Nigeria’s apex bank, the Central Bank of Nigeria, CBN, is set to provide a financial facility for the ongoing Dangote Refinery project, to the tune of N75 billion.
Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, disclosed this yesterday in Abuja while answering questions from journalists during the just concluded Monetary Policy Committee (MPC) meeting.
While the nature of the financial facility is not exactly clear at the moment, Mr Emefiele did mention that Aliko Dangote has already invested about 50% of the $9 billion dollars needed to complete the project . The remaining 50% will be sourced as loans from both local and foreign lenders.
The N75 billion capital facility from the Central Bank of Nigeria will possibly make up a part of the loans.
The CBN Governor, who recently went on a tour of the refinery, also described it as “the biggest refinery I have ever seen” as it is supposedly about ten times more the size of Victoria Island, Lagos.
Africa’s richest man, Aliko Dangote, has invested a lot already in the project which is expected to be completed next year.
Just last week, the company received shipment of the Fluid Catalytic Cracking equipment, a major refinery equipment which is probably undergoing installation at this time.
Upon completion, it will refine an average of 650,000 barrels of crude. As such, the refinery will go a long way towards meeting local demands for petroleum products.
The company will also export its refined products to other African countries, hence serving as a major source of foreign exchange for the country. As we reported last year, some oil distributors in places like Ghana and elsewhere have already begun pledging their patronage in readiness for the commencement of the refinery’s operations.
Note that although Nigeria is one of the world’s leading producers of crude, it currently depends largely on the importation of refined petroleum products to meet local demand. This is one challenge that the Dangote Refinery is positioned to change for good.