Dangote Group Makes Significant Strides in Refinery Project Financing

 

In a recent development that underscores the resilience and financial acumen of Africa's leading industrial conglomerate, the Dangote Group has announced a major milestone in the financing of its ambitious refinery project. The group's founder and Africa's richest person, Mr. Aliko Dangote, revealed that approximately $2.4 billion of the $5.5 billion borrowed for the construction of the $19 billion refinery has been repaid¹.

The refinery, which is poised to be one of the world's largest with a capacity of 650,000 barrels per day, is located near Lagos, Nigeria. This strategic project is expected to significantly boost Nigeria's oil refining capabilities and reduce the country's reliance on imported petroleum products.

Mr. Dangote disclosed this significant financial achievement at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas. He highlighted the challenges faced during the project, including attempts by various entities to sabotage the facility, which he described as stronger than the "oil mafia."

Despite these challenges, the Dangote Group has managed to make substantial repayments on the borrowed amount, with only about $2.7 billion left to be paid. Mr. Dangote expressed gratitude to financial institutions like Afreximbank and Nigeria's Access Bank for their unwavering support, without which the vision for the refinery could have faltered.

The business magnate also touched upon the difficulties encountered with foreign banks, which he claimed showed little interest in aiding Africa's growth. He pointed out that some even tried to push the company into loan default during the COVID-19 pandemic.

As the Dangote Group continues to navigate the complex landscape of international finance and local challenges, this repayment marks a testament to the group's commitment to economic growth and industrialization in Africa. The refinery project not only represents a significant industrial achievement but also a beacon of hope for the continent's self-sufficiency and economic sovereignty¹.