…To acquire 20 percent stake in Dangote Refinery
The Nigerian National Petroleum Corporation, (NNPC) has said that the pump price of fuel will not be increased in the next two months as engagement with the Organised Labour has not been concluded.
The Managing Director of the Corporation, Mele Kyari, who spoke in a television interview disclosed that while the subsidy regime wasn’t sustainable, President Muhammadu Buhari was not also interested in taking the product out of the reach of Nigerians.
He added that the president had directed that current volumes which are unaccounted for must be contained to bring down spending on subsidy.
He explained that while there’s an expectation in the Appropriation Act that NNPC will make a monthly remittance of at least N120 billion, only one leg of the NNPC’s funding of the Federation Account has been affected by its non-remittance of funds, like royalties and taxes are still being generated.
He stated that discussions were being rounded off on the Petroleum Industry Bill, (PIB), to see that the passage of the legislation is done within the next two weeks.
He revealed that the NNPC intends to borrow $3.8 billion from financial institutions to actualise its agenda of acquiring a 20 percent stake in Dangote Refinery.
According to him, some financial institutions had already agreed to fund the acquisition, while the debts would be paid back from the NNPC’s earnings from dividends and profits accruing from its investment in the fuel plant.
He clarified that there are no underhand dealings concerning the extant transaction, as the federal government’s presence on the board of the Dangote Refinery will not only secure its energy needs, but give it a strong voice in the running of the asset to guarantee the country’s security.
