Dangote Industries Limited (DIL) has secured a US$300m facility from the African Development Bank (AfDB) for the construction and operation of a Greenfield crude oil refinery and fertilizer manufacturing plant in Nigeria.
The funds have already been approved by the bank’s board. The output of the two projects will serve both domestic and sub-regional markets. The projects will also ensure the country’s self-sufficiency in refined petroleum products and fertilizers, and progressively transforming the Nigeria into a major exporting economy.
The projects are expected to create over 30,000 temporary jobs during construction and 2,900 direct jobs during operations. They will also compliment the bank’s ongoing effort of supporting Nigeria in the implementation of the agriculture transformation agenda, adding value to the local natural resources, and double the country’s refining capacity, reduce by more than 80% current imports of fuel in the country and eliminate fertilizer imports.
The oil industry in Nigeria contributes a large share to gross domestic product and accounts for the bulk of federal government revenue and foreign exchange earnings.
The country is the leading crude oil producer in Africa, with a production close to 2.2 million barrels per day. Paradoxically, the nation is a big importer of refined petroleum products for its economy as well as fertilizer products.
The Dangote Group was established in the late 1970s and started with importing sugar, milk, flour, fish, rice, cement and iron rods. The group is now a diversified conglomerate with business interests in cement, sugar, salt, port operations, packaging material production and real estate.
