By Newsshelve Correspondent.
In a recent statement, the Dangote Refinery has clarified the nature of its partnership with the Nigerian National Petroleum Company Limited (NNPCL), debunking claims that NNPCL’s $1 billion loan was instrumental in supporting the refinery during liquidity challenges.
According to the statement, the $1 billion loan represents only about 5% of the total investment in the project, which stands at $20 billion.
The refinery’s management emphasized that the partnership with NNPCL was based on the latter’s strategic position in the industry, and not due to any liquidity challenges.
Dangote refinery’s statement revealed that NNPCL acquired a 20% stake in the project, valued at $2.76 billion, with an initial payment of $1 billion.
The balance was to be recovered over a period of five years through deductions on crude oil supplies and dividends.
Contrary to NNPCL’s claims, the refinery’s management stated that they would not have offered such generous payment terms if they were struggling with liquidity challenges. As of 2021, when the agreement was signed, the refinery was still in the pre-commissioning stage.
The refinery also noted that NNPCL failed to meet its obligations, including the supply of 300,000 barrels of crude oil per day. As a result, the refinery revised NNPCL’s equity share down to 7.24%.
The statement emphasized that NNPCL’s investment in Dangote refinery was a strategic business decision, aimed at acquiring an ownership stake beneficial to its interests.
The refinery’s management urged all stakeholders to adhere to the facts and present the narrative in the correct context.
This development comes amid recent reports that NNPCL had supported the Dangote Refinery with a $1 billion loan.
However, the refinery’s statement has clarified the nature of the partnership, setting the record straight on the terms of the agreement and the circumstances surrounding it.
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