Dangote: NNPC Made Huge Mistake By Reducing Stake in Our Refinery from 20% to 7.2%

Aliko Dangote, Africa’s wealthiest man and President of Dangote Group, has criticized the Nigerian National Petroleum Company (NNPC) for reducing its stake in his Lagos-based refinery from 20% to 7.2%.

Dangote disclosed in a Bloomberg interview that the NNPC opted out of a favorable agreement that would have been beneficial to both parties, which he believes was a significant mistake.

He noted that there would be no further negotiations as the deal is concluded.

Dangote also shared that NNPC would supply his refinery with 390,000 barrels of crude oil per day from October, with payments settled in naira.

This move, he stated, could reduce pressure on Nigeria’s currency by up to 40%. Additionally, he expressed reluctance to heavily invest in Nigeria’s upstream oil sector, despite having two oil blocks set to begin production.

Furthermore, Dangote highlighted the positive impact his refinery would have on the local economy, especially in stabilizing the naira.

He confirmed that his refinery began supplying fuel to NNPC in mid-September, offering a cheaper alternative to imported petroleum.

He also addressed past controversies, including a raid by the Economic and Financial Crimes Commission (EFCC) and his earlier interest in purchasing Arsenal Football Club.

Business Day