The National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) regulatory forbearance to invest in the planned $50 billion Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE.

The approval provides a special dispensation allowing pension operators to participate in what is expected to become one of Africa’s largest public offerings.

According to PenCom, the decision followed a detailed review of requests seeking permission to invest pension fund assets in the proposed listing.

Dangote Refinery Targets Landmark $50 Billion Valuation

The Dangote Petroleum Refinery is preparing to float about 10 percent equity of its operations to the public in a deal expected to value the refinery at up to $50 billion.

The refinery, located in Lagos with a capacity of 650,000 barrels per day, is already regarded as one of Africa’s most significant industrial assets.

The IPO is also expected to include dollar-denominated dividends, making it attractive to institutional investors, including pension funds.

PenCom Cites Economic Importance and Strong Fundamentals

In its circular to PFAs, PenCom said the refinery’s strategic importance to Nigeria’s economy and its strong growth prospects influenced its decision.

The regulator also referenced the track record of Dangote Industries Limited as a key factor in granting the approval.

PenCom noted that the investment could generate broad economic benefits, particularly in energy security, industrial growth and capital market development.

Regulatory Waiver Comes With Strict Conditions

The circular, signed by A.M. Saleem, Director of the Surveillance Department, stated that PFAs may proceed under a special dispensation from Section 6.2.7.1 (iii) of the investment regulation framework.

This waiver temporarily removes certain restrictions, including profitability and dividend history requirements, but maintains all other regulatory safeguards.

However, PenCom stressed that PFAs must still comply with internal risk management rules and fiduciary responsibilities to pension contributors.

Waiver Described as Exceptional and Non-Precedent Setting

PenCom emphasized that the approval is strictly case-specific and applies only to the Dangote Refinery IPO.

“The regulatory forbearance granted under this Circular is exceptional, one-off, and strictly case-specific,” the commission stated.

It added that the decision should not be interpreted as a precedent for future IPOs or investment transactions.

The circular took immediate effect, with PFAs directed to seek clarification from the Surveillance Department where necessary.

The post PenCom Grants PFAs Special Approval to Invest in Dangote Refinery $50bn IPO appeared first on Housing TV Africa.

Chairman of the Committee, Hon. Ikenga Imo Ugochinyere, disclosed on Friday that the House had rejected an earlier report submitted by the former committee due to what he described as “omissions of critical facts,” prompting the decision to undertake a fresh and thorough review.

“This investigation is distinct from the previous inquiry,” Ugochinyere told journalists in Abuja. “The House has mandated our Committee to conduct a fresh probe with the clear objective of uncovering what truly transpired in the OVH acquisition process.”

He explained that the probe would focus on financial details of the deal, the acquisition agreement, and allegations surrounding former OVH managers who are said to have formed a new company that eventually acquired OVH before assuming top positions in NNPC Retail.

“This raises significant concerns about transparency, potential conflict of interest, and the integrity of the entire transaction,” Ugochinyere noted.

The Committee Chair also invited members of the public and industry stakeholders to submit relevant information and documents to assist the investigation. “We are providing an open platform for those with information to contribute meaningfully. Submissions should be directed to the Clerk of the House Committee on Petroleum (Downstream),” he added.

While acknowledging delays in the process, Ugochinyere blamed the slow pace on the failure of some stakeholders to provide key documents, but affirmed that the Committee would now proceed regardless of those lapses.

“We are committed to concluding this assignment within the shortest possible time. If any individual is found to have acted improperly, either through direct wrongdoing or dereliction of duty, we will not hesitate to name them and recommend appropriate action in the national interest,” he assured.

He stressed that finalizing the investigation would allow the current leadership at NNPC Retail to continue their reform agenda without the burden of unresolved controversies.

“Public trust in the petroleum sector is crucial. This investigation is not just about accountability—it’s about giving NNPC Retail the space to carry out reforms unencumbered and restoring confidence in our national oil assets,” Ugochinyere stated.

The investigation comes as the House moves to reinforce transparency and credibility in Nigeria’s downstream petroleum operations. Industry observers are watching closely as lawmakers seek to clarify issues that have sparked debate in recent months.

The post Reps Launch Fresh Probe into NNPCL’s OVH Energy Acquisition, Refinery Deal appeared first on Housing TV Africa.

In a groundbreaking move, the Nigerian National Petroleum Company Limited (NNPCL) has unveiled plans to transfer the Port Harcourt Refining Company into the hands of private operators.

This strategic decision aims to enhance the refinery’s operational reliability and sustainability while fulfilling the nation’s fuel supply and energy security commitments.

As reported in a statement on the NNPCL’s website, the company is actively seeking partnerships with reputable and credible operations and maintenance firms to take charge of the Port Harcourt Refinery. The contractual scope will encompass critical refinery processes, including long-term and short-term production/operations planning, execution of production and operations, monitoring, reporting, optimization of operations, maintenance execution, health and safety protocols, environmental management, and oversight of minor projects.

READ ALSO: Major Nigerian Oil Marketers Enlist with Dangote Refinery for Product Distribution

To be considered for the engagement, interested companies must demonstrate a robust financial standing, with a minimum average annual turnover of at least $2 billion USD for the fiscal years ending in 2019, 2020, 2021, and 2022.

This significant development follows the completion of the rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company, as announced by the Federal Government on December 21, 2023. The successful mechanical completion marked the conclusion of the first phase of the plant’s renovation, poised to refine 60,000 barrels of crude oil daily post the Christmas break.

Having been operational since 1965, the Port Harcourt Refinery, situated in Nigeria’s oil-rich Niger Delta region, holds historical significance. The Alesa Eleme refinery complex, located approximately 25 kilometers east of Port Harcourt in Rivers State, Nigeria, has played a pivotal role in the country’s oil industry.

READ ALSO: Major Nigerian Oil Marketers Enlist with Dangote Refinery for Product Distribution

In March 2021, the Nigerian government allocated GBP 1.08 billion ($1.5 billion) for the extensive renovation and modernization of the refinery complex. With the successful test-run of crude oil supply initiated by the NNPCL, the privatization move is expected to usher in a new era of efficiency and effectiveness in the operations of the Port Harcourt Oil Refinery.

The post Port Harcourt Oil Refinery to be Privatized for Operational Efficiency appeared first on Housing TV Africa.