Olufemi Adeyemi
Dangote Refinery’s ownership structure, as clarified by Aliko Dangote, indicates that NNPC holds a minority stake of 7.2%.
The CEO of Dangote Refinery, Aliko Dangote, announced on Sunday that the Nigerian National Petroleum Corporation (NNPC) no longer holds a 20% stake in the refinery.The wealthiest man in Africa made this statement during a
press conference held in Lagos State.
As per his statement, the Nigerian National Petroleum
Corporation (NNPC) no longer holds a 20% stake in the Dangote refinery. They
were expected to settle their outstanding balance in June, but they have not
yet fulfilled their obligations. Consequently, their current stake in the
refinery has been reduced to 7.2%.
However, the Dangote Petrochemical refinery, owned by Africa’s prominent industrialist Aliko Dangote, is poised to revolutionize Nigeria’s premium motor spirit (PMS) pricing structure by introducing market-driven pricing.
The Nigerian National Petroleum Corporation Limited (NNPCL) has maintained a regulated pricing system for petroleum products, acting as the exclusive importer. However, Dangote is progressively gaining market share with its recent announcements regarding the commencement of PMS supply.
The NNPC Limited price-control mechanism has resulted in the sale of Premium Motor Spirit (PMS), commonly known as petrol, at a regulated price of approximately N600 per liter, despite the implementation of deregulation policies. This measure has proven ineffective in addressing fuel supply challenges, as fuel shortages have reemerged in various regions of the country.
With the formal commencement of the official kick-off, marketers have initiated the registration process to procure products from the refinery.
On July 14, 2023, Dangote Refinery CEO Aliko Dangote made a significant announcement regarding the company’s ownership structure. He clarified that the Nigerian National Petroleum Corporation (NNPC) Limited no longer holds a 20% stake in Dangote Refinery.
Concerns were previously raised when Dangote began procuring crude oil from the United States, despite NNPCL’s alleged 20% ownership interest in the refinery.