The Dangote Group has said it will sign $5.55bn loan deals with financiers on September 4 for the building of a $9bn refinery and petrochemical complex to be located at the Olokola Free Trade Zone, Ondo State.

The group told Reuters on Tuesday it would borrow $3.3bn for the 400,000 barrels a day refinery expected to double the country's refining capacity by late 2016.

The conglomerate, with business interests in cement, food processing and oil and gas, also said it was seeking another $2.25bn from development funds for the refinery.

When put together, about $5.55bn will be sourced externally from financiers and the group said the loan deals would be signed with the financiers on September 4.

The Chairman, Dangote Group, Alhaji Aliko Dangote, who recently emerged as Africa's richest man, said he would put $3.5bn down as his own equity.

Dangote had in April said he would put down $4bn of his personal fortune to build the refinery, while international financial institutions would raise the balance.

The Dangote Group spokesman, Mr. Anthony Chiejina, who spoke with Reuters, said, "We are not resting on our oars. The complex, including petrochemical and fertiliser plants, could be the single largest contribution to this government's economic transformation agenda."

The 400,000-barrel capacity, experts have said, would almost double Nigeria's current refining strength.

"This will really help not only Nigeria but sub-Saharan Africa. There has not been a new refinery for a long time in sub-Saharan Africa," Dangote had told Reuters in a telephone interview.

Nigeria currently has the capacity to produce some 445,000 barrels per day from four refineries, which operate well below that owing to decades of mismanagement and corruption.

The country relies on subsidised imports for 80 per cent of its fuel needs.

Dangote said the country's ability to import fuel would soon be challenged.

"In five years, when our population is over 200 million, we won't have the infrastructure to receive the amount of fuel we use. It has to be done," he said.

Past efforts to build refineries have often been delayed or cancelled, but analysts have said Dangote should be able to build a profitable Nigerian refinery, owing to his past successes in industry and his strong government connections.

Analysts have said previous attempts to get the refineries going were held back by vested interests such as fuel importers profiting from the status quo.

"The people who were supposed to invest in refineries, who understand the market, are benefiting from there being no refineries because of the fuel import business. Some are going to try to interfere," Dangote said.

He said making a new refinery run at a profit would work even if the government failed to scrap the subsidised fuel price that has deterred others from investing.

Source: the punch. http:///4F15DrkZLw

God bless Dangote for choosing Ondo

BREAKING NEWS: Na wash

It seems the death of Olokola FTZ has been greatly exaggerated ,the politics of now and resource nationalism may not favour the location but if it's going house the first private Refinery in the country then the factor conditions are solid.The lesson here is, while the government is still very much powerful REAL corporate Nigeria is catching up fast and levelling up.We would begin to see business influencing politics rather than the usual, other way around so you would be required to make your business case because " na our oyel" isn't going to be adequate for long.

Ufeolorun: It seems the death of Olokola FTZ has been greatly exaggerated ,the politics of now and resource nationalism may not favour the location but if it's going house the first private Refinery in the country then the factor conditions are solid.The lesson here is, while the government is still very much powerful REAL corporate Nigeria is catching up fast and levelling up.We would begin to see business influencing politics rather than the usual, other way around so you would be required to make your business case because " na our oyel" isn't going to be adequate for long.

The Niger-delta already have refineries anyway,so what the FG should do is privatize it and it will run at full capacity again.
The Akwa-ibom state govt and the rivers state govt have already begun plans to build Petrochemical plants in each of their states and the FG have also released plans to built a $16billion petrochemical plant somewhere in the Niger-delta.
So whether in the short or long run,the Niger-delta which is the source of the raw material,will remain the hub for petrochemical and its allied industries in west africa.
Dangote cannot change that.

The government has no business doing business

Ok . . .and one keeps wandering wether dangote is now the new govt

This article has erronous claims: for instance A new refinery has not been built in west Africa for long time. What abbout the new refineries in Niger republic and Chad.
Also the claim that Dangote just cliched the title of the richest man in Africa, he was on top of that forbes africa list for at least 5 years.

solomon111: The Niger-delta already have refineries anyway,so what the FG should do is privatize it and it will run at full capacity again.
The Akwa-ibom state govt and the rivers state govt have already begun plans to build Petrochemical plants in each of their states and the FG have also released plans to built a $16billion petrochemical plant somewhere in the Niger-delta.
So whether in the short or long run,the Niger-delta which is the source of the raw material,will remain the hub for petrochemical and its allied industries in west africa.
Dangote cannot change that.

are u trying to be defensive? It not necessary. For u and i knw dt:

1. Govt promises take forever!

2. Even if they build $1b worth of reifnery in ur woods, na the chants of , 'our oyel' go purshue all investors!
Bnt be confused, it's d truth!

My big question is that why is everything happening under the clueless President's regime.
Under this clueless President, industries are moving back to Nigeria in Droves.
Under Clueless Jonathan, Agriculture is suddenly experience a massive boom.
Under this clueless GEJ, the trains are experiencing a renaissance.
With all the cluelessness going on, we get to see a complete revamping of 22 airports and building 5 new brand new airports as well as the privatisation of the power sector.

With Jonathan's clueless disposition to everything, we are seeing things happen that haven't happened in 30 years.


Looks like cluelessness is a good thing afterall.

PapaBrowne: My big question is that why is everything happening under the clueless President's regime.
Under this clueless President, industries are moving back to Nigeria in Droves.
Under Clueless Jonathan, Agriculture is suddenly experience a massive boom.
Under this clueless GEJ, the trains are experiencing a renaissance.
With all the cluelessness going on, we get to see a complete revamping of 22 airports and building 5 new brand new airports as well as the privatisation of the power sector.

With Jonathan's clueless disposition to everything, we are seeing things happen that haven't happened in 30 years.


Looks like cluelessness is a good thing afterall.

Investment and business opportunity WILL happen regardless of whether the clueless dumba retardeen GEJ is president or not! However, it could happen at a MUCH slower pace like it is doing right now. Or, when it happens, there are GAINS on one side but losses, leakages and corruption in MANY other sides, the job the retardeen is supposed to be doing! So, 5 steps forward, 10 - 15 steps backwards! Dangote, signs a business deal of $ 6 B = N 900 B for a refinery that maybe lasts 10 years before NEXT big maintenance but the retardeen's USELESS government in July 2013 ALONE oversaw the STEALING of N 365 B, do the maths! It doesn't matter what you say or think, the evidence of the MOST USELESS and CLUELESS president ever in Nigeria, GEJ, speaks for itself!

This is a good development for Nigeria. Private investment are the engine room of economic development in any developed societies and not the charade thats called government ran businesses.
Good job dangote you can site your refinery anywhere that makes economic sense to you company as long as it is in Nigeria,employing nigerians,paying taxes in Nigeria and helping the Nigerian economy.

Afterall the refinery in chad and Niger and other places are own by nigerian fat cats who stole the country's money and invested in foreign countries enriching foreign economies while nigerians languish at home.

since independence nigerian leaders have stolen over $380 billion dollars from the country! where do this money go? to enrich foreign economies while nigerians suffer. This is why i am all in support of Dangote and every nigerian that invests at home.
I pray for more dangote's in nigeria as that will be the game changer for our economy not the ta ta yo yo that the ministry of finance is playing in numbers with the nigerian economy. investment in the real sector of the economy is the way forward.

....this is a good investment but just hope some people wont wake up tomorrow to say Hausa-Fulani's are dominating their state!!

Adm. Yamamoto:


Investment and business opportunity WILL happen regardless of whether the clueless dumba retardeen GEJ is president or not! However, it could happen at a MUCH slower pace like it is doing right now. Or, when it happens, there are GAINS on one side but losses, leakages and corruption in MANY other sides, the job the retardeen is supposed to be doing! So, 5 steps forward, 10 - 15 steps backwards! Dangote, signs a business deal of $ 6 B = N 900 B for a refinery that maybe lasts 10 years before NEXT big maintenance but the retardeen's USELESS government in July 2013 ALONE oversaw the STEALING of N 365 B, do the maths! It doesn't matter what you say or think, the evidence of the MOST USELESS and CLUELESS president ever in Nigeria, GEJ, speaks for itself!

See as you just demolish 2 birds with 1 post.


You demolish the ignorant and clueless poster and GEJ at this same time.


lol...nice move

Austine.E:
....this is a good investment but just hope some people wont wake up tomorrow to say Hausa-Fulani's are dominating their state!!

YES, let dangote foolishly claim any part of land is a no man's land and see what befell him. Though, the typical Hausa man is humble unlike the other loudmouthed parasites feeding from our region.

Austine.E:
....this is a good investment but just hope some people wont wake up tomorrow to say Hausa-Fulani's are dominating their state!!

They never complained abiut domination just pollution

XereX:

YES, let dangote foolishly claim any part of land is a no man's land and see what befell him. Though, the typical Hausa man is humble unlike the other loudmouthed parasites feeding from our region.

Nothing will befell him, he's in south-west, the most peaceful zone in Nigeria. He has been doing his business here for a long time now and there's no wahala.

omonnakoda: They never complained abiut domination just pollution

You know Yorubas can never be dominated or have a chip on their shoulders. To us, an investment like this one its like buying an already well to do man an EXTRA shirt, he will be truly thankful seeing someone helped to add another shirt (or whatever) to his collections which he could and would have done by himself anyway. However, such a person will appreciate the giver (Dangote) in this case. He will make massive financial gains from this investment (and he deserves it, his personal $ 3.5 B is NOT free or dropping from the sky), however, he will also create jobs for thousands of Nigerians, the largest portion which should be his host Yorubas who have prepared themselves by getting degrees and advanced degrees in areas he will NEED! These two will work together to create massive financial wealth for Nigeria by keeping Nigeria money in Nigeria, and making ourselves richer! So Dangote gets his cut, the other banks and investors get a cut, the Nigerian population and Yoruba host states get a cut, the governments get taxes and a better economy, the guy in Sokoto or Anambra is richer because the money that could help the country has not been shipped to Dubai or Swiss bank accounts by Dangote.

KAA BO ALIKO DANGOTE.

XereX:

YES, let dangote foolishly claim any part of land is a no man's land and see what befell him. Though, the typical Hausa man is humble unlike the other loudmouthed parasites feeding from our region.

..inspite of Hausa-Fulani humility,they are been chased and attacked in Osogbo and Ibadan Markets,elsewhere in thesame Oyo state,11 of them were killed!it is unfair...for the sake beans.

And then there are the Lekki and Badagry refineries.

Everything is happening because Goodluck jonathan has cause it so.nothning like this has happened in the last 30yrs of nigeria existence.
This is truely dividence of demorcracy.
With this and other propose refineries bin completed,the price of fuel with reduce drastically and hence,no need for subsidy anymore.
Agric sector is busy with activities,power has bin privatise,sport is witnessing a new look,so many other things are happening.
With GEJ,nigeria will grow higher.
Long live GEJ and naija

Itoroetti :
Everything is happening because Goodluck jonathan has cause it so.nothning like this has happened in the last 30yrs of nigeria existence.
This is truely dividence of demorcracy.
With this and other propose refineries bin completed,the price of fuel with reduce drastically and hence,no need for subsidy anymore.
Agric sector is busy with activities,power has bin privatise,sport is witnessing a new look,so many other things are happening.
With GEJ,nigeria will grow higher.
Long live GEJ and naija

Are you for real? I don't blame you because it seems you learned English Language from either She-popotamus or He-popotamus. Your English scares the sh1t out of me, baby.

Itoroetti :
Everything is happening because Goodluck jonathan has cause it so.nothning like this has happened in the last 30yrs of nigeria existence.
This is truely dividence of demorcracy.
With this and other propose refineries bin completed,the price of fuel with reduce drastically and hence,no need for subsidy anymore.
Agric sector is busy with activities,power has bin privatise,sport is witnessing a new look,so many other things are happening.
With GEJ,nigeria will grow higher.
Long live GEJ and naija

This post is endorsed by me...

Itoroetti :
Everything is happening because Goodluck jonathan has cause it so.nothning like this has happened in the last 30yrs of nigeria existence.
This is truely dividence of demorcracy.
With this and other propose refineries bin completed,the price of fuel with reduce drastically and hence,no need for subsidy anymore.
Agric sector is busy with activities,power has bin privatise,sport is witnessing a new look,so many other things are happening.
With GEJ,nigeria will grow higher.
Long live GEJ and naija

Oil theft is out of control because Gej let it happen.

Corruption is out of control under Gej because he let it happen

Unemployment is out of control because Gej let it happen


Would you like me to keep going on going on and on because we should be way way ahead if not for the clueless and incompetent dullard holding us back......

Dear Praise Singers, Pls Dnt Hijack This Topic!!

plaindealer:

Oil theft is out of control because Gej let it happen.

Corruption is out of control under Gej because he let it happen

Unemployment is out of control because Gej let it happen


Would you like me to keep going on going on and on because we should be way way ahead if not for the clueless and incompetent dullard holding us back......

Gej has only been there for 3 years and he is suddenly the one holding Nigeria back despite decades of gross-misrule in all strata of govt.
Corruption,oil-bunkering,started under GEJ,abi?
You are a retardeen.

payless:


Are you for real? I don't blame you because it seems you learned English Language from either She-popotamus or He-popotamus. Your English scares the sh1t out of me, baby.

must u attack people that do not share ur views huh ,....

solomon111: Gej has only been there for 3 years and he is suddenly the one holding Nigeria back despite decades of gross-misrule in all strata of govt.
Corruption,oil-bunkering,started under GEJ,abi?
You are a retardeen.

come on GEJ sychopnats you MUST take the smooth with the rough!

if you claim the success of 'everything' happening in 3 years you must also take the failures cosidering some policies started way before him

This is a welcome development.

Dangote is a wise man to had known not to plant the Refineries in the Region where he comes from.


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Its good cause it will create new jobs for the unemployed

@least ds will create employment .
Kudos to Dangote