The President, Dangote Industries Limited, Aliko Dangote, has arranged more than $4.5bn in debt financing for his crude oil refinery project and aims to start production in early 2020.
Dangote, Africa’s richest man, is building a refinery with a capacity of 650,000 barrels per day to help reduce Nigeria’s dependence on imported petroleum products.
He was quoted by Reuters as saying that lenders would commit about $3.15bn, with the World Bank’s private sector arm providing $150m, adding that he was investing more than 60 per cent from his own cash flow.
Dangote said that Standard Chartered Bank is arranging funds for the project.
He stated, “We will end up spending between $12bn and $14bn. The funding is going to come through equity, commercial bank loans, export credit agencies and developmental banks.
“Hopefully, we will finish mechanical (construction) by next year and products will start coming out in the first quarter of 2020.”
Dangote said the Central Bank of Nigeria would provide guarantees for about N575bn in local currency for 10 years, with the African Development Bank providing a $300m loan.
According to him, the trade banks from China, India and some European countries are also in the mix.
Last week, Dangote signed a loan of $650m with the African Export-Import Bank for the project.
He said he was looking to acquire more oilfields as his focus shift towards the oil sector to feed the refinery.