African tycoon to build $3.3 billion refinery in Nigeria

ABUJA: Africa's richest man Aliko Dangote has secured a loan to build a USD 3.3 billion oil refinery and a petrochemical and fertiliser project in his native Nigeria.

The chairman of Dangote Group says when the projects are completed, Nigeria is expected to become self-sufficient in fertiliser and refined petroleum and may export these products.

Standard Chartered and Guaranty Trust Bank led the signing of the loan.

Nigeria is Africa's biggest producer of crude and exports the same to India but it lacks refineries for crude thereby making the cost of refined products high within the country despite a subsidy regime by the government.

A statement by Dangote Group, a member of Nigeria-India Chamber of Commerce and Industry (NICCI) said the proposed refinery would produce 400,000 barrels per day and will become operational in 2016.

It added that the fertiliser plant will produce 2.8 million tonnes of urea for crop nutrients and polypropylene for plastics production.

Forbes ranks Dangote as Africa's richest man with an estimated wealth of USD 16.1 billion. His companies also produce flour, cement and sugar.