Mixed reactions trail NNPC plan to acquire stake in Dangote refinery

Financial analysts have expressed divergent views over the proposed plan by the Nigerian National Petroleum Corporation (NNPC) to acquire 20 per cent equity stake in Dangote refinery.

They expressed this in an interview with our reporter in Lagos on Monday.

It was reported that 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.

Dr Uju Ogubunka, a former Executive Secretary, Chartered Institute of Bankers of Nigeria, said the initiative was novel but unnecessary.

“The planned equity is unnecessary because the NNPC has not adequately managed its own assets too well.

“The four refineries under its supervision have not refined at an optimal capacity over a decade,” Ogubunka said.

He noted that most successful acquisitions were perfected by private entity and not state concern.

However, Mr Titus Okurounmu, a former Director, Central Bank of Nigeria, lauded the proposed equity stake acquisition by the NNPC in Dangote refinery.

Okurounmu said the proposal if well implemented and managed could boost government’s revenue.

Okurounmu who described the move as strategic called on the NNPC to be more transparent in its operations.

“The management of the NNPC must be continuously improved upon in order to get the support of Nigerians over its decisions.

“As often times, the state-owned oil corporation is seen as managed poorly due to its antecedents,” he said.