Strong indications have emerged suggesting that the Nigerian National Petroleum Corporation (NNPC) is planning to borrow $3.8 billion to actualise its agenda of acquiring a 20 per cent stake in Dangote Refinery.
NNPC Group Managing Director, Mallam Mele Kyari, however hinted that the money would be borrowed from financial institutions. He said some financial institutions had already agreed to fund the acquisition, while the debts would be paid back from the NNPC’s earnings from dividends and profits accruing from its investment in the fuel plant. The 650,000 barrels per day refinery, located in Lagos State, which Kyari said had been tentatively valued at about $19 billion, is expected to come on stream in 2022 and will produce 50 million litres of petrol per day. Kyari added that the NNPC has a responsibility to ensure a constant flow of fuel, and as a policy, it will continue to acquire stakes in any refinery in excess of 50,000 barrels per day. Kyari also reiterated that work had begun on the Port Harcourt refinery rehabilitation, while the Engineering, Procurement and Construction (EPC) contracts for Warri and Kaduna will be awarded in July.
