President of Dangote Group, Aliko Dangote, has given reasons why his pan-African conglomerate is building the continent’s largest petroleum refinery and fertilizer plant. Speaking yesterday in the Nigerian capital Abuja, Africa’s richest man said the $9 billion project would “further entrench Africa’s role on the global map as not only a valued contributor for natural resources, but also a competent manufacturer of refined products and fertilizer.”

“As a result, several African nations will be less reliant on importing fuel and fertilizer from foreign markets, reducing the negative impact of negotiating terms within increasingly turbulent international markets,” Dangote added while speaking at the signing of an unprecedented jumbo term loan agreement of $3.30 billion with a consortium of both international and local banks for the purpose of constructing the plants in Nigeria.

The refinery, according to Dangote, will further create some thousands of job opportunities both direct and indirect and tt will trickle down to every family and reduce unemployment in the country.

He stated that the Dangote Group would be ready to delve into sectors that are capable of generating the much needed jobs and urged other investors to have abiding faith in the nation’s economy.

The plants will generate up to 9,500 direct and 25,000 indirect jobs, in addition to reducing current volumes of refined fuel imports by around 50 per cent and effectively stopping the importation of fertilizer. The USD9 billion project will be financed by USD3 billion equity and USD6 billion loan capital.

The loan agreement signing between Dangote and a consortium of 12 local and international banks was the first tranche of loans secured by Dangote, comprising USD3.3 billion. This first facility was jointly co-ordinated by Standard Chartered Bank as the Global Coordinator, and Nigeria’s Guaranty Trust Bank PLC as the Local Coordinator.

With the refining capacity expected to reach 400,000 barrels of crude oil per day and producing a variety of refined fuel products from local crude resources, Nigeria will cut its current volumes of imported fuel products by a massive 50 per cent. The 2.8 million tonnes of urea will be channelled into growing the local agriculture sector which is essential in producing healthy crops and promoting Nigeria and West Africa’s agricultural development. The Petrochemical plant will also produce Polypropylene which is a common component of most plastic and fabric products, for example it is used in various forms of packaging, ropes and agro-sacks.

Elated at the development, Vice President Namadi Sambo, who was a special guest at the ceremony held at the upscale Transcorp Hilton Hotel, applauded the Dangote Group for supporting the economic agenda of President Goodluck Jonathan’s administration, saying the the government has created the enabling environment for businesses to thrive in the country. He commended the Group for gingering the economy.

Also speaking, Petroleum Minister, Deziani Alison-Madueke, said the Dangote refinery is for the whole world to note that Nigeria economy is working and that it will open the floodgate of opportunities.

In his own comment, the Governor of Central Bank (CBN) Governor, Sanusi Lamido Sanusi, stated that refinery deal is a big one in the history of Nigeria, which also shows that Nigerian banks are healthier while attributing the development to CBN’s banking reforms.

He said it was time for Nigerian government to discourage importation and encourage local manufacturing.

On her part, the CEO of Standard Chartered Bank in Nigeria, Ms Bola Adesola, said: “Standard Chartered is proud to support the Dangote Group in a project which will significantly boost Nigeria’s economic productivity and create valuable jobs with specialist skills from key growth sectors. This project is an historic example of self-empowerment and leadership for the continent as a whole – and is made possible through effective partnerships between the Nigerian private sector, Government and international financial institutions. Standard Chartered remains committed to being here for good in Nigeria, and the region.”

The Managing Director of GTBank, Segun Agbaje, said: “This is the largest syndication by Banks in Nigeria and it is being undertaken with the knowledge that the successful implementation of Dangote Refinery and Fertilizer project will have far reaching implications for Nigeria’s economic growth.”

Agbaje further stated that GTBank is very proud to be associated with Dangote Industries on this landmark project and praised Alhaji Dangote for his steadfastness, hard work and genuine desire to see remarkable economic improvement within the country.

The Dangote Group’s main revenue and profit contributor is Dangote Cement Plc (DCP), the leading integrated cement producer in Sub Saharan Africa and largest company on the Nigerian Stock Exchange. Given the cement subsidiary’s strong market share along with its higher profit margins, DCP has been able to maintain a robust financial position, and thus assist in leveraging the Group on a conservative basis to undertake expansion projects on this large scale.

Other participating banks in the oil refinery/fertilizer plant project are Access Bank PLC, Zenith Bank PLC, Ecobank Nigeria Limited, Fidelity Bank PLC. First Bank Nigeria Limited, Standard Bank of South Africa Limited, UBA PLC, FirstRand Bank, First City Monument Bank PLC and Diamond Bank PLC.

•Photo shows Vice President Namadi Sambo (middle), Aliko Dangote (right) and Anil Dua, CEO, Standard Chartered Bank, West Africa, during the term loan agreement signing ceremony . . . yesterday in Abuja.

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