• Latest
  • Trending
Why Nigeria wants 20% equity in Dangote refinery – NNPC GMD

Why Nigeria wants 20% equity in Dangote refinery – NNPC GMD

2 years ago
JUST IN: Tinubu holds first meeting with service chiefs

Tinubu’s meeting with opposition Reps-elect postponed

37 mins ago
JUST IN: Real Madrid, Benzema part ways

JUST IN: Real Madrid, Benzema part ways

50 mins ago
Kogi: APC candidate  picks primary school teacher as running mate

Kogi: APC candidate picks primary school teacher as running mate

1 hour ago
Makinde: I became poorer by 10% in last four years

We must begin process of healing PDP now, embrace unity – Makinde

8 hours ago
Championship begins Thursday as Sweden declares s*x as sport

Championship begins Thursday as Sweden declares s*x as sport

20 hours ago
Bauchi governor emerges PDP Governors’ Forum chairman

Bauchi governor emerges PDP Governors’ Forum chairman

20 hours ago
Security aides injured as gunmen attack Kogi governor’s convoy

Security aides injured as gunmen attack Kogi governor’s convoy

21 hours ago
Zamfara gov under investigation for diverting over N70bn- EFCC

Zamfara governor gives Matawalle ultimatum to return missing bullet proof SUVs

23 hours ago
Auxiliary: Why police can’t declare me wanted

Auxiliary: Why police can’t declare me wanted

1 day ago
Strike: NLC acting Labour Party’s script-  Onanuga

Strike: NLC acting Labour Party’s script- Onanuga

1 day ago
APC crisis worsens as vice chairman sues Adamu, Omisore

‘APC must follow its rules even if you expel me’ — vice chairman tells Adamu, Omisore

1 day ago
PDP crisis: I’ve accepted Atiku but Ayu must go-Wike

Subsidy: Wike backs Tinubu, says moving Nigeria forward requires tough decisions

1 day ago
BREAKING: Tinubu meets Ibori,Wike, Makinde

BREAKING: Tinubu meets Ibori,Wike, Makinde

2 days ago
Son of popular Fuji singer emerges best student in US high school

Son of popular Fuji singer emerges best student in US high school

2 days ago
JUST IN: NLC begins nationwide strike over fuel subsidy removal Wednesday

JUST IN: NLC begins nationwide strike over fuel subsidy removal Wednesday

2 days ago
JUST IN: Tinubu names  Gbajabiamila  CoS, Hadejia DCoS, Akume  SGF

Gbajabiamila speaks on appointment as Tinubu’s CoS

2 days ago
Tribunal dismisses petition against Makinde’s victory

Tribunal dismisses petition against Makinde’s victory

2 days ago
JUST IN: Police declare sacked PMS leader, Auxiliary wanted

JUST IN: Police declare sacked PMS leader, Auxiliary wanted

2 days ago
  • Contact Us
  • Advertise
Sunday, June 4, 2023
Newspeakonline
  • Home
  • Politics
  • Business
  • Entertainment
  • Technology
  • World
    • Africa
    • Americas
    • Asia
    • Europe
  • Opinion
  • Interview
  • Newspeak ExclusivesNew
No Result
View All Result
  • Home
  • Politics
  • Business
  • Entertainment
  • Technology
  • World
    • Africa
    • Americas
    • Asia
    • Europe
  • Opinion
  • Interview
  • Newspeak ExclusivesNew
No Result
View All Result
Newspeak
UBA
Home News

Why Nigeria wants 20% equity in Dangote refinery – NNPC GMD

Akinwande Soji-Ojo by Akinwande Soji-Ojo
August 25, 2021
in News
Reading Time: 4 mins read
0
Why Nigeria wants 20% equity in Dangote refinery – NNPC GMD
Share on FacebookShare on TwitterShare on WhatsAppShare on Telegram

>

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said the decision to buy 20 per cent stake in Dangote refinery by the Federal Government was to ensure the plant buys crude from Nigeria.

RelatedPosts

Tinubu officially resumes, meets Emefiele, Kyari

Emefiele: Dangote already repaying loans before commissioning refinery

Buhari, five African Presidents to commission Dangote Petroleum Refinery Monday

Kyari, who appeared before the House of Representatives Committee on Finance on Wednesday, during an interactive session on the Medium Term Expenditure Framework (MTEF) in Abuja, said the refinery had no obligation to buy crude from Nigeria prior to that decision.

He explained that the 20 per cent stake valued at $2.7 billion is tied to the refinery buying crude oil from Nigeria, adding that without the equity, Dangote refinery could buy cheap crude from Venezuela and import it into the country.

The GMD disclosed that the country had no strategic storage, noting that the equity stake wiould ensure that the country had a seat on the board of the company.

He also disclosed to the committee that Aliko Dangote, the billionaire owner of the refinery, was against the 20 per cent equity.

“He (Dangote) has the right to buy oil from anywhere,so you can’t force him to buy. We structured our equity participation that this refinery must buy at least 300,000 crude from us. This guarantees your market.

“Today, every country is struggling to secure market for their crude oil. This refinery does not owe us any responsibility if we don’t have this arrangement. That is why we tied our participation to the fact that this refinery must buy from us.

“This refinery is a very complex refinery; complex in our industry because it can crack any crude. So, it can buy any cheap crude from anywhere, and bring it into this country and leave you to your crude.

“We simply saw this opportunity, we said we are not going to take any government money to put into this. We are borrowing money from the AfriExim consortium to pay for our initial payment and also tied subsequent payments to him buying from our production.

“Our decision to take equity in the Dangote refinery was a very calculated and conscious decision. First, there is no resource-dependent country like ours anywhere and with a national oil company, will have a venture of this size and magnitude with its very clear security implications that is situated in a free trade zone. Literally, this refinery is not in this country.

“Today, we import 100 per cent of our refined products into this country. You now have a venture that will produce close to 50 million litres of petroleum products in this country where energy security is an issue. From my personal knowledge, the U.S. keeps stock on the ground that government owns it and that government pays for it and keeps it.

“As we speak today, we don’t have any strategic storage or arrangement. So no country will allow any venture of this nature to exist without having a seat on its board.

“Secondly, this company is situated in the free trade zone. The meaning of this is that there are several incentives granted to this business. If you look at our investment, total investment, of about $2.7 billion, not $5 billion, the total stake of 20 per cent is $2.7 billion, if you are to build 20 per cent of that capacity, which will be around 130 barrels per day capacity refinery.

“It is simply impossible to build a refinery of that capacity with that amount of money. This is not just a refinery, but a refinery with a petrochemical component. So somebody has done all the ‘jaki work’ for us, and we are taking a stake in it,” the GMD said.

Kyari further stated that the decision to have a stake in the refinery was at the instance of the NNPC, adding that “Mr Dangote may not be excited with it.”

“I can confirm Mr Chairman, taking stake was at the instance of the NNPC.

“I believe up to this moment, Mr Dangote does not want us to take equity in this plant.

“This is a very informed policy decision that will guarantee security because we will have a seat—we will have right to 20 per cent of the production from this facility,” Kyari added.

Reacting, the Chairman of the Committee, James Faleke said the National Assembly would consider creating a law to protect Nigeria’s assets.

Related

What’s your Reaction?
Like
Like
0
Dislike
Dislike
0
Laugh
Laugh
0
Angry
Angry
0
Sad
Sad
0
Accurate
Accurate
0
0 Shares
Facebook Twitter WhatsApp Linkedin Messenger
×

Share this post!

Facebook Twitter WhatsApp Linkedin Messenger Telegram Tumblr
Tags: Dangote RefineryKyariNNPC

Recent Posts

JUST IN: Tinubu holds first meeting with service chiefs

Tinubu’s meeting with opposition Reps-elect postponed

June 4, 2023
Security aides injured as gunmen attack Kogi governor’s convoy

Security aides injured as gunmen attack Kogi governor’s convoy

June 3, 2023
Zamfara gov under investigation for diverting over N70bn- EFCC

Zamfara governor gives Matawalle ultimatum to return missing bullet proof SUVs

June 3, 2023
Auxiliary: Why police can’t declare me wanted

Auxiliary: Why police can’t declare me wanted

June 3, 2023
Strike: NLC acting Labour Party’s script-  Onanuga

Strike: NLC acting Labour Party’s script- Onanuga

June 3, 2023
PDP crisis: I’ve accepted Atiku but Ayu must go-Wike

Subsidy: Wike backs Tinubu, says moving Nigeria forward requires tough decisions

June 3, 2023
JUST IN: Tinubu names  Gbajabiamila  CoS, Hadejia DCoS, Akume  SGF

Gbajabiamila speaks on appointment as Tinubu’s CoS

June 2, 2023
Tribunal dismisses petition against Makinde’s victory

Tribunal dismisses petition against Makinde’s victory

June 2, 2023
Next Post
[VIDEO]Insecurity: Benue governor  accuses Buhari of supporting Fulani to ruin Nigeria

Ortom using language reminiscent of Rwandan genocide to stir up hatred,cause deaths of Nigerians-Presidency lambasts Benue gov

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newspeakonline

© 2023 Newspeak & Associates

Navigate Site

  • Breaking News
  • Business
  • Entertainment
  • Interview
  • Newpeak Magazine
  • Newspeak Exclusives
  • Politics

Follow Us

No Result
View All Result
  • Home
  • Latest News
  • Politics
  • Business
  • Entertainment
  • Technology
  • World
  • Opinion
  • Interview
  • Newspeak Exclusives

© 2023 Newspeak & Associates

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Newspeak We would like to show you notifications for the latest news and updates.
Dismiss
Allow Notifications