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| Aliko Dangote |
Business mogul Aliko Dangote has received a $997.4
million dollars (about N251.3 billion) grant from the United States Trade and Development
Agency(USTDA) as training support for his proposed refinery, we gathered.
The grant was announced Thursday at the signing of a
Memoradum of Understanding (MoU) between Dangote Group and the USTDA.
According to NAN reports, Dangote Group had in May
declared that the proposed refinery would begin operation in the first quarter
of 2018 with an investment of about $9billion.
Ms Enoh Ebong, USTDA’s Deputy Director, said the agency
was pleased to support the Dangote Oil Refining Company’s efforts to increase
Nigeria’s oil refining capacity. She said it was a “sign of deepening the
United States’ long history of support for vital infrastructure in Nigeria.’’
“Since 1981, the USTDA has been operating in Nigeria with
primary concerns in the area of oil and energy, and we are glad to continue in
that line with what we are doing today,” Ebong said.
Aliko Dangote, the Chairman of the Dangote Group, lauded
USTDA for its assistance toward the takeoff of the refinery. He said the aspect
of training and capacity development was vital to the success of the project.
Dangote Group is developing a new $9 billion oil refinery
which will produce 500,000 barrels of oil per day.
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| The Refinery |
The refinery, to be located in Lagos, will cut reliance
on international markets for Africa’s largest oil producer, which imports more
than 80 percent of its fuel needs.
“By the third quarter of 2017, we expect to be looking at
commissioning,” Mansur Ahmed, Dangote Industries Ltd’s executive director of
stakeholder management and corporate communications, told Reuters at an African
refiners conference in Cape Town.
The refinery is being designed to process Nigerian crude
mix and produce products conforming to Euro V fuel specifications, as fuel
demands across the continent are forecast to rise rapidly with many countries
enjoying strong economic growth.
Poor infrastructure, competitive global markets and
financial constraints have traditionally held back Africa’s refining capacity,
while fuel subsidies in Nigeria are also an issue, said Ahmed, who spoke on
behalf of Aliko Dangote.
Ahmed said the refinery, which is being funded by debt
and equity, including a $3 billion commitment from Dangote himself, could list
in future should additional capital be needed.
The refinery will be completed
in 2017.
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