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Dangote Has Repaid $6.3bn Out Of $9bn Borrowed From Banks For Refinery Project–Emefiele

The Chairman of Dangote Group, Aliko Dangote has repaid its financiers $6.3bn out of the $9bn borrowed for the construction of the 650,000 barrels per day refinery.

The Governor of the Central Bank of Nigeria, Godwin Emefiele made the disclosure on Monday during the commissioning of the refinery in Lagos.

According to Emefiele, when Dangote announced his plans in 2013, a handful of investors and foreign banks doubted the project.

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He revealed that between 2013 till date, Dangote borrowed $9bn from banks and other financiers.

The Governor said, “In September 2013, when Dangote announced his plans for a refinery, it was estimated to cost just $9bn. By 2017 when Dangote Group commenced this project, the project has escalated, and due to an array of factors, the project was eventually completed today at a total cost of $18.5bn with the contribution of 50 per cent equity by Dangote and 50 per cent debt finance by our banks.

“I am delighted to announce that the commercial loan components of the project were financed majorly by our domestic banks with the balance of from foreign banks.

“The Central Bank of Nigeria also partnered as always with Dangote in ensuring the successful completion of these projects by providing over N125bn to cover domestic currency requirement for the venture while also ensuring the availability of foreign exchange to pay for the importation of some of the plants and machinery being commissioned today.

“We have it on good authority that the Dangote Group has paid down some portion of its commercial loan even before the commission. As of today, the total loan outstanding has dropped from over $9bn when this project started to $2.7bn today.

“This reflects the astute creditworthiness and commercial capability of the Group and its Chairman, Dangote.”

Emefiele said local banks provided support to Dangote noting the significance of the project to the country’s economy.

“They provided immense support and exceptional understanding even when interest and principal payment were almost overdue, they were patient with Dangote Group,” he added.

He said with the development, Nigeria will no longer import petroleum products, fertilizers, and petrochemicals.

Emefiele said, “Nigeria will seize the of import petroleum products, fertilizers, and petrochemicals that drain over $26bn in foreign exchange in 2022.”

Dangote in his presentation however applauded the commitment of Emefiele to the refinery project.

According to him, without Emefiele, the project would not have been successful.

Dangote said, “Governor Emefiele moved mountains to ensure the success of this project. Apart from the top management of the refinery, no one has visited this site more than Governor Emefiele.”

ALIKO DANGOTECENTRAL BANK OF NIGERIAdangote groupDangote refineryGODWIN EMEFIELE
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