The Nigerian National Petroleum Company (NNPC) Limited says its stake in Dangote Petroleum Refinery was reduced to 7.2 percent to invest in compressed natural gas (CNG).
Femi Soneye, NNPC’s spokesperson, spoke during a Brekete
Family programme on Monday.
In September 2021, NNPC acquired a 20 percent interest in
Dangote refinery for $2.76 billion.
However, on July 14, Aliko Dangote, Africa’s richest person,
said the national oil company now owns 7.2 percent stake in the refinery.
Also, Soneye said the company does not have any issues with
Dangote refinery, adding that NNPC was not collaborating with the Nigerian
Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sabotage
the refiner.
“The reason for reducing our stake in Dangote refinery is
because we wanted to invest in CNG. We observed that CNG is very cheap and all
over the world, people are investing in clean and cheaper alternative energy,”
Soneye said.
He said if Nigerians use CNG, it will be cost-effective for
them.
“That is why the NNPC
is building different CNG stations everywhere. We understand that with N10,000,
Nigerians can fill their cars and use it for two weeks. We realised that gas is
cheaper in Nigeria, why don’t we invest in it since this is what people are
doing all over the world?” Soneye said.
The spokesperson said the Petroleum Industry Act (PIA) does
not give NNPC the power to stop the Dangote refinery.
“We want all Nigerians to know that the NNPC does not have
any issue with the Dangote Refinery. We are part of the owners of the Dangote
refinery and we don’t want it to collapse,” Soneye said.
“We invested billions of naira into the Dangote refinery. As
of today, we have a 7.2 per cent stake in the refinery. So, why would we want
to sabotage such a company?”
DANGOTE REFINERY VS
NMDPRA
Soneye said anytime Farouk Ahmed, NMDPRA’s chief executive
officer (CEO), speaks about the Dangote refinery, it is in his capacity as a
regulator in charge of all operators in the midstream and downstream, including
the NNPC.
“Mr Farouk Ahmed is the head of Nigeria’s mainstream and
downstream petroleum regulatory authorities. They have power over all
refineries. Anything that has to do with the distribution of petrol, they are
in charge. In fact, they are superior to the NNPC in that sector. We don’t have
anything to do with them,” he said.
NMDPRA and Dangote refinery have been embroiled in a
dispute.
On July 18, Ahmed said local refineries, including the
Dangote Petroleum Refinery, were producing inferior products compared to the
ones imported into the country.
He also said Dangote requested all importation of petroleum
products — especially automotive gas oil (AGO) or jet kero — be suspended or
stopped, and all oil marketers be directed to his refinery.
However, Dangote denied Ahmed’s claim.
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