Africa’s Dangote gets $300 M loan for greenfield refinery, fertilizer unit
The board of directors of the African Development Bank (AfDB) approved a loan of $300 million to Dangote Industries for the construction and operation of a greenfield crude oil refinery and a greenfield fertilizer manufacturing plant.
Both projects will produce for consumption in Nigeria and neighboring African countries. The project will allow Nigeria, which currently relies on imported petroleum products and fertilizer, to progressively become self-sufficient and transformed into a major exporter.
The oil industry in Nigeria contributes a large share to gross domestic product and accounts for the bulk of federal government revenue and foreign exchange earnings. The country is the first crude oil producer in Africa, with a production close to 2.2 million bpd.
Paradoxically, the country is a big importer of refined petroleum products for its economy as well as fertilizer products.
The projects will add value to local natural resources, double the countrys refining capacity, reduce by more than 80% current imports of fuel in the country and eliminate fertilizer imports, according to company officials.
The projects are expected to help Nigeria on forex savings of $65 billion through import substitution and provide revenues for FGN (taxes and fees).
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