NNPC cuts stake in Dangote Refinery to focus on CNG projects

The Nigerian National Petroleum Corporation (NNPC) has decided to divest its stake in the Dangote Refinery to focus on Compressed Natural Gas (CNG) projects. The decision comes amid growing global interest in cleaner energy alternatives and is aimed at aligning Nigeria’s energy infrastructure with emerging trends.

Initially held 20% stake in Dangote RefineryNNPC has now reduced its stake to 7.2%, citing the reallocation of funds to CNG initiatives. The change in investment strategy is part of NNPC’s broader plan to promote affordable and environmentally friendly energy solutions for Nigerians.

Femi Soneye, NNPC Corporate Communications Manager, explained the reason behind the move.We recognize that CNG is a very affordable energy alternative for Nigerians. For N10,000, Nigerians can fill up their cars and use them for two weeks.“, he said. “We see it as a better alternative energy source.

The decision has sparked discussions about the future of Nigeria’s energy landscape and the role of public-private partnerships in promoting sustainable development. While some analysts see the move as a positive step towards diversifying the country’s energy portfolio, others have expressed concerns about the implications for the operations of the Dangote Refinery and Nigeria’s refining capacity.

Aliko Dangote, Chairman Dangote Groupconfirmed the reduction of NNPC’s stake, underscoring the company’s commitment to the refinery’s success.We are part of the owners of the Dangote refinery, and we want it to collapse.”, he said, stressing the importance of continued collaboration between the NNPC and the private sector.

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