The Dangote Refinery plans to divest a 12.7% stake in 2024 to manage its loan obligations, according to a report by Fitch Ratings. This move comes as the Nigerian National Petroleum Company Limited (NNPCL) has opted not to exercise its option to acquire an additional 12.75% stake by June 2024, potentially impacting the refinery’s ability to service its significant syndicated loan due in August 2024.
In 2021, the NNPC acquired a 7.25% stake in the refinery for $1 billion, with a further option to buy an additional 12.75% by mid-2024. However, the national oil company has since withdrawn from this commitment. Fitch Ratings highlighted concerns over whether the timely divestment and loan repayment can be managed effectively.
Dangote Group President Alhaji Aliko Dangote clarified that the NNPC currently holds only a 7.2% stake in the refinery, not the 20% often believed. Dangote attributed this to the NNPC’s failure to fulfill the payment for the additional stake by the extended deadline.
The NNPC confirmed its decision to cap its investment at 7.2% in alignment with its strategic goals. This decision was communicated to the Dangote Refinery months ago.
Former Nigerian Minister of Education, Oby Ezekwesili, has called for an independent audit of the transaction. She questioned why the Nigerian government borrowed $3.3 billion from Afreximbank for a stake in the refinery that was not fully realized. Ezekwesili urged President Bola Tinubu to launch an audit to clarify the situation.
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