Dangote debunks NNPCL loan claims, underscores refinery investment transparency and strategic partnership agreements.
Nigeria, Dangote Group has strongly refuted claims suggesting that the Nigerian National Petroleum Company Limited (NNPCL)’s $1 billion loan was pivotal in addressing liquidity challenges at the Dangote Refinery.
The Group clarified this in a press release dated December 18th, 2024, following widespread media reports that misrepresented their partnership with NNPCL.
Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, stated unequivocally in press release that the $1 billion in question accounts for only 5% of the total investment in the refinery project.
“Our decision to partner with NNPCL was based on their strategic industry role as the largest offtaker of Nigerian crude and sole gasoline supplier at the time,” Chiejina explained.
NNPCL’s $1 billion agreed as an upfront payment.
He further outlined that NNPCL’s investment came through the acquisition of a 20% stake, valued at $2.76 billion, of which $1 billion was agreed as upfront payment. The remaining balance was to be recovered over five years through crude supply deductions and dividends.
Contrary to claims of liquidity struggles, Chiejina emphasized, “If liquidity were an issue, this agreement would have been cash-based, not credit-driven.”
The Group also noted NNPCL’s inability to meet its commitment of supplying 300,000 barrels per day due to prior obligations to other financiers. Following an extended 12-month deadline that expired in June 2024, NNPCL’s equity share was revised downward to 7.24%. “It is inaccurate to suggest that NNPCL’s loan addressed any liquidity issues,” Chiejina affirmed.
Dangote Group reiterated continued partnership with NNPCL
The Dangote Refinery, valued at over $19 billion, is Africa’s largest oil refining facility and a critical component of Nigeria’s energy sector. Its operations are central to reducing fuel imports, a longstanding economic burden.
Meanwhile, Nigeria’s economy faces enormous challenges, including a fluctuating naira, high inflation, and soaring debt levels. Amid these struggles, the refinery stands as a beacon of industrial progress and self-sufficiency.
Dangote Group reiterated the importance of accurate reporting, emphasizing its continued partnership with NNPCL to ensure mutual economic benefits and public transparency.
