By 9jaeye 
Aliko Dangote, Africa’s richest industrialist, has expressed disappointment over the Nigerian National Petroleum Company’s (NNPC) decision to lower its stake in the Dangote Petroleum Refinery to 7.2 percent. The NNPC initially acquired a 20 percent interest in the refinery for $2.76 billion in September 2021.
In a recent statement, Dangote labeled the move as “confusing,” questioning why the national oil company chose to diminish its investment. He explained the original agreement was structured to facilitate a significant financial commitment from the NNPC. “We provided a good deal, so it’s perplexing that they opted to reduce their stake,” he stated.
Dangote detailed the financial arrangement: “The initial agreement required them to pay $1 billion, out of a total deal worth approximately $2.79 billion. They settled $1 billion over a year and a half ago, with the remaining funds split into two parts.” He mentioned that for every barrel of crude supplied—300,000 barrels per day—$2 would be deducted until the balance was paid, with another third coming from the NNPC’s profits.
He revealed that negotiations aimed at restructuring the agreement so the NNPC could pay in cash had also taken place. “We signed a new agreement, cancelling the previous one. This new deal required them to pay us the remaining $1.8 billion after one year, with no interest,” he explained. However, when the payment month arrived in June, the NNPC opted to retain its reduced stake.
“There are no ongoing negotiations; the agreement is finished, dead, and completed,” Dangote asserted.
In another part of the interview, Dangote highlighted the pricing of petrol from his refinery. He stated that the Premium Motor Spirit (PMS) sold by the Dangote refinery is 15 percent cheaper than imported petrol. Following a series of negotiations, the NNPC began lifting petrol from the refinery on September 15, reportedly purchasing it at N898 per litre.
Dangote refuted claims made by the NNPC regarding pricing, calling them “misleading and mischievous.” He clarified that the interactions between the refinery and NNPC were not outright disagreements. “At the time NNPC purchased PMS from us, they were also importing petrol,” he noted, stating that the imported product was 15 to 20 percent more expensive than what they bought from the Dangote refinery.
He elaborated that the price announced by the NNPC did not reflect the true cost, as it included additional expenses and profit margins, which were not typically factored into their import costs. “People are unaware of how much they spend on imports. Their imported petrol costs significantly more than ours,” he concluded.