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Your information on $1bn investment misleading, Dangote Refinery replies NNPCL

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Your information on $1bn investment misleading, Dangote Refinery replies NNPCL

The Dangote Petroleum Refinery has addressed what it calls inaccurate and misleading information from the Nigerian National Petroleum Company Limited (NNPCL) regarding the details of a $1bn investment in its operations.

The refinery clarified that the claim misrepresented the facts, potentially misleading stakeholders and the public about the scope and nature of the investment.

In a statement issued on Wednesday by the Group Chief Branding and Communications Officer, Anthony Chiejina, the refinery explained that the $1bn crude-backed loan facilitated by NNPCL represents only five percent of the total investment used to build the 650,000 barrels-per-day refinery.

Earlier, at a stakeholders’ engagement meeting on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, disclosed that the national oil company had secured the $1bn loan, emphasizing that it underscored NNPCL’s commitment to fostering public-private partnerships for economic growth.

However, Dangote Refinery dismissed this narrative, labeling it as “misinformation.” The company stressed that while the crude-backed loan supported the refinery’s operations, it is inaccurate to portray NNPCL as a key facilitator of the refinery’s financing, particularly amid liquidity challenges.

The statement titled, “Addressing NNPCL’s Misinformation”, read, “We have received numerous inquiries from the media and other concerned stakeholders seeking clarification on a recent report attributed to the Nigerian National Petroleum Company Limited that their decision to secure a $1bn loan backed by its crude was instrumental in supporting the Dangote refinery during liquidity challenges.

“We would like to clarify that this is a misrepresentation of the situation as $1bn is just about 5 per cent of the investment that went into building the Dangote Refinery.”

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Chijiena also explained that NNPCL had proposed a 20 per cent stake investment valued at $2.76bn in the Dangote Refinery in 2021, but that didn’t materialise due to the inability of the NNPCL to supply the agreed 300,000 barrels a day of crude.

He also noted that NNPCL was able to invest $1bn, which amounts to a 7.24 per cent equity value.

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

“We agreed on the sale of a 20 per cent stake at a value of $2.76bn. Of this, we agreed that they will only pay $1bn while the balance will be recovered over a period of five 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 300,000 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.”

It added that 12 months of grace was provided for the national oil firm to fulfil its obligations, which were still not met, hence a downgrade of its equity share to 7.5 per cent.

He explained, “We subsequently gave them 12 months 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 per cent. These events have been widely reported by both parties.

“It is, therefore, inaccurate to claim that NNPCL facilitated a $1bn investment amid liquidity challenges. Like all business partners, NNPCL invested, $1bn in the Refinery to acquire an ownership stake of 7.24 per cent stake which is beneficial to its interests.

“NNPCL remains our valued partner in progress, and it is imperative for all stakeholders to adhere to the facts and present the narrative in the correct context, to guide the media in reporting accurately for the benefit of our stakeholders and the public.”

 

Your information on $1bn investment misleading, Dangote Refinery replies NNPCL

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Happening now: Hyundai unveiling of Mufasa and Grand Creta

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Happening now: Hyundai unveiling of Mufasa and Grand Creta (photos)

Two latest models of Hyundai auto brands are currently being officially rolled out in Lagos. The new vehicles are Mufasa and Grand Creta.

The unveiling is taking place at the Hyundai showroom on Akin Adesola Street Victoria Island, Lagos.

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No 5% Petrol Tax Plan, Oyedele Says, Amid Public Concerns

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No 5% Petrol Tax Plan, Oyedele Says, Amid Public Concerns

 

The Federal Government has no plan to introduce a new tax on petrol, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said, dismissing reports that the administration of President Bola Tinubu intends to impose a five per cent levy on petroleum products.

Oyedele clarified the issue in a statement posted on his X account on Tuesday, insisting that a fuel tax was not being considered by the government.

“In my interview with ARISE News, I was clear: a fuel tax is not on the table,” he said.

His statement follows reports linking him to the proposed five per cent tax, which sparked concerns about a possible increase in the cost of petrol amid Nigeria’s persistent cost-of-living crisis.

Petrol prices have remained a major driver of transportation and distribution costs since the removal of the fuel subsidy, contributing to higher prices of food and other essential goods and services.

The prospect of an additional levy had raised fears that households and businesses could face further financial pressure.

However, Oyedele’s clarification indicates that the Federal Government is not currently considering the proposed fuel tax, amid broader efforts to reform Nigeria’s tax system and strengthen public finances.

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Beyond the Showroom: Why After-Sales Service Will Define Auto Industry Winners

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Beyond the Showroom: Why After-Sales Service Will Define Auto Industry Winners

Nigeria’s automotive industry must look beyond vehicle prices, specifications and flashy new models if it hopes to win lasting customer confidence. The real test of competition increasingly lies in what happens after the sale — when a vehicle needs servicing, spare parts, repairs or warranty support.

A car purchase is not a one-off transaction. It marks the beginning of an ownership journey that could last several years, during which the quality of after-sales service can determine whether a customer remains loyal to a brand or regrets the decision to buy it.

When customers struggle to obtain genuine parts, secure timely repairs or get clear answers to warranty claims, their frustration can damage confidence not only in a dealer but also in the manufacturer and the wider automotive market.

After-sales service must therefore move from the background to the centre of automotive competition in Nigeria.

 

Promises must translate into performance

Effective customer care starts with clear, credible commitments. Buyers deserve to understand warranty coverage, servicing schedules, access to genuine parts, repair procedures and the support available when problems arise.

But promises alone are not enough. A warranty has limited value if customers cannot access a competent service centre. A roadside assistance number means little without an effective response system. And a repair-time guarantee is only as good as the technicians, parts and processes supporting it.

Automotive distributors and dealers must ensure that their marketing promises are matched by the operational capacity to deliver.

Buyers, on their part, should ask questions before committing their money, examine warranty conditions and establish what support they can realistically expect throughout the vehicle’s lifespan.

 

Competing on ownership experience

Nigeria’s automotive market would benefit enormously if brands competed not only on the vehicles they sell but also on the quality of ownership experience they provide.

Such competition could drive improvements in service delivery, warranty transparency, spare-parts availability, technical training, repair turnaround and customer communication.

Some players are already putting more structured after-sales propositions before buyers. Carloha’s CarlohaCare 6-6-7 programme, for instance, combines a six-year warranty, six years of free servicing and a seven-day repair promise, subject to applicable terms and conditions. Its CarlohaCare Rescue service extends the proposition to assistance beyond the workshop.

These offerings illustrate how clearly defined service commitments can become part of a vehicle’s value proposition, rather than an afterthought.

However, the objective should not be to crown a permanent winner or single out one company as the industry benchmark. Every provider must demonstrate that its commitments are practical, transparent and consistently delivered.

The wider industry should embrace continuous improvement, with customers ultimately judging brands by their real-world experiences.

 

Automotive journalism must ask tougher questions

Automotive journalism has a critical role in broadening the conversation.

Coverage of the sector often focuses on vehicle launches, new technologies, prices, specifications and expansion plans. These remain important, but consumers also need independent reporting on the realities of vehicle ownership.

Journalists can examine warranty conditions, investigate spare-parts availability, interview service managers and fleet operators, document consumer experiences and assess how effectively companies resolve complaints.

They should celebrate genuine improvements while holding businesses accountable when their public commitments fall short.

The Nigerian Automotive Journalists Association (NAJA) is well positioned to encourage this conversation through informed reporting, industry analysis, interviews and stakeholder engagement.

The goal should be to bring manufacturers, distributors, dealers, fleet operators and consumers around a fundamental question: What level of care should Nigerians reasonably expect after buying a vehicle?

That conversation must remain independent, balanced and evidence-led, rather than becoming a promotional platform for individual brands.

 

Make after-sales service a buying criterion

The shift towards stronger customer care will gather momentum when Nigerians begin to assess after-sales support as seriously as they consider engine performance, fuel economy, safety features and purchase price.

A private buyer should ask about warranty coverage, servicing costs and the location of authorised workshops. A fleet operator should evaluate parts availability, repair turnaround and vehicle downtime alongside acquisition costs. Families should know what assistance is available when a vehicle breaks down far from home.

Dealers that offer transparent terms and dependable support should earn a competitive advantage. Those that fall short should have a clear incentive to improve.

This is particularly important in a market where vehicle ownership involves significant financial commitment and prolonged exposure to maintenance costs. A seemingly attractive purchase can become expensive if parts are difficult to source or repairs take too long.

The industry must therefore recognise that customer care is not merely a cost centre. Properly managed, it can build loyalty, strengthen brand reputation, generate repeat business and encourage referrals.

 

The real test begins after payment

Nigeria does not need an automotive market in which businesses compete only to sell more vehicles. It needs one in which they also compete to keep customers satisfied long after the keys have been handed over.

The true measure of a brand is not simply how attractively it markets a vehicle or how efficiently it closes a sale. It is how responsibly it responds when the customer needs help most.

As competition intensifies, the companies that combine good products with reliable service, accessible parts and transparent customer support will have a stronger foundation for lasting success.

For buyers, the message is equally clear: look beyond the showroom, ask the difficult questions and compare the support behind the badge.

Buy the car. Demand the care.

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