According to Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), the Dangote Group has repaid 70 percent of the loans it obtained to build an oil refinery. Emefiele made this statement during the inauguration of the Dangote Refinery in Lagos, which has a capacity of 650,000 barrels per day.
Initially estimated to cost around $9 billion, the refinery's project expenses increased, ultimately reaching a total of $18.5 billion. The financing consisted of a 50 percent equity investment by Dangote and a 50 percent debt finance provided by banks. Domestic banks primarily funded the commercial loan component, while foreign banks contributed the remaining portion.
Emefiele acknowledged that the CBN collaborated with the Dangote Group to ensure the successful completion of the project. The CBN provided approximately N125 billion to meet domestic currency requirements and facilitated the availability of foreign exchange for the payment of imported equipment.
Emefiele revealed that the Dangote Group had already repaid a portion of the commercial loans before the refinery's commissioning. The outstanding loans decreased from over $9 billion at the project's commencement to N2.7 billion. This demonstrates the creditworthiness and commercial capability of the group and its chairman, Alhaji Dangote.
The CBN governor expressed confidence that Nigeria, under the incoming administration, would no longer need to import petroleum products, fertilizers, and petrochemicals. This development is expected to save the country over $26 billion.
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