- The NNPC has said its plan to purchase equity in the Dangote refinery is to ensure it has a say in the running of the multi-billion dollar company
- Mele Kyari, the managing director of the national oil company, added that the move to have a stake in the refinery is also profit-driven
- The NNPC further explained the equity will be purchased through borrowed funds, not the government's revenue
Mele Kyari, the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), has explained why the national oil company is purchasing a stake in the Dangote oil refinery.
The national oil company had in May announced its plans to acquire a 20 per cent equity stake in the private refinery led by billionaire business mogul, Aliko Dangote.
Appearing as a guest on Channels TV on Tuesday, June 29, Kyari said:
“There is no resource-dependent country that will watch a business of this scale, which borders on energy security and has implications for fiscal security of the country, and you don’t have a say."
The NNPC argued that the decision to purchase a stake was also driven by the profit potential of the refinery business.
He also explained that the NNPC will not use "government money" to buy the stake, stating that it will be financed through borrowing.
The NNPC chief further explained that being the national oil company, the NNPC has the responsibility to guarantee energy security for the country, Nairametrics also reported.
He added that it is important for the NNPC to have a say in the refinery company and the only way to make that happen is to have a seat on the company's board.
No petrol price increase in July
Meanwhile, Kyari has also said the official price of a litre of Premium Motor Spirit (PMS), otherwise known as petrol, will remain N162 in July.
The NNPC boss said engagements were still ongoing with the Organised Labour on the appropriate price of petrol.
He gave assurance that Nigerians would continue to buy petrol at N162 per litre until the conclusion of the engagement with Labour.