The stage is now set for Aliko Dangote to construct the biggest Petroleum Oil Refinery & Petrochemical/ Fertilizer Plants in Nigeria.
He has entered a deal with a consortium of banks to provide the loan facility. The deal was signed yesterday and it is the single largest debt extended to any Nigerian entity
The plant is expected to cost a total of $9billion which is to be financed by $3 billion equity and $6 billiion loan capital.
Apart from reducing fuel importation by 50% and stopping the importation of fertilizer, the plant is expected to generate up to 9,500 direct and 25,000 indirect jobs,
It will also more than meet local demand for petrochemical products and even provide enough for exports.
This first facility was jointly co-ordinated by Nigeria’s Guaranty Trust Bank PLC as the local coordinator and Standard Chartered Bank as the global coordinator.
At the signing ceremony, the President of Dangote Group, Aliko Dangote announced that with a refining capacity of the proposed refinery, which is 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 channeled into growing the local agriculture sector which is essential in producing healthy crops and promoting Nigeria and West Africa’s agricultural development. The petrochemical plant will produce polypropylene, which is a common component of most plastic and fabric products, used in various forms of packaging, ropes and agro-sacks.
“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,” he added.
The Managing Director/CEO, Guaranty Trust Bank, Segun Agbaje noted that “this is the largest syndication by banks in Nigeria and it is being undertaken with the knowledge that the successful implementation of Dangote Refinery and Fertilizer project will have far reaching implications for Nigeria’s economic growth.”
Agbaje further stated that GTBank is very proud to be associated with Dangote Industries on this landmark project and praised its Chairman, Alhaji Aliko Dangote, for his steadfastness, hard work and genuine desire to see remarkable economic improvement within the country.
Also, the CEO, Standard Chartered Bank in Nigeria, Bola Adesola, added that “Standard Chartered Bank is proud to support the Dangote Group in a project which will significantly boost Nigeria’s economic productivity and create valuable jobs with specialist skills from key growth sectors.
This project is a historic example of self-empowerment and leadership for the continent as a whole – and is made possible through effective partnerships between the Nigerian private sector, Government and international financial institutions. Standard Chartered remains committed to being here for good in Nigeria, and the region,” she said.
The participating banks are Guaranty Trust Bank and Standard Chartered Bank, Access Bank, Zenith Bank, Ecobank Nigeria Limited, Fidelity Bank, First Bank of Nigeria, Standard Bank of South Africa Limited, United Bank for Africa, FirstRand Bank, First City Monument Bank and Diamond Bank.