Africa’s most affluent individual, Aliko Dangote, has revealed that numerous entities, both domestic and international, made concerted efforts to obstruct the operations of the Dangote Refinery, which has a daily capacity of 650,000 barrels.
Addressing attendees at the annual meetings of Afreximbank (AAN) and the AfriCaribbean Trade and Investment Forum in Nassau, The Bahamas, on Wednesday, Dangote disclosed that he has already repaid approximately $2.4 billion of the $5.5 billion borrowed to construct his $19 billion refinery.
The tycoon remarked that many skeptics anticipated the failure of the project and acknowledged that without the backing of Afreximbank and Access Bank, the vision would have faltered.
Dangote stated: “We managed to secure the funding based on our financial standing. The total loan amount was slightly over $5.5 billion. However, we incurred substantial interest costs due to project delays caused by land acquisition challenges and prolonged sand-filling activities. Nearly five years passed without significant progress.”We actually commenced construction in 2018. We borrowed the aforementioned amount and have since made significant interest and principal payments totaling around $2.4 billion. We have made commendable progress and now have an outstanding balance of approximately $2.7 billion. So, we have achieved remarkable progress for a project of such magnitude.”
Additionally, Dangote underscored the pivotal role of financial institutions such as the African Finance Corporation (AFC) and Afreximbank in catalyzing industrialization across the African continent, emphasizing their unique understanding of the challenges confronting the region.
He contended that foreign financial institutions have displayed a lack of interest in fostering Africa’s growth, revealing that some covertly attempted to induce loan defaults during the COVID-19 pandemic.
Characterizing the situation as profoundly concerning, Dangote expressed that proposing international project financing to these banks would be met with stringent demands, akin to requesting his great-grandmother’s birth certificate.
‘Those profiting from petroleum imports are resisting change’
Responding to inquiries regarding the availability of crude oil feedstock from international oil companies (IOCs) for his refinery, Dangote suggested that stakeholders benefiting from petroleum imports are reluctant to relinquish their lucrative positions.
“In an environment where individuals have thrived on substantial profits for over three decades, the notion of such profits diminishing is met with resistance rather than support,” he remarked.
“And that is precisely the challenge we are currently navigating. While the country, the sub-region, and the broader continent of sub-Saharan Africa stand to benefit significantly from this refinery, opposition is expected in the form of disruptions in crude supply and product purchases. However, I view these as transient obstacles. We will overcome them.”
Dangote acknowledged the existence of resistance but admitted to underestimating its intensity.
“I was prepared for opposition, but I did not anticipate the extent of resistance posed by the oil mafia, which surpasses that of drug cartels. This is a stark reality,” he stated.
“The local and international mafias made multiple attempts to sabotage the realization of the refinery.”
Identifying himself as a lifelong combatant, Dangote affirmed that these mafias have employed various tactics to thwart his endeavors.
“I have been a fighter my entire life. It is ingrained in me to confront challenges,” he remarked.
The magnate asserted that the battle continues, but he remains optimistic about prevailing with the support of the populace and the government.
Dangote stressed the imperative for Africa to produce what it consumes, lamenting the absence of Western support for the continent.
