Mele Kyari, the Group managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC) has spoken on the reason the NNPC is acquiring a 20% stake in the Dangote Refinery.
According to the GMD, the resolution was engineered by the prospective benefit the business is likely to generate and the relevance of having a decision-making power in a business with this capacity involving energy sector for Nigeria and Africa with huge implications for fiscal security of the country.
The GMD noted that the NNPC is not utilizing government funds in purchasing the stake in the N650,000 barrels per day Refinery anticipated to commence operations in 2022 rather, the funds are borrowed from financial institutions with the expectation that the business will be viable, workable and generate expected cash flow and dividends. This is sequel to the announcement made by the NNPC last month, about plans to acquire a 20% minority equity stake in the Africa’s biggest oil refining facility.
