Nigeria’ll borrow to buy 20% stake in Dangote refinery —NNPC boss

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC) Mele Kyari, said the government corporation will borrow to fund its stake acquisition in Dangote Refinery.

Kyari said the federation account won’t be used to finance the deal with Aliko Dangote’s company as NNPC will approach commercial banks for financial backing.

He made this known while speaking during an interview with Channels TV.

There have been concerns as to which source the NNPC will draw funds from considering the country’s revenue problem.

Ripples Nigeria had previously reported that the government’s oil company is seeking $2.5 billion, and has approached African Export-Import Bank (Afreximbank) to finance the stake acquisition.

While Kyari didn’t specify the actual cost of the 20 percent stake the corporation wants in Dangote Refinery during the recent interview, he estimated the valuation, which was made by banks, to be around $19 billion.

But he confirmed the deal hasn’t been concluded as there’s an ongoing engagement around governance which includes getting approval from the Federal Executive Council.

He also dispelled reports that the NNPC hastened the deal with Dangote Refinery, stating that negotiations had began since December of last year.