BY BANYO TEMITAYO
THE Nigerian National Petroleum Corporation said on Tuesday that it had concluded plans to raise bank loans to acquire 20 per cent shares in the $12billion Dangote Refinery.
Group Managing Director, NNPC, Mele Kyari, said the banks were willing to support the deal because the investment was sustainable, noting that negotiations were ongoing with selected banks.
Kyari, who spoke on Channels Television, explained that the bank loans would be backed by cash flows from the project.
He said, “The investment is sustainable and that is why the banks have come forward to lend to us, so that we can take equity in this. We are not putting anything at stake.
“The information in the public domain alluding that the investment is inappropriate is not correct. We are very proud that we did.
“This is good for our shareholders which include 200 million Nigerians, who would have also happily bought shares from this refinery. But have done so on their behalf. Ultimately, the value will come to the country.”
“There’s no way you can watch a business of this magnitude, of this sensitive to run without an embodiment of the national oil company. No country does that,” the NNPC GMD said.
He said Nigeria would become a net exporter of petroleum products across West Africa when the Refinery becomes operational with the NNPC owned refineries.
He added that, having successfully awarded the complete rehabilitation of the Port Harcourt refinery, the contracts for the Warri and Kaduna refineries would be awarded before the end of July, this year.
Kyari said, “We are not going to take any government money to overhaul these refineries. We are borrowing also on the back of the cash flows of these refineries.
“It means they can deliver commercially. Part of the requirements of the lenders is that we should not operate these refineries.”
“We must have Operations and Maintenance contracts. Practically, these refineries will be run by the lenders,” he said.
