LCCI Backs NNPC Proposal To Acquire Stake In Dangote Refinery

LCCI Backs NNPC Proposal To Acquire Stake In Dangote Refinery

Yahaya Umar

The Lagos Chamber of Commerce and Industry (LCCI) has backed the proposal by the Nigerian National Petroleum Corporation (NNPC) to acquire a 20 per cent stake in the Dangote refinery.

The Director-General, LCCI, Mr Muda Yusuf, in a statement issued on Thursday in Lagos said the move was a step in the right direction.

The NNPC had expressed interest in purchasing a 20 per cent minority equity stake in the 650,000BPD Dangote refinery.

The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, made the announcement at the just-concluded Nigeria Oil and Gas Opportunity Fair.

Yakubu said discussions were already going on with the Dangote Group for the acquisition of the stake which would further ensure undisrupted product supply to Nigerians.

The LCCI DG said the reality was that the Dangote refinery was a project of significant and strategic national importance, even though it was promoted by the private sector.

“Taking a stake in the project also makes a great deal of business sense, especially given how far the project execution has gone and our heavy dependence on importation of petroleum products.

“It also makes both commercial and nationalistic sense for the NNPC to express a interest in a project that has a good prospect to put an end to fuel importation and the associated leakages of public funds.

“It would also ensure the preservation of our foreign reserves as we currently spend billions of dollars annually on importation of petroleum products.

“This is in addition to the several multiplier effects arising from related spin off industries like petrochemicals, fertiliser plants which resonates well with our aspiration for self-reliance and backward integration.

“The export prospects are also quite bright,” he said.

According to him, another exciting thing about this investment proposition is that the NNPC will be a minority shareholder and will therefore not take responsibility for the management of the refinery.

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