The Nigerian National Petroleum Company (NNPC) Limited has announced a reduction in its stake in the Dangote Petroleum Refinery from 20 percent to 7.2 percent as part of a strategic shift towards investing in compressed natural gas (CNG).
NNPC spokesperson Femi Soneye disclosed this during an interview on Monday, emphasizing that the decision was driven by the company’s commitment to cleaner and more cost-effective energy alternatives. NNPC originally acquired a 20 percent interest in the Dangote refinery in September 2021 for $2.76 billion. However, as of July 14, Africa’s richest individual, Aliko Dangote, confirmed that NNPC’s stake now stands at 7.2 percent.
Soneye clarified that the reduction in stake was not due to any conflict with the Dangote refinery but rather a strategic move to invest in CNG. “We observed that CNG is very cheap, and globally, there is a significant shift towards clean and cheaper alternative energy,” Soneye explained. He highlighted that this investment would help make energy more affordable for Nigerians, with consumers able to fuel their cars for up to two weeks on just N10,000.
The NNPC spokesperson reassured the public that there is no friction between NNPC and the Dangote refinery, affirming that the company remains a committed part-owner of the refinery, with a significant investment of billions of naira in its development. “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 stated.
Addressing concerns about regulatory oversight, Soneye noted that Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), speaks on matters related to the Dangote refinery in his capacity as a regulator, not in opposition to NNPC. Soneye emphasized that NMDPRA has authority over all operators in the midstream and downstream sectors, including the NNPC, and any disputes or concerns are part of standard regulatory processes.
This strategic shift by NNPC underscores its focus on leveraging Nigeria’s abundant natural gas resources to drive sustainable energy solutions while maintaining its role in the development of the Dangote refinery.