The Dangote Refinery is reportedly set to divest a 12.7 per cent stake in 2024 to facilitate loan servicing.
This development was disclosed in a recent report published by Fitch Ratings, a credit rating agency.
Fitch noted that the Nigerian National Petroleum Company Limited (NNPCL) had previously intended to purchase a 20 per cent stake in the refinery.
Nevertheless, the agency pointed out that the national oil company’s choice not to pursue its option of acquiring an additional 12.75 per cent by June 2024 could adversely affect the group’s capacity to manage its loan obligations.
In 2021, the NNPC secured a 7.25 per cent stake in the refinery for $1.0 billion, with the option to acquire the remaining 12.75 per cent by June 2024. However, the national oil company has since withdrawn from this commitment.
“Since the option has not been exercised, the group plans to divest a 12.75 per cent stake in DORC in 2024.
“The group intends to service its significant syndicated loan maturing in August 2024 from the equity divestment. However, timely divestment and meeting the imminent maturity are highly uncertain in our view,” Fitch said.
Naija News recalls that in July, the President of the Dangote Group, Alhaji Aliko Dangote, revealed that the NNPC holds only a 7.2 per cent stake in the refinery, contrary to the common belief among many Nigerians that it possesses a 20 per cent stake.
Dangote said: “The agreement was actually 20 per cent which we had with NNPC, and they did not pay the balance of the money up till last year; then we gave them another extension up till June (2024), and they said that they would remain where they have already paid, which is 7.2 per cent. So NNPC owns only 7.2 per cent, not 20 per cent.”
In a subsequent statement, the NNPC revealed that it has decided not to invest further in the refinery.
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,” the NNPC said in a statement by its spokesperson, Olufemi Soneye.
In the meantime, Nigeria’s former Minister of Education, Oby Ezekwesili, has advocated for an independent audit to investigate the reasons behind the Nigerian National Petroleum Company Limited’s decision to limit its investment in the Dangote Petroleum Refinery to 7.2 per cent, rather than the initial intended 20 per cent.
“Did the Nigerian government not tell us it borrowed $3.3bn from Afriexim-Bank to take a stake in the Dangote refinery?” Ezekwesili asked, calling on President Bola Tinubu to immediately launch an independent audit of the Dangote refinery-NNPC transaction to offer the public the true state of play.