Dangote Group Signs $3.3Bn Loan To Build Refinery in Nigeria

Industry leader in Cement and Sugar Manufacturing in Africa, Dangote Group, has announced that it has signed a loan facility agreement of $3.3 billion to build a refinery and petrochemicals complex at the OK-LNG Free Trade Zone, between Ogun and Ondo states. The Group secured a $3.3 billion medium term loan from some local banks and international finance organizations. The Group also said it secured $2. 25 billion from the Economic Commission for Africa, ECA. Dangote’s equity contribution is $3.50 billion. The Central Bank of Nigeria supports the project with $305.7 million with interest rate of 7 percent to be repaid in 15 years. Group Chairman, Aliko Dangote, says, “As an investor who believes in Nigeria, knows Nigeria well and whose prosperity was made in Nigeria, we have responded to the challenge with our decision to invest $9 billion in a refinery/petrochemical and fertilizer complex to be located at the OK-LNG Free Trade Zone. This complex will be the largest industrial complex project ever in the history of our great nation.” “When completed, the fertilizer plant would produce 2.75 metric tons per annum of Urea and Ammonia; while the refinery would process 400,000 barrels of crude oil per day. In addition to high grade petrol, the refinery will produce: diesel, aviation fuel, household kerosene, slurry as raw material for carbon black, as well as 650,000 metric tons of polypropylene per annum. Our mission is to, through industrialization, reverse the historical trend of the export of foreign exchange and jobs and replace it with foreign exchange conservation and job creation.” Guaranty Trust Bank and Standard Chartered Bank led the loan deal. Eight Nigerian Banks and two from South Africa also participated, they are; Access Bank Plc, Diamond Bank Plc, Ecobank Plc, Fidelity Bank Plc, First Bank of Nigeria Plc, First City Monument Bank Plc, UBA Plc, Zenith Bank Plc, FirstRand Bank of South Africa and Standard Bank of South Africa Limited.