In a study published on Monday, credit rating company Fitch Ratings stated that the Dangote Refinery intends to sell 12.7% of its ownership for loan servicing in 2024.

The Nigerian National Petroleum Company Limited had previously intended to purchase a 20% share in the refinery, Fitch noted.

The rating agency did note, however, that the national oil company’s choice to forgo exercising its option to purchase an extra 12.75 percent as of June 2024 would have an effect on the group’s capacity to repay debt.

With an option to buy the remaining 12.75 percent of the refinery by June 2024, the NNPC paid $1.0 billion in 2021 to acquire a 7.25 percent ownership in the facility. However, the national oil company has since changed its mind.

“Since the option has not been exercised, the group plans to divest a 12.75 per cent stake in DORC in 2024.

“The group intends to service its significant syndicated loan maturing in August 2024 from the equity divestment. However, timely divestment and meeting the imminent maturity are highly uncertain in our view,” Fitch said.t