Dangote Refinery has clarified that they did not receive a $1 billion loan from NNPC.

In a recent statement, the management of Dangote Group has addressed claims made by the Nigerian National Petroleum Company Limited (NNPCL) regarding a purported $1 billion loan that was said to have supported the Dangote Refinery. Anthony Chiejina, the Group Chief Branding and Communications Officer, emphasized that this assertion is misleading.

Chiejina clarified that the $1 billion in question was not a loan but rather part of a larger investment agreement. Specifically, NNPCL was expected to pay $1 billion as part of a total investment of $2.76 billion for a 20 percent stake in the refinery. The failure of NNPCL to fulfill the agreed terms has resulted in a significant reduction of its stake to 7.24 percent.

The statement further elaborated on the context of the partnership, noting that the collaboration was established due to NNPCL’s strategic position as the largest off-taker of Nigerian crude oil and its role as the sole supplier of gasoline in Nigeria at the time. The agreement included provisions for the recovery of the remaining balance over five years through deductions from crude oil supplied to the refinery and dividends owed to NNPCL.

In conclusion, Dangote Group seeks to clarify the nature of its financial arrangements with NNPCL, asserting that the recent claims do not accurately reflect the true nature of their partnership and investment in the Dangote Refinery.