20% Of Dangote’s Refinery To Be Acquired By FG For $2.76bn

August 5, 2021
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Dangote fertilizer
Dangote fertilizer

The Federal Executive Council (FEC) has approved the acquisition of 20% quota minority $2.76bn in the Dangote Petroleum and Petrochemical refinery by the Nigerian National Petroleum Corporation (NNPC).

Minister of State for petroleum, Timipre Sylva disclosed this to journalists after the virtual meeting presided over by Vice-President Yemi Osinbajo at the presidential villa.

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Sylva noted that the acquisition would cost about $2.76billion.

The minister also revealed that FEC also approved contracts for the refineries.

“The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna refineries at the combined total sum of $1.5 billion – $897.67 million for Warri refinery and $586. Nine million for the Kaduna refinery,” Mr Sylva disclosed. “The executive council also approved the acquisition of 20 per cent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of $2.76 billion.”

According to him, the completion of the rehabilitation of the Warri and Kaduna refineries would three phases.

“The first phase is within 21 months; in 23 months, phase two will be completed, and in 33 months, the full rehabilitation will be completed,” he added. “Work has already commenced in Port Harcourt; already the first 15 per cent of the contract sum has been paid to the contractor, and the contractor has fully mobilized to site.”

He said the FEC had discussed the need to give periodic updates on the project and there will bee am inspection in the Portharcourt refinery.

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