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How we supported Dangote refinery during their liquidity challenges- NNPC

 


The Nigerian National Petroleum Company (NNPC) Limited says the company’s decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote refinery during liquidity challenges.

 

Femi Soneye, NNPC’S spokesperson, spoke on Monday during an energy stakeholder engagement.

 

“A strategic decision to secure a $1 billion loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery,” he said.

 

“This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development.”

 

Soneye said the national oil firm has achieved innovative milestones and redefined the trajectory of Nigeria’s oil and gas sector under the leadership of Mele Kyari, NNPC’s group chief executive officer (GCEO),

 

“The restart of the Port Harcourt Refinery marks a significant turning point in Nigeria’s quest for energy self-sufficiency, reaffirming the company’s commitment to revitalizing the nation’s refining capacity,” he said.

 

“NNPC has also championed the adoption of Compressed Natural Gas (CNG) as an alternative energy source, offering Nigerians a cleaner and more cost-effective solution amidst rising global energy costs.

 

“In a historic achievement, NNPC, under Kyari’s leadership, declared profit for the first time in decades, marking a significant financial turnaround.”

 

The NNPC spokesperson added that the company has already exceeded its “profit projections for 2024”, describing the development as a “testament to the transformative reforms he has implemented”.

 

Additionally, he sald Kyari facilitated the $3 billion gazelle loan, “a critical intervention that helped stabilize the federation during a challenging foreign exchange crisis”.

 

“As a responsible energy company, NNPC Ltd continues to strengthen Nigeria’s energy sector while solidifying its legacy as a transformative force and a global game-changer,” Soneye said.

 

The NNPC reduced its stake in the Dangote refinery to 7.2 percent, a cut from 20 percent, after it failed to pay the balance of a deal worth $2.7 billion.

 

The NNPC paid $1 billion upfront in cash in 2021, with a balance of $1.76 billion which was supposed to be paid for in crude supplies.

 

Speaking on the rationale behind the change in stake, the firm explained that the plan was to invest in CNG.

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