Gulf Oil and Gas accountACCOUNT

AfDB Approves $300m Loan to Boost Fuel Supply and Fertilizer Production in Nigeria

Source: www.gulfoilandgas.com 6/17/2014, Location: Africa

Share |
The Board of Directors of the African Development Bank (AfDB) approved on 13 June 2014 a loan of USD 300 million to Dangote Industries Limited for the construction and operation of a greenfield crude oil refinery and a greenfield fertilizer manufacturing plant.

Both projects will produce for consumption in Nigeria and neighboring African countries. The project will allow Nigeria, which currently relies on imported petroleum products and fertilizer, to progressively become self-sufficient and transformed into a major exporter. Ultimately, the project will act as a catalyst to support job creation.

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 first crude oil producer in Africa, with a production close to 2.2 million barrels per day. Paradoxically, the country 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.

The projects will add value to local natural resources, double the country’s refining capacity, reduce by more than 80% current imports of fuel in the country and eliminate fertilizer imports. The projects are expected to help Nigeria on forex savings of $ 65 billion through import substitution and provide revenues for FGN (taxes and fees).

The projects will also create over 30,000 temporary jobs during construction, and 2,900 direct jobs during operations. The projects will compliment Bank’s ongoing effort to support FGN for the implementation of the Agriculture Transformation Agenda (ATA).

For more information about related Opportunities and Key Players visit West Africa Projects

Financials and Investment News in Nigeria >>

Oman >>  9/18/2018 - Duqm Refinery launched its In-Country Value (ICV) Programme Opportunities Forum at the Crowne Plaza Hotel in Duqm. The launch of the programme coincid...
Vietnam >>  9/17/2018 - SOCO has signed a new US$125 million Reserve Based Lending Facility (“RBL”) secured against the Group’s producing assets in Vietnam. In addition to th...

United Kingdom >>  9/12/2018 - EnQuest switched from plans to sell a stake in its flagship North Sea oilfield to borrowing money against it after two sets of sale talks had to be ab...
Egypt >>  9/4/2018 - Egypt has signed contracts with two global banks to hedge against fluctuating global oil prices, a senior government official told Reuters. ...

Tanzania >>  9/3/2018 - Wentworth is pleased to inform shareholders that payments received during August 2018 for gas sales generated from the Mnazi Bay Concession in Tanzani...
Russia >>  8/29/2018 - Russia’s second-largest oil producer, Lukoil, reported a 20 percent rise in second-quarter net profit helped by stronger oil prices and a weaker roubl...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

 

Oil & Gas Companies in Nigeria >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.