Monday, June 17, 2024

Dangote Pays Back 70% Of Loan Used In Constructing Refinery

Governor of the central bank of Nigeria, Godwin Emefiele, says the Dangote group has paid back about 70 per cent of the loans it took to construct its mega 650,000 barrels per day refinery.

Emefiele disclosed this during the ceremony to commission the refinery that saw the presence of President Muhammadu Buhari, The Lagos state governor, Babajide Sanwo-Olu and other top dignitaries.

At the event, Emefiele disclosed that the Dangote group has paid down its total loans outstanding on this refinery project from $ 9 billion to $ 2.7 billion today.

Read Also: Dangote Petrochemical Plant Eyes $130bn global polypropylene market

Amidst uncertainties over Nigeria’s fuel subsidy, the Dangote refinery is expected to be the biggest single refinery in the world and will according to the Nigerian economic summit group (NESG), add about $21 billion (N9.7 trillion at the current exchange rate) yearly to the Nigerian economy.

Stakeholders, at the commission of the refinery, expressed concerns that Nigeria’s 445,000 barrels per day refineries, despite being repaired, may become obsolete and difficult to sell as a result of the new Dangote refinery.

Concerns are also mounting as stakeholders, who spoke in separate interviews asked Nigerians to get ready to buy products at a higher price as they insisted that while the new refinery broke the monopoly in the sector, the pricing mechanism would have to change.

Emefiele disclosed this during the ceremony to commission the refinery that saw the presence of President Muhammadu Buhari, The Lagos state governor, Babajide Sanwo-Olu and other top dignitaries.

At the event, Emefiele disclosed that the Dangote group has paid down its total loans outstanding on this refinery project from $ 9 billion to $ 2.7 billion today.

Amidst uncertainties over Nigeria’s fuel subsidy, the Dangote refinery is expected to be the biggest single refinery in the world and will according to the Nigerian economic summit group (NESG), add about $21 billion (N9.7 trillion at the current exchange rate) yearly to the Nigerian economy.

At the commission of the refinery, stakeholders expressed concerns that Nigeria’s 445,000 barrels per day refineries, despite being repaired, may become obsolete and difficult to sell due to the new Dangote refinery.

Concerns are also mounting as stakeholders, who spoke in separate interviews asked Nigerians to get ready to buy products at a higher price as they insisted that while the new refinery broke the monopoly in the sector, the pricing mechanism would have to change.

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