It cost Aliko Dangote $18.5 billion to build the Dangote Petroleum Refinery, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has revealed.
According to Emefiele, on Monday, 22 May, the cost of building the Dangote refinery skyrocketed during construction, rising from the $9 billion the billionaire had previously budgeted for in 2013 when he was floating the idea.
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The CBN chief disclosed that Dangote Group partnered with Deposit Money Banks (DMBs) in Nigeria and outside the country to source debt financing.
FTN gathered that debt financing from local and international banks accounted for 50 per cent of the capital invested in Dangote Refinery, with the businessman bearing the burden of the remaining 50 per cent.
Although, the debt owed by Dangote Group has since been reduced to $2.7 billion after the company, owned by the cement and flour investor, repaid $6.3 billion out of the total $9 billion debt finance.
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Emefiele said Dangote Group made part payment before President Muhammadu Buhari commissioned the refinery today.
“The commercial loan component of the project was financed by domestic banks with the balance from foreign banks.
“I am delighted to announce that the Dangote Group paid down some portion of commercial loans before the refinery’s commissioning. As of today, total loans outstanding have dropped from over $9 billion to $2.7 billion,” the CBN governor disclosed.
He said the repayment shows the creditworthiness of the Dangote Group: “This reflects the astute creditworthiness and commercial capability of the Dangote Group.”
Emefiele also applauded Nigerian banks for their effort in ensuring the completion of Dangote Refinery by participating in the debt finance round: “Please permit me to appreciate all the participating local banks, who provided immense support to the refinery project because they were aware of the importance of the project.
“Even when interests and principal payments were almost overdue, they were patient.”
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