The Nigerian National Petroleum Company (NNPC) Limited has announced that it reduced its stake in the Dangote Petroleum Refinery from 20 percent to 7.2 percent to redirect investments into compressed natural gas (CNG).
The move aligns with NNPC’s strategy to promote cleaner and cheaper alternative energy sources in Nigeria.
Femi Soneye, the NNPC spokesperson, made this disclosure during an appearance on the Brekete Family program.
Soneye emphasized that the decision to reduce the stake was driven by the company’s commitment to expanding CNG infrastructure across the country, providing Nigerians with a cost-effective energy option.
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.
Soneye also clarified that NNPC has no issues with the Dangote Refinery and is not collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sabotage the refinery.
Soneye added, “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.
“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.
He equally disclosed that the Petroleum Industry Act (PIA) does not give NNPC the power to stop the Dangote refinery.
He articulated, “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.
“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?”
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