Clarification of Investment Details
Dangote Refinery disputed NNPCL’s recent $1bn loan claim, asserting it represented just 5% of the $12bn investment. The refinery highlighted its 650,000-barrel-per-day capacity, refuting NNPCL’s portrayal of the loan’s significance in the partnership. Dangote emphasized that NNPCL’s statements misrepresented the scale and details of their collaboration.
NNPCL’s Claims at Stakeholder Meeting
During a stakeholder engagement on Monday, NNPCL’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, revealed the company had secured a $1bn crude-backed loan to facilitate the refinery’s operations. He highlighted the loan as a sign of NNPCL’s commitment to fostering public-private partnerships aimed at boosting Nigeria’s economic growth. However, the Dangote Group’s response came swiftly, pointing out that the $1bn loan did not reflect the full scale of the investment, which was much larger.
Dangote’s Response to NNPCL’s Claims
Anthony Chiejina of Dangote Refinery clarified Wednesday that NNPCL’s $1bn loan was less significant than suggested. Dangote described NNPCL’s claim as misinformation, correcting public records about the scale of its contribution. The refinery stated the $1bn loan represented a small portion of the $12bn total investment, contradicting earlier reports.
Failed Stakeholder Agreement with NNPCL
Chiejina further elaborated on the historical context of the NNPCL-Dangote partnership. In 2021, NNPCL had proposed to acquire a 20% stake in the Dangote refinery for $2.76bn. However, this agreement fell through due to NNPCL’s inability to supply the agreed 300,000 barrels of crude oil per day, which was a critical component of the deal. As a result, NNPCL’s stake was downgraded to 7.24%, with the balance of the payment due through deductions from crude oil supplied by NNPCL.
Liquidity Challenges and Payment Terms
The Dangote Group also addressed allegations of liquidity issues, stating that the terms of the agreement with NNPCL were highly favorable. Despite challenges in NNPCL’s ability to meet its obligations, Dangote offered generous payment terms, including a 12-month grace period for the national oil firm to settle its equity stake. When NNPCL failed to meet the agreed deadline, the equity share was revised downward, further clarifying the nature of the business relationship.
Misleading Narrative on NNPCL’s Role
In conclusion, Dangote Refinery emphasized the importance of presenting accurate facts to the public and stakeholders. While acknowledging NNPCL as a valuable partner, Dangote insisted that the narrative surrounding the $1bn investment was misrepresented. The company stressed that stakeholders and the media must adhere to the facts to avoid misleading the public on the refinery’s operations and financial structure.
Follow us on Socials: