Controversy as NNPCL 2022 audited report shows it paid 20% shares in Dangote Refinery

 

Maureen Aguta

 

A report by Afrisagacity shared on X handle analysed that under President Muhammadu Buhari’s regime, the Nigerian National Petroleum Company Limited (NNPCL) committed to invest $2.7 billion and buy 20 per cent shares in the Dangote Refinery.

According to the report, in January, the NNPCL, after intense pressure, released its Audited Financial Report for 2022. In the report, they stated that they purchased 20 per cent shares in the Dangote Refinery for $2.7 billion.

They claimed to have obtained $1.036 billion (as part of the funding) from Lekki Refinery Funding Limited. $1 billion was paid to Dangote Refinery – which is about 37 per cent of $2.7 billion they claimed to have invested.

Of course, the remaining amount of $36 million was for just transaction costs.

Tinubu took over from Buhari and, in December, he set up a new NNPCL Board, where he made his longtime friend and ally, Pius Akinyelure the NNPCL Board Chairman and reappointed Malam Mele Kyari as NNPCL Group CEO.

In a sudden turn, the NNPCL that had committed to buy 20 per cent shares, backed down. Dangote had given them an extension period (till June) to complete the $2.7 billion for the shares. But they couldn’t.

Meanwhile, the public still believed that they had a 20 per cent shares in the Dangote Refinery – not until Sunday, when Dangote himself, revealed that the NNPCL had invested only 7.2 per cent.

Shortly after Dangote broke the news, the NNPCL rushed to react. In its defence, it said “NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.”

“One, what exactly are the NNPCL “strategic goals?” They say it’s “to ensure access to affordable, reliable, sustainable and modern energy for all”.

“How and when did the NNPCL 20 per cent equity investment in the Dangote Refinery go against its “strategic goals” as highlighted above?

“Two, in its statement, the NNPCL validated what Dangote said that they invested only 7 per cent of the $2.7 billion they initially committed to pay.

“This sharply contrasts and invalidates their claim of paying $1 billion to Dangote Refinery (for the shares) in 2022 – which is about 37 per cent.

“So, if the NNPCL confirmed that they had paid $1 billion to Dangote Refinery – which is about 37 per cent – how did they come about the 7 per cent?

“Also, where is the balance? Did Dangote Refinery refund it?

“Three, why exactly did the NNPCL back down on their initial commitment of investing 20 per cent on the Dangote Refinery shares?

“Is it truly true that they realigned their “investment portfolio, according to their strategic goals” or is it a grand plan that’s wrapped in a scam deal?” the report queried.