Nigerian business magnate and owner of the Dangote Group, Aliko Dangote has mobilised over $4.5 billion for his crude oil refinery project through debt financing.
Leveraging on the World Bank’s private sector arm which is providing $150 million for the project, Dangote said lenders would make a commitment of about $3.15 billion, adding that the Central Bank of Nigeria (CBN) would provide guarantees for about N575 billion in local currency for 10 years, while the African Development Bank (AFDB) would be providing a $300m loan.
As the crude oil refinery project is programmed to be in operation by Q1 2020, Hyundai Heavy Industries Co. (HHI), in April, 2018, won a $58 million contract to construct 15 bullet tanks for the storage of liquefied petroleum gas (LPG) at Dangote Oil Refining Company.
In early July, 2014, Dangote signed a $650 million loan facility with the African Export-Import Bank (Afreximbank) for his oil refinery project in Nigeria. According to the facility terms read out during the signing, the 7-year-loan would attract a moratorium of 5 years.
The Dangote Refinery and Petrochemical occupies 2, 200 hectares at the Lekki Free Trade Zone in Lagos, and is adjudged as the single largest train petroleum refinery in the world.Upon completion, the refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene.
The petroleum refinery company, aimed at processing different grades of crude to meet local demand for refined petroleum products and also target export markets abroad.
He is building the world’s largest single oil refinery and also expanding into fertiliser, aiming to address long-standing problems in the Nigeria’s energy sector.
The project which is expected to generate 9,500 direct and 25,000 indirect jobs, would account for half of Dangote’s sprawling assets when it is completed for projection next year.
When it becomes operational, Dangote Refinery will help the country to save five billion dollars on oil importation, and also aid the country with about 7.5 billion dollars forex savings on importation.
