$18.5bn Refinery: Dangote has paid $6bn, $3bn outstanding – Emefiele

Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has revealed that Dangote Group has paid $6 billion out of the $9 billion loan it took from the banks to build its refinery.

The 650,000pbd Dangote Petrochemical and Refinery Company was inaugurated in Lagos on Monday, May 22, 2023.

Speaking at the venue, Emefiele stated that the CBN provided N125 billion, to cover domestic currency requirements for the venture.

The CBN Governor said the refinery project would not only aid the nation’s domestic petrol needs, but also help in generating export revenues for our country.

Emefiele recalled: “In September 2013, when Alhaji Aliko Dangote announced his plans for the refinery, it was estimated to cost about $9 billion, of which $3 billion was projected as equity investment by the Dangote Group and the balance financed through commercial loans.

“Due to an array of factors, the project was eventually completed with a total of $18.5 billion with funding distributed into 50 per cent equity investment and 50 per cent debt finance.

“I am proud to state that the commercial loan component of the project was financed majorly by our domestic banks with the balance sourced from foreign banks.

“The Central Bank of Nigeria also partnered, as always, with the Dangote Group in ensuring the successful completion of the project by providing about N125 billion, to cover domestic currency requirements for the venture.

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“What you may not be fully aware of, Your Excellencies, is that the Dangote Group has started repaying some of the commercial loans even before the commissioning of this facility. This reflects the commercial capability of the Group and its Chairman.

“I am pleased to inform everyone today that, following extensive repayments, outstanding debt has dropped appreciably from over $9 billion to $3 billion.”

The CBN Governor commended Nigerian banks saying they did not only partnered 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 said.

He described the successful completion of the refinery to President Buhari’s astute vision to ensure that Nigeria produces what Nigerians consume and that we consume what we produce.

The Star