Olufemi Soneye, the spokesperson for Nigerian National Petroleum Company Limited, has revealed that the state-owned energy firm has cut its interest in the Dangote refinery in order to invest in compressed natural gas.
Soneye said that the NNPC limited its stake to 7.2% rather than 20% in the project to develop CNG stations around the nation.
He made this statement when appearing on Berekete Family Radio, as seen in a video obtained by our journalist on Monday.
Soneye was summoned to testify over charges that the NNPC was working with the Nigerian Midstream and Downstream Regulatory Commission to destroy the Dangote refinery.
He denied suggestions that the NNPC would harm a company in which it held a 7.2% share.
He stated that the NNPC recognised CNG as a more inexpensive energy source for Nigerians, particularly during the period of energy transition.
He further stated that Nigerians might fuel their automobiles with CNG for N10,000 instead of petrol.
“We reduced our interest in the Dangote refinery to invest in CNG. We discovered that CNG is incredibly inexpensive, and people all over the world are investing in clean, cheaper alternative energy.
“That is why the NNPC is developing CNG stations all over the place. We understand that with N10,000, Nigerians may fill their cars and drive them for two weeks. We discovered that petrol is cheaper in Nigeria; why don’t we invest in it? An NNPC official stated.
On the sabotage allegations, Soneye stated, “We want all Nigerians to know that the NNPCL has no issue with the Dangote Refinery. We are one of the Dangote refinery’s owners, and we do not want it to fail.
“We invested billions of naira into the Dangote refinery. As of today, we have a 7.2 per cent stake in the refinery. So, why would we want to sabotage such a company?”
He maintained that the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Chief Executive, Farouk Ahmed, was speaking in his capacity as a regulator in charge of all operators in the midstream and downstream, including the NNPC.
“Mr Farouk Ahmed is the head of Nigeria’s mainstream and downstream petroleum regulatory authorities. They have power over all refineries. Anything that has to do with the distribution of petrol, they are in charge. In fact, they are superior to the NNPC in that sector. We don’t have anything to do with them,” Soneye posited.
In 2021, the NNPC acquired a 7.25 per cent stake in the refinery for $1.0bn, with an option to purchase the remaining 12.75 per cent stake by June 2024. But the national oil firm has since reneged on its decision.
The President of the Dangote Group, Alhaji Aliko Dangote, disclosed in July that the NNPC had only a 7.2 per cent stake in the refinery and not 20 per cent.
“The agreement was actually 20 per cent which we had with NNPC, and they did not pay the balance of the money up until last year; then we gave them another extension up until June (2024), and they said that they would remain where they had already paid, which is 7.2 per cent. So NNPC owns only 7.2 per cent, not 20 per cent.” Dangote stated.
Meanwhile, a former Minister of Education, Oby Ezekwesili, called for an independent audit to know why the NNPC capped its investment in the Dangote refinery at 7.2 per cent instead of 20 per cent.
“Did the Nigerian government not tell us it borrowed $3.3bn from Afrieximbank to take a stake in the Dangote refinery?” Ezekwesili asked.
She called on President Bola Tinubu to immediately launch an independent audit of the Dangote refinery-NNPC transaction to offer the public the true state of play.
The Dangote refinery was planning to sell the remaining NNPC 12.7 per cent stake this year for loan servicing, Fitch Ratings, a credit rating agency, said recently.