New Telegraph

February 24, 2024

FEC’s approval of NNPC’s 20% acquisition in Dangote refinery lauded

Some economists and oil and gas expert have backed the Federal Executive Council’s (FEC) approval of the acquisition of 20 per cent minority stakes by the Nigerian National Petroleum Corporation (NNPC) in the Dangote Petroleum and Petrochemical Refinery. They made their views known in separate interviews with the News Agency of Nigeria (NAN) on Thursday in Lagos. Reacting to the development, Prof. Chris Onalo, Registrar and Chief Executive Officer, Institute of Credit Administration, said oil and gas remained the major source of revenue for the government which requires massive investment in the sector.

Onalo said the Dangote Group had taken the bull by the horns to make a huge investment that was needed to jumpstart the industry and therefore needed the support of all and sundry including the government. He said the investment from the NNPC was to support the billions already committed by Dangote Group in the world largest single train refinery. “The refinery is an expression of massive confidence in the oil and gas economy of this country. “It shows that the sector can take Nigeria out of economic woes.

I think it is a welcome development and those of us who are in the public domain can’t wait too long to see that happening. “So, I will say kudos to the Dangote Group for its investment drive across the economy of this country,” Onalo said. Also, Mr Muda Yusuf, an economist and immediate- past Director General of the Lagos Chamber of Commerce and Industry (LCCI), said the Dangote Refinery was of strategic national importance. “My views have always been that even though this is a private sector project, it makes both commercial and nationalistic sense for NNPC to express a interest in it.

“This project has a good prospect to put an end to fuel importation and the associated leakages of public funds while also preserving our foreign exchange reserves,” Yusuf said. He said the refinery would also stimulate the economy in areas such as job creation, agriculture and exportation of petrochemicals to other countries.

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