Dangote Pays 70% of 90billion naira Loan from CBN

The Governor of the Central Bank of Nigeria, Godwin Emefiele, announced during the refinery’s inauguration that the Dangote Group has repaid 70 percent of the loans it obtained from the central bank for the construction of its oil refinery. Emefiele made this disclosure on Monday while attending the commissioning ceremony.

Initially projected to cost approximately $9 billion, the refinery’s expenses escalated, ultimately reaching a total of $18.5 billion. Emefiele highlighted that the commercial loan segment of the project was primarily financed by domestic banks, with the remaining portion being provided by foreign banks. Furthermore, he mentioned that the Central Bank of Nigeria also contributed around N125 billion to cover domestic currency requirements and ensured the availability of foreign exchange (FX) for purchasing imported equipment.

Emefiele expressed his optimism that, with the new administration in place, Nigeria would no longer need to import petroleum products, fertilizers, and petrochemicals. This shift in dependency on imports is expected to save the country more than $26 billion.

In summary, Governor Godwin Emefiele revealed that the Dangote Group has repaid 70 percent of its loans from the Central Bank of Nigeria for the construction of its oil refinery. The project’s cost increased from an initial estimate of $9 billion to a final total of $18.5 billion. Domestic and foreign banks were responsible for financing the commercial loan portion, while the Central Bank of Nigeria provided funds for domestic currency requirements and ensured the availability of foreign exchange. Emefiele expressed confidence that Nigeria, under the incoming administration, would achieve self-sufficiency in petroleum products, fertilizers, and petrochemicals, resulting in substantial cost savings for the country