Buzzapp Master 
Nigeria’s National Petroleum Corporation (NNPC) has had its stake in the Dangote Refinery reduced due to non-payment, according to recent statements from Aliko Dangote, the refinery’s owner, and NNPC officials.
Originally, NNPC owned 20% of the refinery but now holds only 7.2%. This reduction happened because NNPC did not complete its payment for the shares.
Stake Reduction
NNPC planned to buy a 20% share in the Dangote Refinery for $2.7 billion. This refinery is one of the largest in Africa, capable of processing 650,000 barrels per day.
However, NNPC was only able to fulfil the payment for a 7.2% stake. Aliko Dangote, the refinery’s owner, stated that this reduction occurred because NNPC didn’t meet its financial commitments for the larger stake.
Olufemi Soneye, an NNPC spokesperson, confirmed that their shareholding is now capped at 7.2%, which is the portion they have fully paid for.
Operational Challenges
One of the main issues is securing enough crude oil to operate at full capacity. Due to problems like underinvestment, pipeline vandalism, and theft, the refinery has had to import crude oil from the United States.
Despite these challenges, there are plans to increase the refinery’s value and efficiency. Dangote plans to list the refinery and an associated fertilizer plant on the Nigerian Stock Exchange.
They are also considering a dual listing in London and Lagos by early 2025, aiming to attract more investors and stabilise finances.
