Afrexim Bank offers NNPC $1bn for Dangote refinery equity

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The Nigerian National Petroleum Corporation, NNPC, is looking in the direction of Afrexim Bank to borrow $1billion for the acquisition of 20% equity in Dangote Refinery.

Its Group Managing Director, Malam Mele Kyari made this disclosure in an interview with Arise TV on Wednesday. The NNPC intends to buy 20% stake in the refinery estimated to worth is $19billion.

He had also noted that NNPC had is already in engagement with banks to lend it the fund for the 20 per cent equity, adding that the fund will not come from the Federal Government.

He did not disclose the other banks that are lending NNPC the balance of the 20 per cent required for the shares since 20 per cent of $19billion is $3.9billion.

Kyari however explained that NNPC has decided to buy equities in Nigerian petroleum refineries that produce over 50,000 barrel per day to guarantee energy security.

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According to him, the Corporation will still get the consent of the Federal Executive Council which is disposed to a lesser equity stake for the state agency.

But Kyari insists NNPC  can repay the loan in five years. “We have seen you can cash out your investment in five years,” he said.