The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari has given an explanation why it decided to buy 20% stake in Dangote Refinery.
Kyari told the House Committee on Finance that taking a seat on the board of Dangote Refinery would guarantee oil security for Nigerians.
Mr Kyari said the government acquired the stake to ensure that the company buys crude oil from Nigeria, claiming that the owner of Dangote Refinery was against the idea of buying 20% stake in his refinery.
He noted that no country in the world would allow such a company to exist without taking a seat on the board of the company.
The decision of the NNPC to borrow money to acquire stakes in the company generated outrage on social media as Nigerians faulted the move.
The GMD, while appearing before the House Committee on Finance on Wednesday, said the move would guarantee oil security for Nigerians.
“I can confirm Mr Chairman, taking stake was at the instance of the NNPC, I believe up to this moment, Mr Dangote does not want us to take equity in this plant. This is a very unformed policy decision that fuel will guarantee security because we will have a seat—we will have a right to 20% of the production from this facility.
“As we speak today, we don’t have any strategic storage or arrangement. So no county will allow any venture of this nature to exist without having a sit on its board.”
He added that the refinery has no obligation to buy crude oil from Nigeria because it is located in the free trade zone.
The Chairman of the committee, James Faleke responded that the lawmakers will be forced to make laws compelling Mr Dangote to buy from Nigeria.
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