As part of its development finance move, the Central Bank of Nigeria over the years supported critical projects to reflate the economy and drive national growth.
Due to its potential to drive economic growth, the Dangote refinery is one of the critical projects the CBN has invested in especially by provision of credit facility to ensure the project comes to life.
Consequently, the Governor of the Central Bank, Godwin Emefiele disclosed that the Central Bank of Nigeria supported the Dangote Refinery with N125 billion domestic currency cover and another N75 billion loan facility which was facilitated through some selected Nigerian banks.
Emefiele disclosed this on Monday at the event marking the commissioning of the Dangote refinery in Lagos.
“In September 2013, when Alhaji Aliko Dangote announced his plans for the refinery, it was estimated to cost about US$9 billion, of which US$3 billion was projected as equity investment by the Dangote Group and the balance financed through commercial loans.
“Due to an array of factors, the project was eventually completed with a total of US$18.5 billion with funding distributed into 50 percent equity investment and 50 percent debt finance. I am proud to state that the commercial loan component of the project was financed majorly by our domestic banks with the balance sourced from foreign banks.
The Central Bank of Nigeria also partnered, as always, with the Dangote Group in ensuring the successful completion of the project by providing about N125 billion, to cover domestic currency requirements for the venture,” Emefiele explained.
Speaking further, Emefiele added that “The Central Bank of Nigeria, through its various development finance interventions, has continued to support critical sectors of the Nigerian economy to promote a homegrown rebalancing of our economy and foster self-sufficiency.
“Accordingly, since the refinery will backstop our diversification efforts by exporting its surplus refined products, the CBN supported the project through our Small and Medium Enterprise Refinancing and Restructuring Facility (SMERRF).
Under this facility, the sum of N75.0 billion was released for the project through a consortium of banks, in order to bolster value-addition in the real sector, create jobs sustainably, and enhance foreign exchange dynamics,” he said.
