Published: May 8, 2013
Africa’s wealthiest man says funds will go towards Nigerian oil refinery.
Aliko Dangote, Africa’s wealthiest man, says he has secured US$4.5bn to go towards the construction of an oil refinery in Nigeria, the Financial Times reports. Although he did not name the banks involved, he confirmed that two are offshore institutions, the rest Nigerian.
This represents the billionaire businessman’s first move into the refining sector after establishing interests in areas as diverse as cement, sugar and beverages. Despite enjoying abundant hydrocarbon reserves, Nigeria has to import around 70% of the oil it needs to fulfill domestic demand. This is largely due to aging infrastructure and a lack of maintenance, a problem the proposed refinery should help remedy.
The refinery is to be located in south-west Nigeria and would be capable of processing 400,000 barrels of crude per day, according to Sani Dangote, vice-president of Dangote Group.