Aliko Dangote, Africa’s richest individual, says the Nigerian Nationwide Petroleum Firm’s (NNPC) resolution to cut back its stake within the Dangote Petroleum Refinery to 7.2 p.c is a giant mistake.
Dangote spoke throughout an interview with Bloomberg TV on Monday.
In September 2021, NNPC acquired a 20 p.c curiosity in Dangote refinery for $2.76 billion.
Nevertheless, on July 14, Dangote stated the nationwide oil firm now owns 7.2 p.c stake within the refinery.
Talking on the scenario, Dangote stated his refinery gave NNPC deal so it’s complicated why the nationwide oil firm diminished its stake.
“We stated, okay, effective, we structured an settlement. The primary settlement was that they had been going to pay us $1 billion,” he stated.
“The deal was about $2.79 billion. After which the stability of the cash, $1 billion, which they paid us over a yr and a half in the past, after which the stability of the cash was break up into two.
“One portion was that each crude they provide to us, 300,000 barrels per day, we’ll deduct $2 after which as much as the time they end paying that, one third. The opposite one-third will come out of their very own revenue. So, why NNPC opted out is somewhat bit complicated.”
Dangote stated the NNPC needed the settlement to be restructured in order that they might pay money in change for the stake.
“So, we stated, okay, effective. We signed one other settlement, cancelling the opposite one. The brand new settlement that we signed was for them to pay us after one yr, with no curiosity. After one yr, they’ll pay us the stability of $1.8 billion,” he stated.
“The month for them to pay was June. And by June, they got here again to us and stated, no, they’ve modified their minds and so they need to stay at 7.2 per cent.
“So, okay, effective. So, we left it and we now personal the remainder of the shares, they personal 7.2 per cent. And that’s what it’s. I believe they made a giant mistake.”
Dangote added that there isn’t any longer any kind of negotiation between each events, including that the settlement is “completed, useless, and accomplished”.
‘DANGOTE REFINERY’S PETROL 15% CHEAPER THAN NNPC’S IMPORTED PRODUCT’
Dangote stated the premium motor spirit (PMS), also called petrol, bought by the Dangote refinery to NNPC was 15 p.c cheaper than the imported product.
On September 15, the NNPC commenced petrol lifting on the refinery’s gantry after a protracted interval of worth negotiations.
The event adopted the deployment of a fleet of NNPC vans to the refinery on September 14.
On the shut of loading, the NNPC had stated it purchased petrol from Dangote refinery at N898 per litre.
Nevertheless, the Dangote refinery countered the declare, describing it as “each deceptive and mischievous”.
Talking throughout the interview, Dangote stated the backwards and forwards between the refinery and the NNPC “wasn’t actually a disagreement, per se”.
Additionally, the billionaire stated on the time NNPC bought PMS from the refinery, the nationwide oil firm additionally imported petrol.
“NNPC purchased from us on the fifteenth of September on the worldwide worth, in addition they imported about 800,000 metric tons of gasoline,” he stated.
“So the one which they purchased from us truly is cheaper than the one they’re importing.”
He stated the introduced worth was not “actually the actual worth”.
“What they introduced was seemingly what it value them together with earnings, and no matter, of which they’ve by no means added revenue to their value earlier than,” Dangote stated.
“After which, the opposite one is what they imported however the individuals don’t know the way a lot they spend on importing. However their imported one was about 15 to twenty p.c dearer than ours.
“What they first do is to promote at a basket worth or In the event that they need to take away subsidy, they will announce that they’ve eliminated subsidy.”
Dangote stated everyone would regulate to the scenario.
