Nigeria’s leading conglomerate, Dangote Industries Ltd., on Wednesday signed a loan agreement with a consortium of Nigerian and South African banks to raise a total of US$ 3.3 billion equity and US$ 6 billion loan capital for the construction of the biggest petroleum refinery and petrochemical and fertilizer plants in Nigeria.
The agreement, signed here, has the Standard Chartered Bank of South Africa as the global coordinator and Nigeria’s Guaranty Trust Bank as the local coordinator
Other participating banks include Access Bank, Zenith Bank, Ecobank Nigeria, Fidelity Bank, First Bank Nigeria, UBA, Standard Bank of South Africa Ltd., and FirstRand Bank of South Africa.
The two plants, which will cost a total of US$ 9 billion, will generate up to 9,500 direct and 25,000 indirect jobs. It will also reduce current volumes of refined fuel imports in Nigeria by about 50 per cent, effectively putting a stop to the importation of fertilizer.
A statement from the Dangote Group said the petroleum refinery, “with the refining capacity expected to reach 400,000 barrels of crude oil per day and producing a variety of refined fuel products from local crude resources, Nigeria will cut its current volumes of imported fuel products by a massive 50 per cent.
‘The 2.8 million tonnes of urea will be channelled into growing the local agriculture sector which is essential in producing healthy crops and promoting Nigeria and West Africa’s agricultural development.’
It said that the Petrochemical plant will produce Polypropylene which is a common component of most plastic and fabric products, adding ‘For example, it will be used in various forms of packaging, ropes and agro-sacks.”
Meanwhile, Africa’s richest man and President of Dangote Group, Aliko Dangote, said: “This plant will further entrench Africa’s role on the global map as not only a valued contributor for natural resources, but also a competent manufacturer of refined products and fertilizer. As a result, several African nations will be less reliant on importing fuel and fertilizer from foreign markets, reducing the negative impact of negotiating terms within increasingly turbulent international markets.”
Dangote Group’s main revenue and profit contributor is Dangote Cement, the leading integrated cement producer in Sub-Saharan Africa and the largest company on the Nigerian Stock Exchange.