FG approves acquisition of stake in Dangote Refinery for $2.76 billion

The Federal Executive Council (FEC) on Wednesday, approved the acquisition of 20% minority stakes of Dangote Refinery and Petrochemical by the Nigerian National Petroleum Corporation(NNPC) for $2.76 billion.

This follows an earlier announcement by NNPC in May, 2021, that it plans to purchase a stake in Africa’s biggest refinery, Dangote Refinery, to further help ensure an undisrupted supply of petroleum products across the country when the transaction pulls through.

This disclosure was made by the Minister of State for Petroleum Resources, Timipre Sylva, while briefing State House correspondents after the virtual FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, according to NAN.

What the Minister of State for Petroleum Resources is saying

Sylva said that the federal executive council also approved contracts for the rehabilitation of Warri and Kaduna refineries.

He said, “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 dollars–  897. 67 million dollars for Warri Refinery and 586. 9 million dollars for Kaduna Refinery.

“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 dollars.”

Credit: Nairametrics