Why NNPC Lowered Stake in Dangote Refinery -Official

Soneye addressed allegations of sabotage against Dangote refinery on Berekete Family Radio. He emphasized NNPC’s investment in CNG due to its affordability and cleaner energy potential.

“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.”

READ ALSO: Concerns Over NNPCL Failure To Comply With FG’s Directives To Sell Crude To Local Refineries In Naira

Soneye highlighted the benefits of CNG, stating, “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?”

He denied sabotage allegations, citing NNPC’s 7.2% stake in Dangote refinery. “We invested billions of naira into the Dangote refinery… So, why would we want to sabotage such a company?”

Soneye clarified the role of Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Chief Executive, Farouk Ahmed, as a regulator overseeing all operators, including NNPC.

READ ALSO: NNPC Ltd Exports First Shipment Of New Crude Blend, Utapate To International Market

In 2021, NNPC acquired a 7.25% stake in Dangote refinery for $1.0 billion, with an option to purchase an additional 12.75% stake by June 2024. However, NNPC has since reconsidered acquiring the additional stake.