Dangote plans $12m private crude oil refinery in Nigeria by 2019
Mon Jun 27, 2016 11:11:am National
2K By sosa hills
The $12 billion (N3.4 trillion) oil refinery by Africa's richest man, Aliko Dangote, will become operational by 2019.
Dangote made this known in an interview with Reuters in Lagos at the weekend that the refinery would have a capacity of 650,000 barrels a day.
The refinery, when completed, will boost the efforts of the Federal Government to end the importation of refined petroleum products by 2019.
Currently, over 90 percent of refined petroleum products are imported despite the fact that about 445, 000 barrels per day are reserved by the Federal Government for local refineries.
The four refineries owned by the Federal Government's Nigerian National Petroleum Corporation (NNPC) have remained comatose despite billions of Naira spent on reviving them.
Attacks on crude pipelines to the refineries in Kaduna, Warri and Port Harcourt have further hampered efforts to boost local refining.
But Dangote said: "It will be ready in the first quarter of 2019. Mechanical completion will be at the end of 2018 but we will start producing in 2019."
He said the plant, which will include a $2 billion fertilizer unit, was being funded through "loans, export credit agencies and our own equity".
Some $3.25 billion had come from local and foreign banks, while the Central Bank of Nigeria (CBN) had also chipped in. The IFC, the private sector arm of the World Bank, has lent $150 million for the project.
Dangote made this known in an interview with Reuters in Lagos at the weekend that the refinery would have a capacity of 650,000 barrels a day.
The refinery, when completed, will boost the efforts of the Federal Government to end the importation of refined petroleum products by 2019.
Currently, over 90 percent of refined petroleum products are imported despite the fact that about 445, 000 barrels per day are reserved by the Federal Government for local refineries.
The four refineries owned by the Federal Government's Nigerian National Petroleum Corporation (NNPC) have remained comatose despite billions of Naira spent on reviving them.
Attacks on crude pipelines to the refineries in Kaduna, Warri and Port Harcourt have further hampered efforts to boost local refining.
But Dangote said: "It will be ready in the first quarter of 2019. Mechanical completion will be at the end of 2018 but we will start producing in 2019."
He said the plant, which will include a $2 billion fertilizer unit, was being funded through "loans, export credit agencies and our own equity".
Some $3.25 billion had come from local and foreign banks, while the Central Bank of Nigeria (CBN) had also chipped in. The IFC, the private sector arm of the World Bank, has lent $150 million for the project.
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