Dangote Group, owners of Dangote Refinery, and the Nigerian National Petroleum Company Limited, NNPCL, have clashed over a $1 billion crude oil-backed loan.

Recall that barely 24 hours ago, in a statement credited to NNPCL spokesperson Olufemi Soneye, the state-owned oil firm said it secured a $1 billion loan backed by crude to support the Dangote Refinery during liquidity challenges.

However, Dangote Group spokesperson, Anthony Chijiena, has described NNPCL’s claim as ‘misinformation’.

The company clarified that the $1 billion crude backed loan is about five percent of the total investment that went into building the 650,000 barrels per day refinery.

According to him, it is inaccurate to say NNPCL facilitated $1 billion for Dangote Refinery amid liquidity challenges.

Chijiena explained that NNPCL had proposed a 20 percent stake investment valued at $2.76 billion in the Dangote Refinery, but that didn’t materialise.

He noted that NNPCL was able to invest $1 billion, which amounts to 7.24 percent equity value.

“Our decision to enter into a partnership with NNPCL was based on recognition of their strategic position in the industry as the largest offtaker of Nigerian crude and, at the time, the sole supplier of gasoline into Nigeria.

“We agreed on the sale of a 20 percent stake at a value of $2.76 billion. Of this, we agreed that they will only pay $1 billion while the balance will be recovered over a period of 5 years through deductions on crude oil that they supply to us and from dividends due to them.

“If we were struggling with liquidity challenges, we wouldn’t have given them such generous payment terms.

“As of 2021, when the agreement was signed, the refinery was at the pre-commission stage. In addition, if we were struggling with liquidity issues, this agreement would have been cash-based rather than credit-driven.

“Unfortunately, NNPCL was later unable to supply the agreed 300 thousand barrels a day of crude, given that they had committed a greater part of their crude cargoes to financiers with the expectation of higher production, which they were unable to achieve.

“We subsequently gave them a 12-month period for them to pay cash for the balance of their equity given their
inability to supply the agreed crude oil volume.

“NNPCL failed to meet this deadline, which expired on June 30th, 2024. As a result, their equity share was revised down to 7.24 percent. These events have been widely reported by both parties.

“It is, therefore, inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges.

“Like all business partners, NNPCL invested $1 billion in the refinery to acquire an ownership stake of 7.24 percent. That is beneficial to its interests,” the Dangote Group statement said.

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The Board of Directors of Nigerian Breweries Plc, Nigeria’s foremost brewing company, has announced the appointment of Juliet Anammah as the substantive chairman.

Her appointment becomes effective January 1, 2025. She succeeds Sijbe “Siep” Hiemstra, who has been acting as the board chairman in an interim capacity since the start of the year.

According to a statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, her appointment was announced after the Board of Directors meeting held on Thursday, December 12, 2024.

Prior to her appointment as the Chair of the Board, she was the Chair of the Governance and Ethics Committee of the company. She joined the Board effective January 1, 2022. She brings three decades of professional experience in Consulting, Consumer Goods, Sales, Marketing, e-commerce, and Sustainability to the board.

Until this appointment, she was the immediate past Chair and Chief Group Sustainability Officer of Jumia Nigeria, having previously held the role of Chief Executive Officer with Jumia. She had also served as the Managing Director, Accenture LLC in charge of the firm’s Consumer Goods Practice, Retail, and Transportation practice in West Africa. She has also served on various boards of local and international organisations, including Flour Mills of Nigeria Plc.
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Following this appointmentwhich takes effect January 1, 2025, the board will now be composed of Mrs. J. Anammah – Chair; H. Essaadi (Dutch) – Managing Director/Chief Executive; Mrs. A.O. Aroyewun; S. Hiemstra (Dutch); MFR; Mrs. S. Ojekwe-Onyejeli; Mrs. I.M. Omoigui Okauru, J.A.A. Overmars (Dutch); R. Pirmez (Belgian); I.A. Puri; B.A. Wessels Boer (Dutch).

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