What It Means As Dangote Needs Additional N900bn To Deliver Refinery Project
The richest man in Africa, Aliko Dangote is reported to be in need of an additional $1.1Billion – the equivalent of about N900billion – to meet the deadline of delivering his refinery project at the appointed time.
Mr Dangote’s big money refinery is situated in Lagos State.
Fitch, the global rating agency made this assertion in its recently released report on Dangote Industries Limited (DIL) and its operations.
The billionaire businessman and his enterprise – Dangote Industries Limited (DIL)- are said to have promised that the refinery will be delivered by 2023, and most importantly before the expiration of President Muhammadu Buhari’s second term tenure.
But the just-released report by the rating agency indicated that the possibility of that happening is very slim.
The international agency stated this against the reality that Dangote Industries Limited (DIL) already has an ”estimated total external group debt of USD3.8 billion” to contend with.
This appears to be a treat of sort to Dangote’s anticipation to deliver the refinery in good time, the Fitch report indicated.
Despite the agency assigning Dangote Industries Limited (DIL) a Nigerian National Long-Term Rating of ‘AA(nga)’ with a Stable Outlook and “an expected National rating of ‘AA(EXP)(nga)’ to the senior unsecured notes to be issued by DIL’s SPV, Dangote Industries Funding Plc” Fitch stated that hope of DIL getting need fund for the timely completion of the refinery project that is capable of solving the problem of the nation’s dependence on fuel importation appears unrealizable.
This is thanks to the huge debt burden on Dangote Industries Limited “a diversified conglomerate in Nigeria with a leading share in the cement business and a future key operator in the petrochemical industry through its fertiliser and oil refinery business. Its strategy is to gradually establish a downstream industry in Nigeria and be the largest urea producer in Nigeria. It also aims to make Nigeria a net exporter of refined petroleum products and petrochemicals by 2026”.
The agency in it’s report mentioned the sale of Dangote cement bonds and further sales of stakes in the refinery as a possible way out.
Interestingly, NNPC limited already acquired 25% stake at $2.5 billion in the refinery.
