Dangote Refinery has clarified that the $1 billion loan secured by the Nigerian National Petroleum Company Limited (NNPC Ltd) was not used to resolve liquidity issues, but was an investment to acquire a 7.24% share in the refinery.
This response follows claims by NNPC’s Olufemi Soneye, who suggested the loan helped overcome financial difficulties for the refinery.
According to Dangote Refinery, the $1 billion represents only about 5% of the total investment in the project, and the partnership was structured around the sale of a 20% stake for $2.76 billion, with favorable payment terms.
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The refinery further explained that NNPC’s equity share was reduced due to its inability to fulfill a crude oil supply agreement.
As a result, NNPC’s stake was adjusted to 7.24% after missing a payment deadline in June 2024.
The refinery emphasized that the investment was aimed at acquiring ownership, benefiting both parties, and not as a response to liquidity challenges.