NNPC Ltd's loan secured with crude oil helped Dangote Refinery overcome liquidity challenges and establish Nigeria's first private refinery. NNPC's equity stake in the refinery was reduced from 20% to 7.25% due to its inability to pay the remaining balance of its share.
NNPC Ltd on Monday said a strategic decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote Refinery during liquidity challenges.The move, according to the company, paved the way for the establishment of Nigeria ’s first private refinery. Olufemi Soneye, the chief corporate communications officer of NNPC Ltd, disclosed this while speaking at the energy relations stakeholder engagement held in Abuja on Monday.
Although the NNPC initially had an equity of about 20 per cent in the refinery, it was subsequently reduced to 7.25 per cent. Speaking at a press briefing at the refinery in July, the President of Dangote Group, Aliko Dangote, said NNPC Ltd owns only 7.2 per cent stake in the refinery due to its failure to pay the balance of its share, which was due in June. Confirming the development in a statement at the time, the NNPC Ltd said its assessment of the investment portfolio led to the decline in its share of the refinery
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