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HomeTop NewsHow CBN provides N120 bln facility to enable completion of Dangote Refinery...

How CBN provides N120 bln facility to enable completion of Dangote Refinery ~Emefiele

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By Oludare Mayowa

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, in Lagos on Monday said the regulatory bank provided N120 billion in facilities to enable the completion of the Dangote Petrochemical Refinery based in Lekki.

He disclosed that the project, at conception, was estimated to cost about $9 billion, of which $3 billion was projected as an equity investment by the Dangote Group and the balance was financed through commercial loans.

The regulatory bank chief said the projected amount eventually reached $18.5 billion at the time of completion.

Emefiele, who spoke at the commissioning of the 650,000 barrels of oil capacity plant, noted that the commercial loan component of the project was financed mainly by local banks.

“I am proud to state that the commercial loan component of the project was financed majorly by our domestic banks, with the balance sourced from foreign banks,” the CBN Governor declared.

He said the regulatory bank also partnered with the Dangote Group in ensuring the successful completion of the project by providing about N125 billion to cover domestic currency requirements for the venture.

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Emefiele said Dangote Group had started repaying some of the commercial loans before the inauguration of the facility, noting that the outstanding debt of Dangote Group, “following extensive repayments, had dropped from over $9 billion to $2.7 billion.”

Given the processing capacity of 650,000 barrels per day (BPD), the CBN Governor said the refinery was more than able to meet all of Nigeria’s domestic fuel consumption, which is about 450,000 barrels per day, while the excess production will be available for export.

According to him, the refinery is designed to process not only the Bonny Light grade of crude oil but also a wide variety of other crude streams, including many from Africa, some Middle Eastern streams, and US Light Tight oil. He also said the Dangote refinery is equally capable of delivering all types of liquid products, including gasoline, diesel, kerosene, and aviation jet fuel.

Emefiele projected that the Dangote refinery could earn Nigeria foreign exchange savings of between $25 billion and $30 billion annually, stressing that the impact of the savings would be directly reflected in Nigeria’s foreign exchange reserves by reducing the pressure on the country’s balance of payments.

The CBN governor further stated that the Central Bank of Nigeria, through its various development finance interventions, would continue to support critical sectors of the Nigerian economy to promote a homegrown rebalancing of the Nigerian economy and foster self-sufficiency.

According to him, the Dangote refinery, which is adjudged the largest refinery in Africa, along with the fertilizer plant, would assist Nigerians in their pursuit of agriculture as a real business and contribute to the stabilization of the country’s oil sector.

He also commended Alhaji Aliko Dangote and the Dangote Group for their tenacity and unwavering commitment to completing the mega project, notwithstanding various challenges and constraints that they encountered along the way.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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