Dangote Denies Using CBN’s FX to Fund Refinery, Says Firm Got $2.7 Billion Loan from CBN in 10 Years
- Aliko Dangote, chairman of the Dangote Group, has debunked claims that his refinery is responsible for FX scarcity in Nigeria
- Dangote disclosed that the refinery was primarily funded via his company’s resources, with little funding from external sources
- He disclosed that the company received about $2.7 billion in loans from the CBN, which would be repaid via dividends and payments
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The chairman of the Dangote Group, Aliko Dangote, has disclosed that his company received $2.7 billion in loans from the Central Bank of Nigeria (CBN) to finance the refinery.
The Nigerian billionaire disclosed this in a statement at the refinery recently in Lagos amid an ongoing feud with Nigeria's regulatory authorities.
Source: Getty Images
Dangote Refinery received $2.7 billion in loans from CBN
He said that the refinery was funded via his Firm’s resources, with little funding from external sources.
According to him, he chose to sidestep project financing due to the challenges of securing funds from international lenders.
He said the company received an allocation from the CBN amounting to $2.7 billion between 2013 and 2023.
Dangote explained that the apex bank still owes the company about $200 million in forwards, which it has yet to collect.
Dangote promises to refund CBN loans
Dangote said:
“Out of the $2.7 billion we still have more than $200 million of forwards that we’re yet to collect from the CBN. So, it’s the total of $2.5 billion we got from the CBN in real cash which was paid in terms of interest and principal payment.” Dangote said.
Africa’s richest man debunked claims that the refinery is responsible for CBN’s FX account depletion.
He said the funds would be returned to the CBN via dividends and payments as soon as the refinery becomes operational and profitable.
“Dangote Industries, as soon as they get their dividends, are bringing that money back to sell in the local market. They’re bringing that money back into Nigeria.
“There’s no money we’ve taken away from Nigeria. And the one that we took, we’ll return it. So people should understand,” Dangote said.
Dangote fights NNPC, NMDPRA
Reports say the billionaire businessman had been in a row with Nigeria’s oil regulators over the $20 billion refinery.
Dangote accused NNPC officials of operating blending plants in Malta, where they allegedly imported inferior petroleum products into Nigeria with fake certificates.
Last week, Farouk Ahmed, the chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA), accused Dangote and other refineries in Nigeria of producing inferior diesel laced with high sulphur.
The Dangote Refinery Management debunked Ahmed’s statement, saying the facility’s petroleum products are 80% superior to imported ones.
Dangote assured Nigerians that Premium Motor Spirit (PMS), popularly called petrol, from the refinery would be available in the Nigerian market in August.
Dangote Refinery to disrupt over 90 European refineries
Legit.ng previously reported that Dangote Industries Limited (DIL) has condemned a report criticizing the quality of its products, stating that its diesel is 80% superior to the ones imported from abroad.
The company’s spokesman, Anthony Chiejine, disclosed this in a statement on Friday, July 19, 2024, and called the reports mischievous and meant to destroy the company’s reputation.
The company was reacting to a video in which the Chief Executive Officer of Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, claimed that local refineries, including the Dangote refinery, produce inferior products compared to imported ones.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
