NNPC seeks $2.5bn loan to fund acquisition in Dangote refinery

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The National Petroleum Corporation (NNPC) has reportedly approached the African Export-Import Bank (Afreximbank) for financial support to acquire a stake in Dangote Refinery.

NNPC is soliciting for $2.5 billion to finance its stake acquisition in Africa’s largest refinery and the world’s largest single-track refinery which is scheduled to commence operation next year.

The corporation had revealed that it was interested in acquiring 20 percent minority stake in the Dangote Refinery, a decision that is part of a larger move to become stakeholder in six other privately-owned refineries.

Negotiation talk with Dangote refinery reportedly compelled the NNPC to enter into a loan discussion with Afreximbank, according to Daily Independent, but it is not clear if NNPC will take same route for other stake acquisition.

Ripples Nigeria had reported two weeks ago that the government-owned oil company plans to become a minority stakeholder in refineries that have an output capacity of over 50,000 barrels per day.

With BUA refinery – which is still in development phase – having production capacity of 200,000 barrels per day, NNPC will have a holding in the company as well.

NNPC was yet to respond to enquiry sent to it as at the time of filing this report.

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