Aliko Dangote, chairman of Dangote Industries Limited, clarifies the circumstances surrounding a $1 billion payment from the Nigerian National Petroleum Company (NNPC) for his company's refinery project. He states that the payment, a fraction of the total $20 billion investment, was intended as an upfront cash contribution with a balance to be paid in crude supplies. Dangote also explains the refinery's decision to reduce the ex-depot petrol price to N899.50, citing market realities and the need to protect investments.
Aliko Dangote , chairman of Dangote Industries Limited, says the Nigerian National Petroleum Company Limited’s $1 billioIn an Arise TV documentary video on Monday, the billionaire said the contribution was a fragment of investments in the refinery.“In 2021, when we signed the agreement, even if you give us $1 billion, $1 billion is a drop in the ocean in a $20 billion refinery,” Dangote said.
Dangote said sometime later, the NNPC decided to back out of the transaction abruptly when the payment was due. “It is a refinery where we invested over $20 billion and I think we have to try and protect our interests and also our investments,” the business tycoon said.Dangote said when the country imports petroleum products, there is more pressure on foreign exchange .
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