Aliko Dangote, founder of Dangote Group and Africa’s richest man, revealed that he has repaid $2.4 billion of the $5.5 billion loan taken for his $19 billion refinery in Lagos.
Speaking at the Afreximbank Annual Meetings in Nassau, The Bahamas, Dangote disclosed that his 650,000-barrel-per-day refinery will serve as Nigeria’s strategic reserve, according to This Day Newspaper.
Dangote explained that the loan was secured based on the company’s balance sheet. “We borrowed just over $5.5 billion. We have paid a significant amount in interest due to project delays caused by land issues and lengthy sand-filling processes.
Despite these challenges, we began construction in 2018 and have repaid $2.4 billion in interest and principal. We now owe approximately $2.7 billion,” he stated.
He expressed gratitude to Afreximbank and Access Bank for their support, noting that many doubted the project’s feasibility. He emphasised that the vision would have failed without their backing, criticizing foreign banks for their lack of interest in supporting Africa’s development.
Dangote admitted he anticipated resistance but underestimated its intensity, likening local and international opposition to a powerful “mafia.”
He said, “I knew there would be a fight, but I didn’t realize how strong the oil mafia is. They tried all sorts to stop the project.”
Describing himself as a lifelong fighter, Dangote recounted that during the COVID-19 pandemic, some international banks attempted to push his company into loan default to derail the project. However, support from banks like Afreximbank prevented this.
Additionally, Dangote announced plans to enter the steel industry, aiming to use only Nigerian-produced steel to ensure self-sufficiency and reduce reliance on imports.
