Aliko Dangote, CEO of Dangote Refinery, has disclosed that his company secured $2.7 billion in loans from the Central Bank of Nigeria (CBN) between 2013 and 2023 to finance the refinery. In a statement at his Lagos mega refinery, Dangote explained that the project was mainly funded through the company’s own resources, with limited external assistance. He chose to bypass project financing due to difficulties in securing international funds.
Dangote stated, “Part of the loan was taken by Dangote Industries, a local company. We received a total allocation of $2.7 billion from the CBN, including interest. We still have over $200 million in forwards yet to be collected, so we received $2.5 billion in real cash.”
He emphasized that contrary to popular belief, his refinery did not deplete the CBN’s foreign exchange reserves. The funds from the CBN were minimal and will be returned through dividends and payments once the refinery becomes profitable. Dangote clarified, “The money we took from the CBN will be returned. As soon as we start making money, we’ll begin repaying the loans.”
In an earlier statement, Dangote noted that his company has already repaid $2.5 billion of the $5.5 billion borrowed from various banks to build the refinery. According to a former CBN governor, Dangote has repaid 70% of the CBN loan as of 2023.
Peoplesmind