Aliko Dangote borrows $3.3billion from 12 banks to build oil refinery

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12 local and international banks have loaned Africa's richest man and foremost industrialist Aliko Dangote $3.3 billion to build Nigeria’s biggest petroleum refinery and petrochemical/fertilizer plants.

The banks are: Standard Chartered Nigeria, Guaranty Trust Bank, Fidelity Bank, Ecobank Nigeria, United Bank for Africa, Access Bank, Zenith Bank, Standard Bank of South Africa, Diamond Bank, First Bank Nigeria, First City Monument Bank, and FirstRand Bank. 

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Dangote signs multibillion dollar deal with Banks to build oil refinery in Nigeria

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Dangote to site $8bn refinery in Olokola FTZ

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Indications emerged on Wednesday that the $8bn refinery proposed by Africa’s richest man and President, Dangote Group, Alhaji Aliko Dangote, would be located at the Olokola Free Trade Zone, Ondo State.

A senior official of the company, who asked not to be named because he was not authorised to speak on the matter, told our correspondent that the refinery would be located in the OFTZ.

One of the factors considered for the location of the refinery, according to the source, is that it is the biggest deep seaport in the country and other big industries are located there; besides, Ondo is one of the oil producing states in the country.

Dangote To Build $8bn Oil Refinery

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Another chapter will this year be opened in the downstream sector of the petroleum industry, when business mogul Alhaji Aliko Dangote kicks off his plan to establish a refinery in the country.

The federal government had, in 2011, granted approval to 19 multinationals for the setting up of private refineries in the country, but none of them has come on stream due to the regulation of the price of fuel in the country.

Though details of where the refinery will be sited and its capacity were yet to be made known, work on the refinery, which will cost $8 billion, will begin this year.

At a breakfast meeting with some senior editors to mark his 57th birthday in Lagos, Alhaji Dangote said work will start on the refinery once his company secured the final approval from the federal government.

FG Skips Planned Refinery Projects - Jonathan Must Tackle Fuel Subsidy Corruption–Labour

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Eleven months after promising to build three new refineries for the country, the Federal Government may have dumped the plan. Saturday PUNCH investigations showed that the FG may have dropped the idea because of the unresolved issue of deregulation of the downstream sector of the petroleum industry.
This development came to the fore as organised labour expressed surprise at President Goodluck Jonathan’s N161bn supplementary budget on fuel subsidy for 2012.