Nigeria has given its state oil firm the green light to acquire a 20% stake in Dangote’s oil refinery for $2.76 billion, junior oil minister Timipre Sylva said on Wednesday.

The 650,000-barrel-per-day oil refinery, owned by Africa’s richest man Aliko Dangote, is under construction in Lagos, the biggest city in the most fuel-consuming nation in the region. The refinery is scheduled for commissioning by January.

Sylva said the government approved the Nigerian National Petroleum Corp’s (NNPC) acquisition at a Cabinet meeting, he told reporters in Abuja, adding that the country also awarded contracts for the modernisation of two state-owned refineries.

The has NNPC had said its move to work with private companies was in line with safeguarding the country’s energy security and would not undercut plans to rehabilitate its own refineries.

The NNPC said in June it had signed term sheets with Dangote Group for the stake in its $19 billion oil refinery and is in talks with banks to borrow to buy the stake but would require government approval of the plan.

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Source: Sweetcrudereports

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