Nassau, The Bahamas – June 12, 2024: Aliko Dangote, Africa’s richest person and founder of the Dangote Group, revealed on Wednesday that he has already repaid approximately $2.4 billion of the $5.5 billion borrowed to finance his $19 billion refinery near Lagos. Speaking at the Afreximbank Annual Meetings (AAN) and AfriCaribbean Trade & Investment Forum, Dangote highlighted the numerous challenges faced in bringing the 650,000 barrels per day facility to fruition.
Dangote credited the support from Afreximbank and Nigeria’s Access Bank for the project’s survival amidst efforts to sabotage it. He emphasized the essential role of financial institutions like African Finance Corporation (AFC) and Afreximbank in industrializing Africa, noting that foreign banks often lack the commitment to support African growth.
“Without banks like African Finance Corporation, Afreximbank, and others, it would be difficult to industrialize the African continent,” Dangote stated. He criticized foreign banks for their reluctance to assist, citing attempts to push his company into loan default during the COVID-19 pandemic.
The billionaire businessman disclosed that despite borrowing $5.5 billion for the project, delays due to land issues and sand-filling, which took almost five years, significantly increased costs. “We borrowed the money based on our own balance sheet. We have actually, of course, paid interest and some principal, about $2.4 billion. We now have only about $2.7 billion left to be paid,” he said, reflecting on the project’s financial progress.
Addressing the supply of crude oil as feedstock for the refinery, Dangote acknowledged resistance from entities benefiting from the status quo. “In a system where for 35 years people are used to counting good money, and all of a sudden they see that the days of counting that money have come to an end, you don’t expect them to pray for you. Of course, you expect them to fight back,” he remarked.
Dangote further elaborated on the formidable challenges posed by entrenched interests in the oil sector. “I knew that there would be a fight. But I didn’t know that the mafia in oil, they are stronger than the mafia in drugs. I can tell you that. Yes, it’s a fact,” he mentioned, describing various attempts to derail the refinery project.
Despite these challenges, Dangote remains optimistic about overcoming opposition, noting that the support from the government and the populace will be crucial. He highlighted the importance of Africa producing what it consumes, pointing out the lack of strategic oil reserves in Nigeria and the potential of the Dangote refinery to change that.
During the COVID-19 pandemic, some international banks sought to push the Dangote Group into default on its loans, aiming to halt the refinery project. However, with support from Afreximbank, these attempts were thwarted. Dangote also revealed that 25% of the Dangote fertilizer output is exported to the US, with the capacity to meet the needs of Caribbean countries.
Looking ahead, Dangote announced plans to enter the steel industry, aiming to produce all the steel needed domestically in Nigeria. He emphasized the crucial role of domestic investment in attracting foreign investment and driving the continent’s growth.
In terms of power production, Dangote disclosed that his group produces about 1,500 megawatts for self-consumption, avoiding the strain on the national grid. This, he said, is part of their commitment to self-sufficiency and reducing dependency on national infrastructure.
In conclusion, Dangote reiterated his commitment to Africa’s development, asserting that domestic investors are key to making the continent great. “What I keep telling people is that, look, we as Africans, please, don’t be deceived, no foreigner can come and make your continent great. It must be the domestic investors,” he concluded.
