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Dangote gets $300m facility for refinery construction

News » Health and Beauty

24th June 2014

Dangote Industries  Limited has secured a $300 million facility from African Development Bank, AFDB to finance the construction of its crude oil refinery and Greenfield fertilizer manufacturing plant.

According to the AFDB, the loan is designed to help boost fuel supply and fertilizer production in Nigeria.

The AFDB said, “Both projects will help the country in becoming self-sufficient in its local natural resources and improve refining capacity in an attempt to transform into a major exporter in the oil and gas industry.

The AfDB noted that that facility is, however, projected to reduce more than 80 per cent of the country current imports of fuel as well as eliminate the importation of fertilizer.

It noted that, 30,000 of job seeking Nigerians will be empowered. “The projects are expected to create over 30,000 temporary jobs during construction and 2,900 direct jobs during operations to compliment ongoing effort of the Bank to support FGN for the implementation of the Agriculture Transformation Agenda (ATA).

“In addition, both projects are expected to help Nigeria on foreign exchange savings of $65 billion through import substitution, provide revenues for the government in taxes and fees and contributing a large share to the Gross Domestic Product,”

African Development Bank (AfDB), had in April 2014, said it disbursed loans and grants totaling $93 billion (about N14.9 trillion) to member countries between 1967 and 2011.

The report noted that, agriculture and rural development projects accounted for $11.85 billion, representing 12.74 per cent.

It noted that infrastructure, which included transport, water and sanitation, communications and industry got 44 billion dollars or 47.3 per cent of the funds.

“Other beneficiary sectors includes; environment, finance, social and urban development which received the balance of 37.16 billion dollars (40.65 per cent) during the period.

“The Bank recognises the strategic importance of investing in agriculture and food security to promote Africa’s inclusive growth and development agenda.

“Between 1967 and 2011, the African Development Bank Group approved loans and grants to its Regional Member Countries with commitments amounting to 93.01 billion dollars,” the report said.”



Article Credit: Vanguard News

Updated 5 Years ago

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