The Managing Director of the
Nigerian National Petroleum Corporation on Tuesday explained why the national
oil company is purchasing a stake in Dangote oil refinery.
With an installed 650,000 barrels per day capacity, the refinery
is expected to begin production in 2022.
It has been touted as a groundbreaking project for energy
security in the country and for the African continent.
In May, the NNPC announced that it plans to acquire a 20 percent
equity stake in the company.
“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,” Mr Kyari said on
Tuesday while appearing on Channels Television’s Sunrise Daily.
He argued that the decision was also driven by the profit
potential of the refinery business.
“For the Dangote refinery, we are not taking government money to
buy it, which is the mistake that people are making,” he said. “We are
borrowing on the back of the cash-flow of this business.
“We know that this business is viable, it will work and it will
return dividends. It has a cash-flow that is sustainable because refinery
business, in the short term, will continue to be sustainable.
“That’s why banks have come forward to lend to us, so we can
take equity in this.”
Source: channelstv.com
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