Africa’s richest man and CEO of Dangote refinery, Aliko Dangote, has reacted to the Nigerian National Petroleum Corporation’s (NNPC) claim that it supported the refinery with $1 billion amid liquidity challenges, describing it as a “bunch of lies.”
Dangote, speaking in a documentary aired by Arise TV on Monday, labeled NNPC’s statement “tricky and nasty.”
The business magnate dismissed NNPC’s $1 billion equity investment in the refinery, valued at $20 billion, as insignificant, saying it amounted to a drop in the ocean.
NNPC’s Head of Corporate Communications, Olufemi Soneye, had earlier stated that the national oil company played a pivotal role in supporting the refinery through a $1 billion loan during its supposed liquidity crisis.
“A strategic decision to secure a $1bn loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery,” Soneye said in a statement.
However, Anthony Chiejina, spokesperson for Dangote refinery, dismissed this claim, calling it misleading.
“If we were struggling with liquidity challenges, we wouldn’t have given them such generous payment terms. As of 2021, when the agreement was signed, the refinery was at the pre-commission stage. In addition, if we were struggling with a liquidity issue, this agreement would have been cash-based rather than credit-driven,” Chiejina clarified.
Reacting further, Dangote reaffirmed Chiejina’s stance, branding the NNPC’s claim as false.
“I think it’s very tricky and nasty for the person, whoever came out with that nonsense, to say that NNPC gave us $1 billion to assist us in our liquidity crisis. That’s really done in very bad taste. I think if they come back with anything, we will reply to them. It’s totally not true. These are just a bunch of lies,” Dangote said.
The disagreement between Dangote refinery and NNPC has persisted since the private refinery began operations, with both parties exchanging subtle jabs.
Dangote refinery, which is expected to operate at full capacity of 650,000 barrels per day next year, is poised to meet the country’s petrol demand.
This development is expected to disrupt the downstream sector significantly, effectively ending petrol importation into Nigeria.
Despite being an oil-rich country, Nigeria has relied solely on petrol imports until the emergence of the mega refinery.
NNPC, which has traditionally dominated the downstream supply chain, has also initiated operations at its own Port Harcourt refinery, setting the stage for a competitive market.
The competition between Dangote Refinery and NNPC is likely to shape the energy security of Africa’s most populous nation in the months and years ahead.
