The Dangote Group has committed $3.5 billion in equity towards the construction of Nigeria’s first private petroleum refinery. On September 4, the group will enter into a term loan agreement with a consortium of local and foreign banks as part of the financing for the project.
Dangote plans to invest a total of $9 billion towards building the refinery, petrochemical, and fertilizer complex which will be the centerpiece of Nigeria’s economic transformation agenda.
The complex will be located in the Olokola Liquefied Natural Gas Free Trade Zone.
The oil refinery will be able to produce 400,000 barrels per day and is expected to come online in 2016. With the operation of the refinery, it is expected that Nigeria’s dependence of foreign oil imports will be significantly reduced.
Government-owned refineries in Kaduna, Warri and Port Harcourt operate at just 30% capacity, outputting 415,000 barrels per day.
The president of the Dangote Group is Aliko Dangote, Africa’s richest man with an estimated net worth of US$20 billion.