Report: NNPC mulls $2.5bn loan facility for stake in Dangote Refinery

The Nigerian National Petroleum Corporation (NNPC) is reportedly in talks with investors to borrow $2.5 billion to acquire a stake in the Dangote Refinery.

Reports by Daily Independent, said the state-owned oil firm is discussing with African Export-Import Bank (Afreximbank) for the loan.

“The state-owned corporation’s quest for the loan may have been informed by the need to hasten the completion of the $15 billion facility which is expected to come alive early next year,” the report stated.

At the 2021 edition of the Nigerian Oil & Gas Opportunity Fair (NOGOF), Mustapha Yakubu, NNPC chief operating officer, refining and petrochemicals, said NNPC is in discussion with Dangote Group on acquisition of a 20 percent minority equity stake.

“…I can tell you today that we are seeking to have a 20 per cent minority stake in Dangote Refinery as part of our collaboration and you know that there’s a huge quantity of crude for that refinery,” he had said.

Kenni Obateru, the NNPC spokesperson, told TheCable that the corporation cannot discuss the equity stake and funding sources for now.

“Discussions on the acquisition of equity in private refineries by NNPC are still ongoing, hence, we can’t discuss details about them and sources of funds for now,” he said.

Afreximbank is yet to reply to TheCable’s enquiry on the proposed loan request.

The Dangote Refinery, currently under construction in the Lekki Free Zone, Lagos, is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility upon completion.