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Why NNPC reduced stake in Dangote Refinery – Audited Report

The Nigerian National Petroleum Company Limited (NNPC Ltd) has explained why it reduced its stake in the Dangote Refinery.

The NNPC Ltd, in its 2023 audited financial statement, said in September 2021, it proposed to acquire 20 per cent interest in Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise (DPRP FZE).

It explained that the interest, worth $2.76 billion, was financed by a forward sale agreement of $1.036 billion from Lekki Refinery Funding Limited of which $1 billion was paid to Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise (DPRP FZE).

This investment, it said, was initially held by NNPC Greenfield Limited (a special purpose vehicle 100 per cent owned by NNPC) in trust for NNPC Limited.

“Due to restructuring of the NNPC Limited Post PIA era, the function of this unit has been moved to NNPC Downstream Investment Service (NDIS).