The Nigerian National Petroleum Company (NNPC) Limited has announced the repayment of 60% of the loan secured to finance its 20% stake acquisition in Dangote Petroleum Refinery and Petrochemicals (DPRP), amounting to $1.03 billion.
According to audited financial statements of NNPC for the fiscal year ending December 31, 2023, the company has paid $625 million towards the loan. Led by an interest rate of 3-month libor plus 6.125%, this loan was achieved by means of a forward sale contract with Lekki Refinery Funding Limited.
NNPC initially bought into its shareholding in September 2021 for $2.76 billion, with $1 billion remitted to Dangote refinery. However, it has since repositioned its investment, moving it from NNPC Greenfield Limited to NNPC Downstream Investment Service (NDIS).
A few months ago, Aliko Dangote, founder of Dangote refinery, announced that due to non-payment of the balance due upon acquisition, NNPC’s shareholding was cut down to 7.2%. Later on, NNPC explained that this change was done strategically to make room for funding projects based on compressed natural gas (CNG).
Repayment of this loan thus confirms NNPC’s firm commitment towards the fulfillment of its financial obligations. The corporation remains focused on finding ways for growth and further diversification across various areas within the energy sector.
