Dangote Defies Oil Cartels, Repays Refinery Loan

Aliko Dangote

Aliko Dangote repays $2.4 Billion loan for refinery project, announces steel industry venture

Aliko Dangote, founder of Dangote Group, has announced that he has successfully repaid $2.4 billion of the $5.5 billion loan for his ambitious $19 billion refinery project in Lagos. This significant milestone brings him closer to completing the project.

Dangote, Africa's wealthiest individual, revealed that his refinery project faced fierce opposition from powerful oil cartels that attempted to sabotage his efforts. Despite these challenges, he remains committed to seeing the project through to its completion. Speaking at the Afreximbank Annual Meetings in Nassau, The Bahamas, on Wednesday, June 12, Dangote emphasized that his 650,000-barrel-per-day refinery will serve as a strategic reserve for Nigeria, positioning the country for energy self-sufficiency.

He said: “We borrowed the money based on our own balance sheet. I think we borrowed just over $5.5bn. But we paid also a lot of interest as we went along, because the project was delayed because of lack of land, also the sand-filling took a long time. Almost five years or so we didn't do anything.

“We actually started in 2018. We borrowed that much. We have actually, of course, paid interest and some principal, about $2.4bn. We've done very well. We now have only about $2.7bn left to be paid. So we've done very well for a project of that magnitude.”

Aliko Dangote extended his appreciation to Afreximbank and Access Bank for their unwavering support, acknowledging that many had questioned the project's viability. He emphasized that the vision would have failed to materialize without their crucial backing, highlighting the significance of their partnership.

Dangote criticized foreign banks for their lack of interest in supporting Africa's development, noting that he had expected some resistance to his project but underestimated its intensity. He described the opposition as far more severe than anticipated, likening the local and international interests that sought to thwart the refinery's completion to a “mafia”-like entity that made repeated attempts to undermine the project.

Aliko Dangote has unveiled plans to venture into the steel industry, with a strategic goal to utilize solely Nigerian-produced steel and achieve self-sufficiency, thereby reducing the country's dependence on imported steel.

The Dangote Refinery has announced a brief delay in its plans to commence the release of petrol into the market, shifting the timeline from June to July 10-15. According to the company, the postponement is attributed to minor challenges that are currently being addressed, ensuring a seamless and successful launch.

“Well, 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 stated.

Dangote, who characterized himself as a fierce and resilient fighter, revealed that his adversaries employed various tactics in an attempt to thwart his progress, but he persevered and overcame the obstacles.

He said, “But I'm a person that has been fighting all my life. You know, so I think it's part of my life to fight.” 

He added, “As a matter of fact during the COVID period, some of the international banks really were looking forward to making sure that they push us into default of our loans so that the project will just be dead. And that didn't happen with the help of banks like Afreximbank.”

Dangote has declared his intention to venture into the steel sector, with a strategic objective to utilize solely Nigerian-sourced steel, thereby achieving self-sufficiency and minimizing dependence on foreign imports.

The Dangote Refinery has announced a brief postponement of its plans to commence the supply of petrol to the market, shifting the timeline from June to July 10-15, citing minor technical issues as the reason for the delay.