The Nigerian National Petroleum Company Limited (NNPCL) has repaid 60% of a $1.036 billion loan taken in September 2021 for acquiring a 20% stake in the Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise (DPRP FZE).
As of December 31, 2023, NNPC has repaid $625 million, leaving an outstanding balance of $424 million. The loan was secured through a forward sale agreement with Lekki Refinery Funding Limited at an interest rate of 3-month LIBOR plus 6.125%.
Following restructuring under the Petroleum Industry Act (PIA), management of this investment shifted to NNPC Downstream Investment Service (NDIS), which also involved changing the payment structure for equity investments.
As of December 31, 2023, NNPC Limited holds a 7.25% interest in DPRP FZE. Aliko Dangote noted that NNPC no longer holds a 20% stake due to unpaid balances.
Femi Soneye, NNPC’s Chief Corporate Communications Officer, stated that the decision to reduce the investment was communicated to Dangote several months ago.
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