According to Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, the Federal Government has authorised the state-owned oil corporation, the Nigerian National Petroleum Corporation (NNPC), permission to buy a 20% share in Dangote’s oil refinery for $2.76 billion.

Aliko Dangote, Africa’s richest man, is building a 650,000-barrel-per-day oil refinery in Lagos, the commercial hub of Africa’s largest oil producer. The refinery is expected to be operational in January 2022.

At the most recent weekly Federal Executive Council (FEC) meeting, the government approved the acquisition by the Nigerian National Petroleum Corporation (NNPC). The minister went on to say that the country had also given contracts to modernise two state-owned refineries.

The NNPC is collaborating with private enterprises to ensure the country’s energy security, and it will not jeopardise efforts to refurbish its refineries.

In June, the NNPC announced that it has inked term sheets with Dangote Group for a part in its $19 billion oil refinery and that it is in talks with banks to borrow money to purchase the stake.

The Dangote Group earlier stated that NNPC and three other companies had approached it about purchasing a stake to secure crude supply deals.

Nigeria approved $1.5 billion for the modernization of the Port Harcourt oil refinery in March, and Tecnimont of Italy was granted the contract (MTCM.MI). According to Sylva, 15% of the contract sum has been paid, and work in Port Harcourt has begun. The Cabinet also awarded a $1.484 billion contract for the modernization of the Warri and Kaduna refineries to Saipem SpA (SPMI.MI) and Saipem Contracting Ltd.