Dangote has Paid Back 70% of Loans to Finance Refinery – Emefiele

Dangote Group has paid back 70 percent of the loans it took from Central Bank of Nigeria (CBN) to construct an the 650,000 barrels per day (bpd) Dangote Refinery commissioned in Lagos, according to Godwin Emefiele, governor of the Central Bank of Nigeria (CBN).

Emefiele disclosed that the refinery was initially estimated to cost just about $9 billion but the project cost escalated and was eventually completed with a total of $18.5 billion.

According to the CBN boss, the amount constituted 50 percent equity investment by Dangote and 50 percent debt finance by banks.

Emefiele explained that the commercial loan component of the project was financed majorly by domestic banks while the rest was provided by foreign banks.

He stated further that the CBN also partnered with the Dangote Group to ensure successful completion of the project by providing about N125 billion for domestic currency requirements while also ensuring the availability of foreign exchange (FX) to pay for imported equipment.

In his words: “We have it on good authority that the Dangote Group has paid off some portion of these commercial loans even before this commissioning today.

“Today, total loans outstanding have dropped from over $9 billion when this project started to N2.7 billion. This reflects the astute credit worthiness and commercial capability of the group and Alhaji Dangote, its chairman.

“I must at this juncture appreciate all the participating local Nigerian banks, who did not only partner 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 also expressed his confidence that Nigeria, under the incoming administration, will cease importing petroleum products, fertiliser and petrochemicals and save the country over $26 billion.