Sunday, 12 May 2013

Dangote Gets N670bn Loan to Construct Nigeria’s Biggest Refinery


One of Africa’s richest men, Aliko Dangote, intends to build a petroleum refinery in Nigeria.
The Chairman, Dangote Group, Aliko Dangote, said on Wednesday that the 400,000 barrels per day capacity refinery he plans to construct in Nigeria would be financed with loans totaling about $4.25 billion (N670 billion) provided by a consortium of some foreign and Nigerian banks.
He did not reveal the identities of the banks involved.

Mr. Dangote, who was speaking with Bloomberg in Cape Town during a business forum at the ongoing World Economic Forum on Africa in South Africa, said the refinery is expected to help Nigeria reduce its current dependence on imported petroleum products to survive.
Last month, Mr. Dangote had unfolded ambitious plans to invest about $8 billion in the construction of a refinery to be sited in the southwest part of the country. The construction of the refinery would commence by late 2016.
The 445,000 barrels a day combined production capacity of the country’s four refineries located in Port Harcourt, Warri and Kaduna is only able to yield an average 18 and 20 million litres of petrol to take care of the growing appetite of consumers, with current national consumption level put at an average of 32 and 35million litres per day.
The shortfall between local refining capacity as a result of aging infrastructure and poor maintenance is only bridged through massive importation, with the attendant corruption in the importation and distribution process.

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