(Ecofin Agency) - Nigeria’s Federal Executive Council (FEC) yesterday approved the acquisition of 20% equity stakes in Dangote Refinery – an integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria - by the Nigerian National Petroleum Corporation (NNPC) for a cash consideration of $2.76 billion.

The NNPC had earlier announced in May 2021 its intention to acquire an equity stake in Aliko Dangote’s refinery, as well as in five other refineries that are in the development phase, to promote “national energy security”. Nigeria has four refineries - located in Port Harcourt, Kaduna, and Warri- with a combined installed capacity of 445,000 barrels per day compared to Dangote Petroleum Refinery, a multi-billion-dollar project with a capacity of 650,000 barrels per day.

Speaking in line with safeguarding the country's energy security, the Managing Director of the NNPC, Mele Kyari said: “There is no resource-dependent country that will watch a business of this scale, which borders on energy security and has implications for fiscal security of the country, and you don’t have a say.’’

As an objective to grow its domestic refining capacity and improve petroleum products supply from local refineries, the Nigerian Government in March 2021 approved a $1.5 billion revamp of two NNPC-owned facilities in Port Harcourt that have the capacity to refine 210,000 barrels of crude per day.

In the same light, the FEC in its meeting presided over by Vice President Yemi Osinbajo in Abuja yesterday approved contracts for the rehabilitation of the Warri and Kaduna refineries.

“The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of 1.5 billion dollars– 897.67 million dollars for Warri Refinery and 586.9 million dollars for Kaduna Refinery,” said Timipre Sylva, Minister of State for Petroleum Resources.

Solange che