.
This disclosure was made by the Minister of State for Petroleum Resources, Timipre Sylva, while briefing State House correspondents after the virtual FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, according to NAN.
What the Minister of State for Petroleum Resources is saying
Sylva said that the federal executive council also approved contracts for the rehabilitation of Warri and Kaduna refineries.
He said, “The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of 1.5 billion dollars– 897. 67 million dollars for Warri Refinery and 586. 9 million dollars for Kaduna Refinery.
“The Executive Council also approved the acquisition of 20 per cent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of 2.76 billion dollars.”
In case you missed it
- It can be recalled that the NNPC Group Managing Director, Mele Kyari, in his explanation said that the decision was driven by the profit potential of the refinery business and the need to have a say in a business of this magnitude, which borders on energy security for Nigeria and Africa, with huge implications for fiscal security of the country
- 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.