By Abidemi Samuel
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Aliko Dangote, Africa’s richest man, is currently in talks with various financial institutions to secure billions of dollars in loans. The funds will be used to boost the crude supply for his newly built refinery in Lagos, which has a production capacity of 650,000 barrels per day.
According to sources familiar with the development, Dangote is negotiating with commercial lenders, development banks, oil traders, and other industry participants to raise the necessary funds. The Africa Finance Corporation, a pan-African development lender based in Nigeria, is one of the institutions involved in the talks.
The loan is expected to cover the cost of securing a minimum supply of 300,000 barrels per day, which is estimated to be around $2 billion every 90 days. This move is crucial for the refinery’s success, as it will enable Dangote to meet the country’s demand for petrol, which is estimated to be around 30 to 35 million liters per day.
The development comes amid the recent kickoff of the Naira-for-crude deal between Dangote Refinery and the Nigerian government. The deal is expected to see the Nigerian National Petroleum Company Limited supply 365,000 barrels per day of crude to Dangote Refinery. However, an economist, Kelvin Emmanuel, has stated that the Nigerian government has not effectively implemented the Naira-for-crude deal with Dangote Refinery.
In related news, Dangote Refinery and the Independent Petroleum Marketers Association of Nigeria (IPMAN) recently signed an agreement on lifting 60 million liters of Premium Motor Spirit (Petrol) from the refinery.
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