Dangote Refinery in Talks with Foreign Banks for Billions in Crude Oil Financing
Lagos, Nigeria – Aliko Dangote, recognized as Africa’s wealthiest individual, is reportedly initiating discussions with several international banks to secure billions of dollars aimed at crude oil importation. Among the financial institutions involved in these negotiations is the Africa Finance Corporation (AFC), a pan-African development lender, as highlighted in a recent report by the Financial Times.
The Dangote Refinery is working towards acquiring additional crude oil to reach its projected capacity of 650,000 barrels per day. According to the Knightsbridge Strategic Group (KSG)—a consortium of geopolitical intelligence experts from the United States and the United Kingdom—the refinery is anticipated to reach its full capacity by 2025. KSG outlined that upon achieving this benchmark, Nigeria would likely witness long-term decreases in local fuel prices and heightened competition within the European fuel market, positioning the country as a new fuel exporter.
KSG further noted that Nigeria’s shift towards domestic refined oil could allow European nations to mitigate their oil supply risks from Russia. The availability of Nigerian refined oil could lead to an oversupply in markets of countries like Belgium, the Netherlands, and Norway.
However, the report also warns of potential political instability. The government’s inability to resolve ongoing refinery issues might lead to public unrest, including violent protests, especially as any removal of fuel subsidies could exacerbate the current crisis. With the Dangote Refinery poised to transform the landscape of fuel supply, the situation remains closely monitored by stakeholders across the continent and beyond.
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