The Chief Executive Officer (CEO) of Dangote Refinery, Aliko Dangote, has revealed that his company secured a total of $2.7 billion in forex allocations from the Central Bank between 2013 to 2023 to finance the refinery.
Dangote made this disclosure in a statement at his mega refinery in Lagos.
He explained that the refinery was primarily funded through the company’s own resources, with minimal external assistance.
He said that he chose to bypass project financing due to the challenges of securing funds from international creditors.
“On the loan that we got, part of the loan was taken by Dangote Industries, which is a local company. Dangote Industries got allocation from Central Bank and the total allocation that we got, including the money that we lost in terms of interest, was about $2.7 billion from 2013 to 2023.
“Out of the $2.7 billion we still have more than $200 million of forwards that we’re yet to collect from the CBN. So, it’s the total of $2.5 billion we got from the CBN in real cash which was paid in terms of interest and principal payment,” Dangote said.
Refinery is not responsible for the depletion of the CBN FX Account
Speaking further, the business mogul said contrary to popular belief, his refinery was not responsible for the depletion of CBN’s foreign exchange account.
Dangote said not only were the funds obtained from the apex bank in a ten-year period minimal, they would also be returned into back into the country through dividends and payments.
Accordingly, Dangote said once the refinery begins to make a profit, it will begin payment of the loan has soon as possible.
“Dangote Industries as soon as they get their dividends are bringing that money back to sell in the local market. They’re bringing that money back into Nigeria.
“There’s no money we’ve taken away from Nigeria. And the one that we took, we’ll return it back. So it’s better for people to understand.
“It’s better for people to understand that what we took from CBN, we’re bringing it back. The thinking of people is that the majority of the Central Bank’s money was depleted by the Dangote’s major projects. We got $2.5 billion cash from Central Bank and that money will come back as soon as we start making money. Once we start making money, we’ll start paying the loans that we have,” Dangote added.
What you should know
- The Dangote Refinery has come into conflict with Nigeria’s oil regulatory bodies, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
- Aliko Dangote, the owner of the refinery, has been addressing various allegations made by the regulators and providing explanations about the funding of the refinery.
- In a previous statement, Dangote mentioned that his company has repaid $2.5 billion out of the $5.5 billion borrowed from different banks to finance the construction of the refinery.
- Additionally, the former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, stated that Dangote had repaid 70% of the loan obtained from the apex bank as of 2023.
