Nigeria: Dangote has Paid Back 70% Of Loans For Refinery Project-CBN Boss Announces

The Dangote Group has paid back 70 per cent of the loans it took from the Central Bank of Nigeria to finance the group’s 650,000 barrels per day oil refinery located in Lekki, Lagos State, Governor of CBN, Mr Godwin Emefiele, has revealed.

Dangote Refinery, which is Africa’s largest crude oil refinery, was officially commissioned by President Muhammadu Buhari, on Monday, May 22, at a ceremony attended by many oil and gas leaders.

The refinery was initially estimated to cost just about $9 billion but the project cost escalated and was eventually completed with a total of $18.5 billion.

Speaking at the commissioning of the refinery, Godwin Emefiele said the amount constituted 50 per cent equity investment by Dangote and 50 per cent debt finance by banks.

According to him, the commercial loan component of the project was financed majorly by domestic banks while the rest was provided by foreign banks.

He added that the CBN also partnered with the Dangote Group to ensure the successful completion of the project by providing about N125 billion for domestic currency requirements while also ensuring the availability of foreign exchange (FX) to pay for imported equipment.

“We have it on good authority that the Dangote Group has paid off some portion of these commercial loans even before this commissioning today,” Emefiele said.

“Today, total loans outstanding have dropped from over $9 billion when this project started to $2.7 billion. This reflects the astute credit worthiness and commercial capability of the group and its chairman, Alhaji Dangote.

“I must, at this juncture, appreciate all the participating local Nigerian banks, which did not only partner with the project through effective financing but were keenly aware of the importance of the project for our nation.

“They provided immense support and exceptional understanding, even when interest payments and principal repayment had fallen due,” Emefiele stated.

Emefiele further expressed optimism that Nigeria, under the incoming administration, would cease importing petroleum products, fertiliser and petrochemicals and save the country over $26 billion.

Source: https://energynewsafrica.com