In response to recent claims attributed to the Nigerian National Petroleum Company Limited (NNPCL), the Dangote Group has refuted assertions that a $1 billion loan backed by crude was pivotal in addressing liquidity challenges faced by the Dangote Refinery.
According to a statement by the Group Chief Branding and Communications Officer, Anthony Chiejina, the $1 billion referenced represents only 5% of the total investment in the refinery. The sale of a 20% stake in the refinery to NNPCL, valued at $2.76 billion, was based on a strategic partnership recognizing NNPCL’s position as the largest off-taker of Nigerian crude and sole gasoline supplier at the time.
The payment arrangement allowed NNPCL to initially pay $1 billion, with the balance to be recovered over five years through crude supply deductions and dividends. “If we were struggling with liquidity challenges, we wouldn’t have offered such generous payment terms,” Chiejina stated, emphasizing that the refinery was at the pre-commission stage when the agreement was signed in 2021.
However, NNPCL’s inability to supply the agreed 300,000 barrels per day of crude led to a revised agreement. With the 12-month payment deadline expiring on June 30, 2024, NNPCL’s equity share was adjusted to 7.24%.
“It is inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges,” Chiejina clarified, urging all stakeholders to present the facts accurately to avoid misleading the public.
The Dangote Group reaffirmed its commitment to its partnership with NNPCL while highlighting the need for accurate media narratives to maintain public confidence.
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