Dangote Group, owned by Africa’s richest man, Aliko Dangote, has signed a $650 million loan from the African Export-Import Bank (Afreximbank) for its oil refinery in the city of Lekki in Nigeria.
According to reports, the seven-year term loan is subject to a five-year moratorium in line with facility term. In an earlier interview with Reuters, Dangote Group Executive Director Devakumar Edwin said the oil refinery would cost an estimated $10 billion and is expected to be completed by December 2019.
He said the company would borrow $3.3 billion for the project, arranged by Standard Chartered Bank. The remainder would be funded by equity and through export agencies, Reuters reports.
The refinery and petrochemical complex is located in 25,000 hectares of swampy land. Once complete, it will be Nigeria’s first private and Africa’s largest petroleum refinery with a projected production output of 600,000 barrels per day.