Business Dangote's oil refinery loan a medium term one

[jeff juwana]

The $3.3 billion loan secured by Dangote Industries last week to build a 400,000-barrel per day oil refinery and petrochemical plant is said to have a seven-year pay back period. A banker who was part of the negotiation disclosed this, saying that Dangote Group may have to work extra hard to meet the payment terms in the loan agreement documents.
The bank executive, said the pay back period is a huge task due to the challenges faced in Nigerias business environment and infrastructure.
A spokesman for Dangote Group, the umbrella company, told The Press on Friday that the loan was "medium term and they are seeking a further $2.25 billion from development funds for the $9 billion plant project, which will also produce fertilisers.
Dangote Boss, Alhaji Aliko Dangote said the refinery would produce high grade petrol, diesel,aviation fuel,household kerosene and 650000metric tons of polypropylene per annum.He added that his mission was to change the current situation in which Nigeria has become a net importer in her trade r with nations of the world but also of products for which it has comparative advantage. He promised to replicate his success in his cement industry in oil industry
The project is expected to reduce products costs, increase industrialisation and improve the general well-being of the people.