The richest man in Africa arranges sh452b funding for the oil refinery :: Kenya

The richest man in Africa, Aliko Dangote, has settled more than 452 billion shillings for his Nigerian oil refinery project and is expected to start producing in early 2020, a he told Reuters.

Dangote, who built his fortune in cement, is building the world's largest oil refinery with a capacity of 650,000 barrels per day (bpd) to help reduce Nigeria's dependence on imported oil.

ALSO READ:

The first quarter profit of the standard charter fell to Sh1.84b

Although it is a crude oil exporter, Nigeria imports most of its oil due to a lack of capacity domestic refining.

Lenders would commit about $ 3.15 billion, the private sector of the World Bank providing $ 150 million, said Dangote, adding that he was investing more than 60% of his own cash flow .

Dangote Group stated that Standard Chartered Bank was arranging funds for the project.

"We will end up spending $ 12 billion to $ 14 billion and the funding will come from equity, commercial bank loans, export credit agencies and development banks," said Dangote. in an interview in Lagos on Tuesday.

Avoid false news! Subscribe to the standard SMS service and receive factual news and verified in real time. Text the word "NEWS" to 22840

"I hope that we will finish mechanical construction here next year and that the products will start coming out in the first quarter of 2020."

The central bank of Nigeria will provide guarantees for about N $ 575 billion in local currency for 10 years, with the African Development Bank providing a loan of $ 300 million. Commercial banks in China, India and some European countries are also in the pipeline, said Dangote.

The planned refinery and petrochemical complex is expected to account for half of Dangote's sprawling badets when it is completed next year.

Last week, Dangote signed a $ 650 million loan with the African Export-Import Bank (Afreximbank) for the project.

Dangote said he was looking to acquire more oil fields than his orientation to the oil sector to fuel the refinery.

Apart from oil, Dangote said he's also watching the Arsenal English football team.
"We will go after Arsenal from 2020 … even if someone buys it, we will go after it again," he told Reuters, referring to reports that Russian billionaire Alisher Usmanov was seeking to sell his stake 30% in the club. .

Dangote added that the need for a healthy cash flow until the end of the refinery project excludes a move for Arsenal before that date.