Dangote to NNPC Ltd: Your statement on $1bn refinery investment inaccurate, misleading

Dangote Petroleum Refinery has refuted claims made by the Nigerian National Petroleum Company Limited (NNPCL) about its role in a $1 billion refinery investment. Describing NNPCL’s statement as misleading, Dangote clarified that the $1 billion crude-backed loan represented only 5% of the total investment in its 650,000 barrels-per-day facility. During a stakeholders ‘ meeting earlier this week, this response followed NNPCL’s assertion that the loan exemplified its commitment to public-private partnerships and infrastructure development.

According to Anthony Chiejina, Dangote Refinery’s Chief Branding and Communications Officer, NNPCL’s claims were inaccurate and omitted significant details about their financial partnership. He revealed that in 2021, NNPCL sought a 20% equity stake in the refinery, valued at $2.76 billion, but the deal fell through as NNPCL failed to supply the agreed volume of 300,000 barrels of crude per day. Instead, NNPCL secured a smaller $1 billion investment, leading to a downgraded 7.24% equity stake.

Dangote Refinery emphasized that their financial arrangements with NNPCL were not due to liquidity challenges, as claimed. The company criticized NNPCL for misrepresenting facts, asserting that its partnership terms were credit-driven rather than cash-based. While reaffirming its commitment to working with NNPCL, Dangote urged stakeholders to maintain accuracy in public narratives to avoid misleading the public and investors.