The Federal Executive Council (FEC) has approved the acquisition of 20 per cent minority stakes ($2.76 billion) by the Nigerian National Petroleum Corporation (NNPC) in the Dangote Petroleum and Petro-Chemical Refinery.

Timipre Sylva, Minister of State for Petroleum Resources, briefed journalists after the virtual FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa.

Mr Sylva explained that the acquisition would cost $2.76 billion.

The minister added that the FEC also approved contracts for the rehabilitation of Warri and Kaduna refineries.

“The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna refineries at the combined total sum of $1.5 billion – $897.67 million for Warri refinery and $586. Nine million for the Kaduna refinery,” Mr Sylva disclosed. “The executive council also approved the acquisition of 20 per cent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of $2.76 billion.”

According to the junior petroleum minister, the completion of the rehabilitation of the Warri and Kaduna refineries is going to be in three phases.

“The first phase is within 21 months; in 23 months, phase two will be completed, and in 33 months, the full rehabilitation will be completed,” he added. “Work has already commenced in Port Harcourt; already the first 15 per cent of the contract sum has been paid to the contractor, and the contractor has fully mobilized to site.”

He noted that the FEC also discussed the need to give periodic updates on the projects.

According to him, there will soon be an inspection of work in the Port Harcourt refinery.