Africa’s wealthiest man, Aliko Dangote, has signed a multi-billion dollar deal with banks to finance the building of an oil refinery in Nigeria.
The refinery would be the largest in Africa, turning Nigeria into a petroleum exporter, he told the BBC.
According to him, the refinery, which would become operational in 2016, would be built in the south-west and create “thousands” of jobs. He also believes the refinery will “see Nigeria exporting petroleum products”.
Nigeria is Africa’s biggest oil producer but lacks refining capacity and has to import most of its fuel. Although there are two refineries in Port Harcourt, neither runs at full capacity.
Mr Dangote signed a $3.3bn loan deal with local and foreign banks to build the refinery, as well as fertiliser and petrochemical plants. The entire venture would cost $9bn, with $3bn in equity from Dangote Industries and $6bn to be raised in loan capital.
The initial loan facility was co-ordinated globally by Standard Chartered and in Nigeria by Guaranty Trust Bank, London’s Financial Times newspaper reports.
Mr Dangote made his fortune in cement, flour and sugar. He is worth an estimated $16bn (£10bn) and has topped the Forbes list of Africa’s richest men for the past three years.