Dangote Means Business: His Lagos Refinery Opens 2020
Africa’s richest man, Aliko Dangote, has arranged more than $4.5 billion, about 1.6 trillion naira, in debt financing for his Lagos oil refinery project.
This was what he told Reuters on Tuesday, while disclosing that his refinery aims to start production in early 2020.
Dangote said that lenders would commit about $3.15 billion, with the World Bank’s private sector arm providing $150 million, adding that he was investing more than 60% from his own cash flow.
Dangote Group has said that Standard Chartered Bank was arranging funds for the project.
“We will end up spending between $12 billion to $14 billion. The funding is going to come through equity, commercial bank loans, export credit agencies and developmental banks,” Dangote said in the interview in Lagos on Tuesday.
“Hopefully, we will finish mechanical (construction) by next year and products will start coming out in the first quarter of 2020.”
Nigeria’s central bank would provide guarantees for about 575 billion naira in local currency for 10 years, with African Development Bank providing a $300 million loan.
Trade banks from China, India and some European countries are also in the mix, Dangote said.
The planned refinery and petrochemical complex is expected to account for half of Dangote’s sprawling assets when it is finished next year.
Dangote, who built his fortune in cement, is building the world’s largest single oil refinery with capacity of 650,000 barrels per day (bpd) to help to reduce Nigeria’s dependence on imported petroleum.
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