Dangote Group plans to borrow an additional US$3.3 bln to invest in a US$9 bln oil refinery and petrochemical complex in Nigeria, as per Nigeria’s Business Day. A consortium of local and foreign banks will finance the project. The refinery, which will be located at the Olokola Liquefied Natural Gas (OKLNG) Free Trade Zone in Nigeria’s southwest region, will be Nigeria’s first private and Africa’s largest petroleum refinery, with a projected daily production output of 400,000 bpd. In May 2013, Dangote raised US$4.5 bln from a consortium of Nigerian banks for this same project. The Dangote Group is committing US$3.5 bln of its own equity to the project and is seeking an additional US$2.25 bln from development funds. The total cost of the project is pegged at between US$9-10 blnn, a figure that easily ranks among the largest contributions by a private sector group to Nigeria’s economy.
Though the Nigerian government-owned refineries in Port Harcourt, Warri and Kaduna have a installed refining capacity of 415,000 bpd, they operate at less than 30% of their capacity. This means that Nigeria, one of Africa’s top oil producers, relies heavily on foreign refineries.
04-Sep-13 
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