DANGOTE OFFERS TO SELL HIS REFINERY

 Aliko Dangote, Africa's richest person, has expressed willingness to transfer ownership of his $19 billion oil refinery to NNPC Limited, a state-owned energy company, amidst a fresh dispute with a key equity partner and ongoing regulatory issues in Nigeria. 

Aliko Dangote 
(Source: Bloomberg)

The 650,000 barrel-per-day refinery, which began operations last year after a decade-long construction period, aims to reduce Nigeria's dependence on foreign fuel imports and conserve up to 30% of the country's foreign exchange expenditure. Initially estimated to cost around $9 billion, the project's final cost more than doubled to $19 billion.

“Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way,” Mr Dangote said in an exclusive interview on Sunday.

“We have been facing fuel crisis since the 70s. This refinery can help in resolving the problem but it does appear some people are uncomfortable that I am in the picture. So I am ready to let go, let the NNPC buy me out, run the refinery.”

Aliko Dangote's foray into the oil and gas sector, a departure from his successful ventures in Nigeria's cement, salt, and sugar industries, is facing challenges in its initial stages. Despite being set to release its first petrol supply to the Nigerian market in August, the refinery has been operating at only half its capacity since January due to difficulties in securing crude oil from international suppliers. 

These suppliers are either demanding exorbitant premiums or claiming unavailability, hindering the refinery's operations. Furthermore, NNPC, once a key partner, has delivered only 6.9 million barrels of oil to the plant since last year, as of May, according to S&P Global Platts, a supply data tracker.

Source. premiumtimesng.com

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