….. As Dangote Rejects NNPC Further Investment Move
The Chief Executive Officer of Norges Bank Investment Management, the world’s largest sovereign wealth fund manager, Nicolai Tangen, and the President/Chief Executive of Dangote Group, Aliko Dangote, have held a high-level meeting to strategically bid to broaden the Norwegian investment network in the African Sub-region
The fund is one of the world’s largest investors, owning almost 1.5 percent of all shares in the world’s listed companies and overseeing assets valued at approximately $1.9 trillion.
The recent strong expression of investment interest by the Norwegian Sovereign Wealth Fund in Dangote’s business conglomerate in Africa is perceived as driven by the company’s excellent business performance across its various establishments, particularly in the oil and gas sector.
Dangote plans to increase its 650,000 barrels per day Refinery in Nigeria to 1 million barrels per day and to replicate the same investment in Kenya, which is viewed by global investors as an attractive expansion move for such an investment partnership.
Dangote’s NNPC Further Equity Rejection
In a further interactive section with the Chief Executive Officer of Norges Bank Investment Management, Nicolai Tangen, Dangote disclosed the reason why his mega-refinery in Nigeria has denied the Nigerian National Petroleum Company Limited an opportunity to increase its stake in the Dangote Petroleum Refinery.
The refusal was anchored on the company’s plans to broaden ownership and eventually allow more Nigerians to participate through a public listing, stating that the company wants to spread the shares across a wider pool of investors.
“The other biggest risk is government inconsistencies in policies, and we are addressing that one because if you look at our refinery, the national oil company already owns 7.25%, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it,” Dangote stated
The NNPC currently owns a 7.25% equity stake in Dangote’s $20 billion 650,000 barrels per day refinery after acquiring the shares for $1 billion in 2021, deviating from its initial plan to acquire a 20% stake in Africa’s largest downstream infrastructure.
