Africa’s wealthiest man, Aliko Dangote, has signed a
multi-billion dollar deal with banks to finance the building of an oil refinery
in Nigeria.
multi-billion dollar deal with banks to finance the building of an oil refinery
in Nigeria.
The refinery would be the largest in Africa, turning
Nigeria into a petroleum exporter, he told the BBC.
Nigeria into a petroleum exporter, he told the BBC.
Nigeria is Africa’s biggest oil producer but lacks
refining capacity and has to import most of its fuel.
refining capacity and has to import most of its fuel.
The West African state is often hit by fuel shortages,
and conflict over control of its oil wealth.
and conflict over control of its oil wealth.
People in Nigeria’s oil-producing southern Niger Delta
region are among the country’s poorest and accuse the government and oil
companies of failing to develop the area.
region are among the country’s poorest and accuse the government and oil
companies of failing to develop the area.
Dangote, who made his fortune in cement, flour and sugar,
is worth an estimated $16bn (£10bn) and has topped the Forbes list of Africa’s
richest men for the past three years.
is worth an estimated $16bn (£10bn) and has topped the Forbes list of Africa’s
richest men for the past three years.
Dangote told the BBC’s Focus on Africa programme the
refinery would create “thousands” of jobs.
refinery would create “thousands” of jobs.
It would be built in the south-west and would become
operational in 2016, he said.
operational in 2016, he said.
Dangote signed a $3.3bn loan deal with local and foreign
banks to build the refinery, as well as fertiliser and petrochemical plants.
banks to build the refinery, as well as fertiliser and petrochemical plants.
The entire venture would cost $9bn, with $3bn in equity
from Dangote Industries and $6bn to be raised in loan capital.
from Dangote Industries and $6bn to be raised in loan capital.
The initial loan facility was co-ordinated globally by
Standard Chartered and in Nigeria by Guaranty Trust Bank, London’s Financial
Times newspaper reports.
Standard Chartered and in Nigeria by Guaranty Trust Bank, London’s Financial
Times newspaper reports.
“At least for the first time in our lifetime, we’ll
see Nigeria exporting petroleum products,” Dangote told Focus on Africa on
the BBC World Service.
see Nigeria exporting petroleum products,” Dangote told Focus on Africa on
the BBC World Service.
“We’ll also see Nigeria for the first time exporting
fertiliser rather than using hard-earned foreign exchange to import
fertiliser,” he added.
fertiliser rather than using hard-earned foreign exchange to import
fertiliser,” he added.
Nigeria currently imports more than three-quarters of its
fuel despite being the continent’s biggest producer.
fuel despite being the continent’s biggest producer.
Although it has two refineries in the Port Harcourt area,
neither runs at full capacity.
neither runs at full capacity.
Previous efforts to repair Nigeria’s dilapidated
refineries and build new ones have been scuppered to protect the interests of
powerful fuel importers, some of whom have been linked to a subsidy scam
costing the country billions of dollars a year, correspondents say.
refineries and build new ones have been scuppered to protect the interests of
powerful fuel importers, some of whom have been linked to a subsidy scam
costing the country billions of dollars a year, correspondents say.
Fuel in Nigeria is sold at a subsidised price. A
government attempt to remove the subsidy in 2012 led to nationwide protests.
The plan was subsequently dropped.
government attempt to remove the subsidy in 2012 led to nationwide protests.
The plan was subsequently dropped.
Last year an investigation revealed that in two years,
more than $6bn was lost in a fuel subsidy scam.
more than $6bn was lost in a fuel subsidy scam.
Source: Thisday
