The Dangote Petroleum Refinery has rejected the Nigerian National Petroleum Company Limited’s (NNPCL) claim that it facilitated a $1 billion investment in the refinery amid liquidity challenges. According to the refinery, this claim is a misrepresentation of the facts, as the $1 billion loan represents only 5% of the total investment in the refinery.
The refinery’s management explained that their decision to partner with NNPCL was based on the company’s strategic position in the industry as the largest off taker of Nigerian crude. The partnership involved the sale of a 20% stake in the refinery to NNPCL, valued at $2.76 billion. However, NNPCL was only able to pay $1 billion, with the balance to be recovered over five years through deductions on crude oil supplies and dividends.
The refinery’s management also noted that NNPCL failed to meet its obligations, including supplying the agreed 300,000 barrels of crude per day. As a result, NNPCL’s equity share in the refinery was revised down to 7.24%.
In a statement, the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, emphasized that NNPCL remains a valued partner, but it is essential to adhere to the facts and present the narrative in the correct context
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