Talks have resumed on the sourcing of $3.9 billion by Nigeria National Petroleum Corporation (NNPC) to acquire 20 percent equity in the $19 billion Dangote Petroleum Refinery.
The discussion is between commercial banks and the state-owned NNPC which has been asking for the fund to invest in the refinery.
NNPC plan to buy equity in the refinery which, will begin production in 2022, broke over two weeks ago, NNPC’s Group Managing Director (GMD), Mr Mele Kyari, said.
But Kyari did not say the net value of 20 percent equity which will make the corporation a member of the board of the refinery.
His words: “On the Dangote Refinery, we are not going to take our (Federal Government) money and buy it (equity).
“ We are going to borrow for the cash flow of this business. We know that this business is viable, it will work and that it will return dividends. It has a cash flow that is sustainable because it is a refinery business.
“In the short term, it will continue to be sustainable. And that is why banks have come up to lend to us so that we can take up equity”.
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