- Nigerian National Petroleum Company (NNPC) Limited reduced interest in Dangote refinery to invest in compressed natural gas (CNG)
- NNPC said CNG is a clean and cheaper alternative energy, adding that switching to CNG will save Nigerians money
- NNPC spokesperson Femi Soneye denied any issues with the Dangote refinery, emphasised that NNPC, as a part owner, has no desire for it to collapse
The Nigerian National Petroleum Company (NNPC) Limited has confirmed that it has scaled back its interest in the Dangote Petroleum Refinery from 20% to 7.2%, reallocating resources to invest in compressed natural gas (CNG).
This was disclosed by Femi Soneye, the spokesperson for NNPC, on Monday, August 12 while appearing on the Brekete Family programme.
CNG is cleaner, cheaper, Soneye explained
Aliko Dangote earlier disclosed that NNPC had scaled back its stake in the refinery to 7.2% on July 14. The Nigerian National Petroleum Company acquired a 20% stake in the Dangote refinery for $2.76 billion in September 2021.
Soneye explained “The reason for reducing our stake in Dangote refinery is because we wanted to invest in CNG.
“We observed that CNG is very cheap and all over the world, people are investing in clean and cheaper alternative energy.”
He pointed out that CNG represents a budget-friendly choice for Nigerians, adding, “Switching to CNG will save Nigerians money.”
“That is why the NNPC is building different CNG stations everywhere. We understand that with N10,000, Nigerians can fill their cars and use it for two weeks.
“We realised that gas is cheaper in Nigeria, why don’t we invest in it since this is what people are doing all over the world?”
Soneye denied claims of trouble with Dangote
Recall that the disagreement between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Dangote refinery emerged on July 18, following Authority Chief Executive Officer Farouk Ahmed's claim that local refineries, including the Dangote Petroleum Refinery, were delivering substandard products compared to those imported.
“Dangote refinery and some modular refineries, like Waltersmith refinery and Aradel refinery, they are producing between 650 to 1,200ppm. So, in terms of quality, their product is much more inferior to the imported quality,” Farouk Ahmed stated.
Reacting to this, Dangote said, “We produce the best diesel in Nigeria. It is disheartening that instead of safeguarding the market, the regulator is undermining it. Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.”
Concerning the allegations, Soneye rejected any suggestions of trouble with the Dangote refinery, declaring, “We want to make it clear to all Nigerians that NNPC does not have any issues with the Dangote Refinery.
“We are part of the owners of the Dangote refinery and we don’t want it to collapse.”
He further said, “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?”
NNPC doesn’t have the power to block Dangote refinery, Soneye emphasised
Addressing the disagreement between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Dangote refinery, Soneye stated that the Petroleum Industry Act (PIA) does not empower NNPC to block the Dangote refinery.
He explained that Farouk Ahmed, the chief executive officer of NMDPRA, addresses matters in his official capacity as the regulator for all midstream and downstream operators, including 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 stated.
House of Representatives explains why it dissolved committee on fuel probe
Meanwhile, TheRadar previously reported that the House of Representatives leadership has dissolved the ad-hoc committee investigating both the import of substandard petroleum products into Nigeria and the resurgence of fuel queues.
According to the report, the lower legislative chamber intends to constitute a new committee that will include members with 'industry knowledge, proven competence, and unquestionable integrity.