AFRICA

NNPC Denies Sabotage Allegations, Says It Reduced Stake in Dangote Refinery To Invest In CNG

The Nigerian National Petroleum Company (NNPC) Limited has clarified that its stake in the Dangote Petroleum Refinery was reduced from 20% to 7.2% to invest in compressed natural gas (CNG).

NNPC’s spokesperson, Femi Soneye, made this statement during a Brekete Family programme on Monday.

In September 2021, NNPC acquired a 20% interest in Dangote refinery for $2.76 billion.

However, Aliko Dangote, Africa’s richest person, revealed on July 14 that NNPC’s stake in the refinery had been reduced to 7.2%.

Soneye explained, “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.”

He emphasised that CNG is a cost-effective option for Nigerians, 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?”

Regarding allegations of sabotage, Soneye denied any issues with Dangote refinery, he said , “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.”

He added, “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?”

Soneye also addressed the dispute between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote refinery,he said that the Petroleum Industry Act (PIA) does not give NNPC the power to stop the Dangote refinery.

He clarified that NMDPRA’s chief executive officer, Farouk Ahmed, speaks in his capacity as a regulator in charge of all operators in the midstream and downstream, including 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.

The dispute between NMDPRA and Dangote refinery began on July 18, when Ahmed claimed that local refineries, including the Dangote Petroleum Refinery, were producing inferior products compared to imported ones.

He also said that Dangote requested the suspension of all importation of petroleum products and directed all oil marketers to his refinery. Dangote denied these claims.

Chioma Kalu, Boluwatife Enome

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