NNPC: Reduced Dangote Refinery Stake For CNG Investment | ClipTV Online

Nigerian National Petroleum Company (NNPC) Limited has confirmed that its stake in Dangote Petroleum Refinery was reduced to 7.2 percent to invest in compressed natural gas (CNG).

This was earlier daclared by Femi Soneye, NNPC’s spokesperson on Monday.

As at September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion.

However, on July 14, Aliko Dangote, Africa’s richest person, said the national oil company now owns 7.2 percent stake in the refinery.

“NNPC no longer owns 20 percent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.

On the other hand, Soneye said the company does not have any issues with Dangote refinery, adding that NNPC was not collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sabotage the refiner.

“The reason for reducing our stake in Dangote refinery is because we wanted to invest in CNG. We observed that CNG is very cheap and all over the world, people are investing in clean and cheaper alternative energy,” Soneye said.

Mentioning that it is cheaper for Nigerians to use CNG. “That is why the NNPC is building different CNG stations everywhere. We understand that with N10,000, Nigerians can fill their cars and use it for two weeks. We realised that gas is cheaper in Nigeria, why don’t we invest in it since this is what people are doing all over the world?” he argued.

The spokesperson also said the Petroleum Industry Act (PIA) does not give NNPC the power to stop the Dangote refinery.

“We want all Nigerians to know that the NNPC does not have any issue with the Dangote Refinery. We are part of the owners of the Dangote refinery and we don’t want it to collapse,” Soneye said.

“We invested billions of naira into the Dangote refinery. As of today, we have a 7.2 per cent stake in the refinery. So, why would we want to sabotage such a company?”

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