The Nigerian National Petroleum Company Limited (NNPCL) has repaid $625 million of the $1.036 billion it borrowed to buy a 20-percent stake in the Dangote Oil Refinery.
As of Dec. 31, 2023, a balance of $424 million remains. This repayment forms a key part of NNPCL's decision to establish a presence in the refinery located in Lagos' Lekki Free Zone.
Lekki Refinery Funding Limited provided the loan with an interest rate of three-month LIBOR plus 6.125 percent. Initially, NNPC Greenfield Limited managed this investment.
However, following the Petroleum Industry Act restructuring, NNPCL's Downstream Investment Service (NDIS) took over management. This shift changed the payment method from a crude oil discount to direct cash payments.
