Nigerian state-owned oil firm NNPC shareholding in Dangote refinery has been whittled down to 7.2% from 20% after failing to pay the balance of funding owed, Aliko Dangote, the refinery’s owner told the BusinessDay newspaper.

NNPC has decided to cap its shareholding at 7.2%, which it has paid for and was communicated to the Dangote refinery, NNPC spokesperson Olufemi Soneye said in a statement.

NNPC, which is in talks over another oil-backed loan to boost its finances, agreed three years ago to buy shares for $2.7 billion in the 650,000 barrels per day refinery.

But Dangote told reporters during a briefing at the plant on the outskirts of Lagos on Sunday that NNPC failed to meet its part of the deal, the BusinessDay newspaper reported on Monday.

“NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) 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 was quoted saying.

NNPC is grappling with growing debt owed to gasoline suppliers, while the cost of gasoline subsidies has further depleted its cash reserves.
The Dangote refinery has struggledto secure enough crude supplies locally because Nigeria’s production is constrained by lack of investment, pipeline vandalism and crude theft.

That has forced the refinery to import U.S. crude to reach its full capacity next year.

Dangote said he expected the refinery and a fertiliser plant, which is in the same complex, to be listed on the Nigerian stock exchange in the first quarter of 2025.

A senior company executive said in May the refinery aimed for a dual listing on the London and Lagos bourses.
Source: Reuters (Reporting by MacDonald Dzirutwe, additional reporting by Camillus Eboh in Abuja, Editing by Louise Heavens)