Nigerian billionaire businessman, Mr Aliko Dangote, is seeking to sell a 10 per cent stake in his refinery while also planning to borrow an additional $5 billion to expand the oil facility based in the Lekki area of Lagos.
The loan plan was disclosed by Mr George Elombi, the new president and chairman of the African Export-Import Bank (Afreximbank), who replaced Mr Benedict Oramah as the president of the bank, recently.
Speaking during his inaugural address at Afreximbank’s investiture ceremony in Cairo, Mr Elombi stated that Mr Dangote had personally disclosed the plan earlier to him.
He then assured that the Africa-focused trade bank would explore all possible financing options.
“Alhaji Dangote indicated to me this morning that he will be coming for an additional $5 billion to expand the refinery. We have agreed to look for the money wherever it is, including in Afreximbank and your individual accounts. We believe it has to be done,” he disclosed.
“If it is done, it will double his production and cut prices by 50 per cent, maybe for Nigeria and for all the countries along this West African coast. This will be a significant change,” he told the gathering.
The $20 billion Dangote Refinery, which is largely financed by Afreximbank, has been described as a transformative project for Nigeria’s energy landscape. It has disrupted local markets as well as foreign markets.
Also, Mr Dangote told the Financial Times he would be willing to sell up to 10 per cent stake in the refinery.
This comes with a clause, saying “depending on what the Nigerian market can take.”
According to the publication, this will make the refinery in the biggest in the world, taking over India’s Reliance Industries’ refinery which has an output of 1.4mn barrels a day.
“This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential, and our commitment to building energy independence for our continent,” he said.
Business Post reports that the 650,000 barrels per day refinery has yet to reach optimal production levels since it was opened in 2023.