NNPC Cuts Stake in Dangote Refinery to Focus on CNG Projects

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

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

Femi Soneye, Chief Corporate Communications Officer of NNPC, explained the rationale behind the move. “We realized that CNG is a very affordable energy alternative for Nigerians. For N10,000, Nigerians can fill their cars and use it for two weeks,” he said. “We see that as a better energy alternative.“

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

Aliko Dangote, Chairman of Dangote Group, has confirmed the reduction in NNPC’s stake, emphasizing the company’s commitment to the refinery’s success. “We are part of the owners of Dangote refinery, and we will want it to collapse,” he said, highlighting the importance of continued collaboration between NNPC and the private sector.