Dangote denies NNPCL’s $1b support claim, crude obligations default
19 December 2024 |
4:52 am
The Dangote Group has dismissed claims by the Nigerian National Petroleum Company Limited (NNPCL) that it provided a $1 billion loan, backed by crude oil, to support the facility .
The Dangote Group has dismissed claims by the Nigerian National Petroleum Company Limited (NNPCL) that it provided a $1 billion loan, backed by crude oil, to support the facility .
Insisting that the national oil company did not in any way provide a bailout to the refinery, Dangote noted in a statement, yesterday, signed by the Group Chief Branding and Communications Officer, Anthony Chiejina, clarified that the $1 billion represented only about five per cent of the total investment in the refinery.
Chiejina said the partnership between Dangote and NNPCL was based on the latter’s strategic position as the largest off-taker of Nigerian crude and the sole supplier of gasoline in the country at the time.
He said while NNPCL acquired a 20 per cent stake in the refinery valued at $2.76 billion, it initially agreed to pay $1 billion upfront, with the balance to be recovered over five years through crude supply deductions and dividends.
“If we were struggling with liquidity challenges, we would not have given them such generous payment terms,” Chiejina stated, adding that the agreement was signed in 2021 when the refinery was still at the pre-commissioning stage.
NNPCL was unable to meet its commitment to supply 300,000 barrels of crude oil per day as agreed, Chiejina said, adding that NNPC had prior obligations to other financiers and lower-than-expected production. He added that as a result, the Dangote Group granted NNPCL a 12-month grace period to pay the remaining balance in cash, a deadline that expired on June 30, 2024.
He said because of NNPCL’s inability to meet the deadline, its equity share was revised to 7.24 per cent. Chiejina emphasised that NNPCL’s $1 billion investment was purely for equity acquisition and not a bailout during financial difficulties. “It is, therefore, inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges,” he said.
On Monday, NNPCL said a decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote Refinery during liquidity challenges.
The Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, disclosed this at an energy relations stakeholders’ engagement, where he stressed that the loan paved the way for Dangote Refinery.
Related
1 day ago
Echezonachi, Founder Bonded by Tech has empowered 5,000 Nigerians with tech skills, steadily progressing toward its
ambitious goal of training 1.5 million young people by 2030.
1 day ago
The Tertiary Education Trust Fund (TETFund) has commissioned several educational projects worth N866,788,454.84 in Akamkpa Local Council, Cross River State, as part of efforts to enhance learning and academic excellence on campuses.
1 day ago
The Special Adviser to the President on Policy and Coordination, and Head of the Central Results Delivery Coordination Unit (CRDCU), Hadiza Bala Usman, yesterday, met with the Minister of Power, Bayo Adelabu, the Permanent Secretary, and Heads of Departments and Agencies under the Ministry of Power.
1 day ago
The Federal Government has announced that approximately 10 million Nigerians have received critical services at Primary Healthcare Centres (PHCs) across the country in the past year.
1 day ago
Angered by findings from the Ethics and Integrity Compliance Scorecard (EICS) for Ministries, Departments and Agencies (MDAs), the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has informed non-compliant MDAs
1 day ago
Barely 24 hours after President Bola Tinubu presented the 2025 Appropriation Bill, the Senate has passed the piece of legislation for second reading.The Red Chamber had earlier debated the 2025 Appropriation Bill after it was mentioned for the first reading focusing
1 day ago
The Department of State Services (DSS), yesterday, invited the Statistician-General of the Federation, Adeniran Adeyemi, for questioning following the release of a controversial survey report on ransom payments in Nigeria.
1 day ago
The National Boundary Commission (NBC) has reiterated its dedication to peace and cooperation across Nigeria’s borders while addressing the challenges associated with boundary management.
1 day ago
Lagos State House of Assembly has described as unfounded the allegation by an anti-corruption coalition that it awarded a N17 billion contract for the construction of the Assembly's gate. Chairman, House Committee on Information
1 day ago
Federal Capital Territory (FCT) Minister, Nyesom Wike, has revoked plots of land belonging to former President, Muhammadu Buhari; House of Representatives Speaker, Abbas Tajudeen; Secretary to the Government of the Federation (SGF), George Akume, and 759 others.
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.