NNPC To Acquire 20 Per Cent Stake In Oil Refineries

As part of steps to attract investment, President Muhammadu
Buhari has authorized the Nigerian national Petroleum Corporation
(NNPC) to acquire 20 per cent stake in any private oil refinery
producing at least 50,000 barrels per day (bpd).

It was learnt that the NNPC will soon get 20 per cent stake in
the $19.5 billion Dangote Refinery in Lagos. It has a capacity for
650,000 bpd.

According to a source in the oil giant, its stake will enable
the private refineries to easily secure crude from the market.

The top source said: “The President directed that any investor
building a refinery of 50,000 barrels per day in Nigeria, will
allow the NNPC to acquire a minority share of not more than 20 per
cent.

“He gave the directive to safeguard the nation’s energy
security.

“The presidential approval did not focus on any specific
refinery. The minority share applies to all refineries beginning
with those producing at least 50,000 bpd. This is not about any
tribe or religion, it is about investment.

“There are so many issues involved in the acquisition including
the payment, the board composition and others which are being
worked out.

“The overall objective is to encourage more investors to come to
the sector to put an end to Nigeria’s dependence on imported
petroleum.

“The government’s minority stake will boost investors’
confidence in oil refinery.”

Another source, added that NNPC will soon acquire 20% stake in
the Dangote Refinery.

The source explained: “I think talks or negotiations have almost
reached appreciable stage for the NNPC to secure the 20 per cent
stake.

“Besides NNPC, three foreign companies have also shown interest
in Dangote Refinery. It is one of the biggest investments in
Nigeria.”

Apart from foreign investors, Dangote has signed a loan of $650
million with the African Export-Import Bank (Afreximbank) on the
project.

Also, the Central Bank of Nigeria (CBN) is expected to provide
“guarantees for about N575billion” for 10 years.

African Development Bank is making available a $300million
facility.

As part of steps to attract investment, President Muhammadu
Buhari has authorized the Nigerian national Petroleum Corporation
(NNPC) to acquire 20 per cent stake in any private oil refinery
producing at least 50,000 barrels per day (bpd).

It was learnt that the NNPC will soon get 20 per cent stake in
the $19.5 billion Dangote Refinery in Lagos. It has a capacity for
650,000 bpd.

According to a source in the oil giant, its stake will enable
the private refineries to easily secure crude from the market.

The top source said: “The President directed that any investor
building a refinery of 50,000 barrels per day in Nigeria, will
allow the NNPC to acquire a minority share of not more than 20 per
cent.

“He gave the directive to safeguard the nation’s energy
security.

“The presidential approval did not focus on any specific
refinery. The minority share applies to all refineries beginning
with those producing at least 50,000 bpd. This is not about any
tribe or religion, it is about investment.

“There are so many issues involved in the acquisition including
the payment, the board composition and others which are being
worked out.

“The overall objective is to encourage more investors to come to
the sector to put an end to Nigeria’s dependence on imported
petroleum.

“The government’s minority stake will boost investors’
confidence in oil refinery.”

Another source, added that NNPC will soon acquire 20% stake in
the Dangote Refinery.

The source explained: “I think talks or negotiations have almost
reached appreciable stage for the NNPC to secure the 20 per cent
stake.

“Besides NNPC, three foreign companies have also shown interest
in Dangote Refinery. It is one of the biggest investments in
Nigeria.”

Apart from foreign investors, Dangote has signed a loan of $650
million with the African Export-Import Bank (Afreximbank) on the
project.

Also, the Central Bank of Nigeria (CBN) is expected to provide
“guarantees for about N575billion” for 10 years.

African Development Bank is making available a $300million
facility.