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Dangote Rejects NNPC's Stake Increase Offer in Refinery

Punch Newspapers·
Dangote Rejects NNPC's Stake Increase Offer in Refinery

Alhaji Aliko Dangote, the founder of Dangote Group, has declined the Nigerian National Petroleum Corporation's (NNPC) proposal to increase its stake in the Dangote Petroleum Refinery from 7.25% to 25%. During an interview with Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund, Dangote stated that the company intends to go public, providing Nigerians the opportunity to own shares in the refinery.

NNPC currently holds a 7.25% stake, which it acquired in 2021 for $1 billion, with an option to acquire an additional 12.75% by June 2024. Dangote clarified that the NNPC's stake is not 20% as previously believed, and the corporation has not paid the balance owed until last year.

He expressed concerns about civil unrest and government policy inconsistencies as risks to his business. The Dangote refinery is expected to significantly impact Nigeria's oil sector and revenue generation.

Plus234Feed summary based on reporting from Punch Newspapers.

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