Business
NNPC to acquire stake in BUA refinery, four others amid talks with Dangote
Dangote refinery is not the only refiner the Nigerian National Petroleum Corporation (NNPC) plans to acquire a minority stake in, as its incoming rival, BUA will also be expected to part with some shares.
The government-owned oil company will acquire a stake in BUA refinery in line with a new policy issued by President Muhammadu Buhari-led administration.
The government policy directs NNPC to acquire stake in any privately-owned refinery that has an output capacity above 50,000 barrels per day (bpd) – Ripples Nigeria gathered that both Dangote and BUA refinery have a capacity that exceeds the bpd range.
Dangote refinery has 650,000 barrels-per-day and BUA Group announced that its refiner, which is still in development phase will have 200,000 barrels per day capacity. Aside from these companies, there are still four refineries, also still in development phase, being eyed by NNPC.
READ ALSO: NNPC enters talks with Dangote for 20% refinery stake
The oil importer said the government policy directs “the mandatory participation of the Corporation in any privately-owned refinery that exceeds 50,000 barrels per day capacity.”
It added that, “The new vision is to grow domestic refining capacity, improve petroleum products supply from our local refineries and become a net exporter of petroleum products.” NAN quoted NNPC.
The NNPC didn’t state how the stake acquisition will be financed, but it plans to be a stakeholder. The decision has come as a shock, as the government corporation is also planning to revamp it’s own refinery.
President Buhari had approved $1.5 billion for the rehabilitation of Nigeria’s refinery which NNPC controls. The government refinery has been in a deplorable state for years.
By Fakoyejo Ayodeji)
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...