Aliko Dangote, Nigeria’s wealthiest businessman, is soliciting billions of dollars to increase crude oil supplies for his $20 billion refinery in Lagos, Nigeria. According to a report by the Financial Times, Dangote is in talks with banks, development lenders, and oil traders to secure the funds, which he needs to stabilize supply to the refinery and ensure it achieves full operational capacity. Last month, the company reached an agreement with Nigerian authorities for the supply of 365,000 barrels per day of crude oil to the refinery. Given the refinery can refine 650,000 barrels of crude daily, it requires an additional 285,000 barrels to reach full operational capacity. However, securing a supply of 300,000 barrels per day will cost approximately $2 billion every 90 days, hence, the fundraising. The company has already sourced crude from the US and Brazil. It has also initiated discussions with Libya and Angola to supply crude to the refinery.

SOURCE: NAIRAMETRICS