TheCable

The board of directors of the African Development Bank (AfDB) has approved a $300 million loan facility for Dangote Group to enable the conglomerate boost fuel supply and fertiliser production in Nigeria.

The loan was approved for Dangote Industries Ltd for the construction and operation of Greenfield crude oil refinery and Greenfield fertiliser manufacturing plant.

“Both projects are expected to help Nigeria on Forex savings of $65 billion through import substitution and provide revenues for the government in taxes and fees,” AfDB said.

“The projects will also create over 30,000 temporary jobs during construction and 2,900 direct jobs during operation, which will complement the bank’s ongoing effort to support the federal government in the implementation of the Agriculture Transformation Agenda.”

The project would allow Nigeria, which currently relies on imported petroleum products and fertiliser, to progressively become self-sufficient and transformed into a major exporter while supporting job creation.

The projects are also expected to add value to local natural resources, double the country’s refining capacity and reduce the current imports of fuel into Nigeria by about 80 per cent, contributing a large share to the Gross Domestic Product and accounts for the country’s revenue and foreign exchange earnings.

Nigeria, the first crude oil producer in Africa with about 2.2 million barrels per day, now imports refined petroleum and fertiliser products, while Dangote Group, which started as an importer of finished products in 1970s, is now a diversified conglomerate with business interests in the manufacturing sector.