The Nigerian National Petroleum Company (NNPC) Limited has said its decision to limit its equity participation in the Dangote Petroleum Refinery was made months ago.
Femi Soneye, the spokesman of the NNPC disclosed in a statement.
He noted that the company routinely evaluates its investment portfolio to ensure it aligns with its strategic goals.
Recall that on Sunday, Aliko Dangote, Africa’s richest man, revealed that NNPC’s stake in his refinery had decreased from 20 percent to 7.2 percent due to NNPC’s failure to pay the balance of their share, which was due in June.
While responding to this, Soneye stated that Dangote Refinery was informed well in advance of NNPC’s decision to cap its equity participation at the paid-up amount.
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals,” he said.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.”
In September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion. According to NNPC’s 2022 audited financial statements, NNPC Greenfield holds this investment.
The company stated that the remaining $1.76 billion of the equity investment cost would be paid upon the refinery’s completion or at a mutually agreed date.
The Dangote Refinery commenced production on January 12, marking a significant milestone in Nigeria’s petroleum industry.