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Business News of Tuesday, 8 June 2021

Source: www.legit.ng

NNPC wants $2.5 billion to buy stake in Aliko Dangote's refinery

Aliko Dangote, founder of Dangote Group Aliko Dangote, founder of Dangote Group

- The Nigerian National Petroleum Corporation is planning on securing $2.5 billion from the African Export-Import Bank to buy a stake in the Dangote refinery

- The government-owned company said it wants to become a minority shareholder in the oil firm by purchasing a 20% stake in the largest refinery in Africa

- There are about six other refineries that NNPC said it wants to purchase a stake in as well in line with a new government policy on oil refiner

About $2.5 billion will be borrowed by the Nigerian National Petroleum Corporation (NNPC) to finance its quest to acquire a minority stake in Dangote Refinery set for 2022.

Two weeks ago, the government-owned oil company had made its intention known to be a stakeholder in the refinery being built by Africa's richest man.

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NNPC said it wants a 20 per cent stake in Dangote Refinery and has begun negotiations with representatives of the company - that talk seems to have warranted a need for NNPC to raise $2.5 billion, according to Daily Independent.

NNPC has reportedly approached investor, African Export-Import Bank (Afreximbank) for the funds - This is $1 billion more than the $1.5 billion loans approved by President Muhammadu Buhari for the rehabilitation of the Port Harcourt refinery.

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