Rising Debts, Long Delays Plague Nigeria’s Dangote Refinery Project
According to an analysis by the Money Management Series, Dangote Oil Refinery, a 650,000-barrel per day (BPD) integrated refinery project under construction in the Lekki Free Zone, Lagos, Nigeria, was expected to commence production in 2016 with $3.3 billion financing secured in 2013.
With the refinery now projected to commence operations in 2025, Dangote Group’s indebtedness to financial institutions is estimated to hit $8.4 billion by 2025 reports saharareporters.com
Presently, this debt burden has risen to $7 billion with debt servicing of almost $700 million per annum.
The completion date of the refinery has been moved eight times. With these incessant delays, some financing banks are already calling in their loans amid fears of liquidity crisis, while others are elated by the guarantee of huge interests to be recouped as soon as the refinery comes on stream.
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