Key Factors
- NNPCL repaid $625 million of its $1.036-billion mortgage for a stake in Dangote Oil Refinery.
- The mortgage reimbursement and administration transition to NNPCL’s Downstream Funding Service adopted organizational restructuring.
- Regardless of decreasing its stake to 7.25 %, NNPCL stays dedicated to its funding in Africa’s largest refinery.
The Nigerian Nationwide Petroleum Firm Restricted (NNPCL) has repaid $625 million of the $1.036 billion it borrowed to purchase a 20-percent stake within the Dangote Oil Refinery.
As of Dec. 31, 2023, a steadiness of $424 million stays. This reimbursement types a key a part of NNPCL’s resolution to determine a presence within the refinery positioned in Lagos’ Lekki Free Zone.
Lekki Refinery Funding Restricted supplied the mortgage with an rate of interest of three-month LIBOR plus 6.125 %. Initially, NNPC Greenfield Restricted managed this funding.
Nevertheless, following the Petroleum Business Act restructuring, NNPCL’s Downstream Funding Service (NDIS) took over administration. This shift modified the fee methodology from a crude oil low cost to direct money funds.
Changes in stake possession and future prospects
Initially proudly owning a 20 % stake, NNPCL now holds solely 7.25 % after failing to satisfy the whole fee schedule. Aliko Dangote, the refinery’s proprietor, identified the decreased stake because of NNPCL’s incomplete funds.
Femi Soneye, NNPC’s chief company communications officer, acknowledged that the workforce had deliberate the discount in stake and knowledgeable Dangote a number of months earlier than.
Regardless of the smaller stake, NNPCL stays dedicated to its funding within the refinery, which might be Africa’s largest and the world’s largest single-train facility with a 650,000 barrels per day capability. This funding goals to spice up Nigeria’s power sector and stabilize the economic system.
