Dangote plans Nigeria's largest oil refinery

Dangote Group has received a loan toward a $9 billion project that will give Nigeria its largest oil refinery and petrochemical and fertilizer complex, reducing the country's reliance on international markets. Aliko Dangote, president of Dangote Group, signed a loan worth $3.3 billion from 12 Nigerian and international banks toward the project which will be built in Nigeria's southwest.

"At the completion of these projects we expect Nigeria to become not only self-sufficient in fertilizer and refined petroleum products but indeed to become recognized as a leading exporter of these products," Dangote said at the signing.

Nigeria is Africa's biggest oil producer, and is a top supplier of crude to the U.S., but the West African country has to import most of its fuel because of decrepit refineries unable to meet the nation's demand for gasoline due to years of mismanagement and sabotage.

The 400,000 barrels-per-day oil refinery and complex will become operational by 2016, the company said. The plant will also produce 2.8 million tons of urea for fertilizing crops and to produce polypropylene, used to make plastics, a statement said.

Dangote said the company is still seeking an additional $2.5 billion in development funds to augment the $3.5 billion of its own equity put into the project. The $3.3 billion loan deal was led by Standard Chartered and Nigeria's Guaranty Trust Bank.

Dangote's estimated worth is $16.1 billion according to Forbes, which has also ranked him among Africa's richest men for the past few years. The Nigerian has made his wealth in cement, flour and sugar.

NNPC Gets Presidential Nod on $1.5 billion Loan

President Goodluck Jonathan has given his consent to the Nigerian National Petroleum Corporation (NNPC) to secure a $1.5 billion syndicated loan from Nigerian and international lenders led by Standard Chartered Bank Plc, to enable it to settle its huge indebtedness to foreign oil traders.

To support its decision to borrow, NNPC said the law establishing the corporation authorizes it to borrow in the exercise of its functions. Sections 6 (1)(c) and 8 (1)(2) of the NNPC Act states:  “The corporation, in fulfillment of its duties can enter into contracts or partnerships with any company, firm or person, which in the opinion of the corporation will facilitate the discharge of the said duties under this Act.

“Subject to the other provisions of this section, the corporation may from time to time borrow by overdraft or otherwise howsoever such sums as it may require in the exercise of its functions under this Act and the corporation shall not, without the approval of the National Council of Ministers, borrow any sum of money whereby the amount in aggregate outstanding on any loan or loans at any time exceeds such amount as is for the time being specified by the National Council of Ministers.”

Rwanda gets new $12m loan from OPEC

The OPEC Fund for International Development (OFID), a financial arm of the petroleum group, has approved a supplementary $12million loan (about Rwf7.3billion) to the Government of Rwanda that will be used to expand electricity to rural Rwanda.

The OPEC Fund for International Development (OFID) is an inter-governmental financial institution established by the 12 OPEC member states. The latest loan to Rwanda is only one among several others, and grants over the past years for infrastructure.

The Rwanda electricity project will also target extending the power grid to priority public institutions such as schools and health centers in urban and peri-urban areas. Densely populated rural areas presently unconnected to the grid will also be on the menu of the project. In total, about 310,000 households have access to electricity in Rwanda. According to the Ministry of Infrastructure, Water and Energy, about 14 percent of the country’s population currently has access to electricity. Government wants that up to more than 16 percent by 2015.

At the moment, there is a Tunisian company that has been extending the power grid to rural areas – mainly in the east.