The Nigerian National Petroleum Company (NNPC) Limited has reduced its stake in the Dangote Petroleum Refinery from 20 percent to 7.2 percent, citing a strategic shift towards investing in Compressed Natural Gas (CNG).

This move was explained by NNPC spokesperson, Femi Soneye, during an appearance on the Brekete Family programme on Monday.

In September 2021, NNPC acquired a 20 percent interest in the Dangote refinery for $2.76 billion. However, on July 14, Aliko Dangote, Africa’s richest person, revealed that NNPC’s stake in the refinery had decreased to 7.2 percent.

Soneye clarified that the decision to reduce NNPC’s stake was driven by the company’s desire to invest in CNG, a cleaner and cheaper alternative energy source gaining popularity globally. “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,” Soneye explained.

He further emphasized the cost-effectiveness of CNG for Nigerians, noting that with an investment in CNG stations across the country, Nigerians could potentially fill their cars for as little as N10,000 and use it for two weeks. “We realized 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 added.

Addressing concerns about potential conflicts with the Dangote refinery, Soneye assured that NNPC has no issues with the refinery and is not collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to undermine it. He highlighted that NNPC remains a part-owner of the refinery and has a vested interest in its success.

“The Petroleum Industry Act (PIA) does not give NNPC the power to stop the Dangote refinery,” Soneye stated. “We invested billions of naira into the Dangote refinery. As of today, we have a 7.2 percent stake in the refinery. So, why would we want to sabotage such a company?” he concluded.