![\"\"](\"https:\/\/nigeriastandardnewspaper.com\/a\/wp-content\/uploads\/2022\/05\/aliko-final.jpeg\")
<\/a><\/p>\nAccording to the report, Dangote has invested all his cash and even borrowed to finance the refinery project, <\/span>The report claims that the only way Dangote can raise money is through the sale of bonds by his cement company, Dangote Cement.<\/span><\/p>\n A new report claims that Africa\u2019s richest man, Aliko Dangote, does not have the kind of money needed to complete his refinery by 2023<\/span><\/p>\n The report published by Fitch, the world\u2019s biggest global rating agency, alleges that the Nigerian billionaire requires an additional $1.1 billion (900 billion) to complete the refinery but has invested all his cash and even borrowed to finance the refinery project.<\/span><\/p>\n According to the report, the Dangote refinery project is still on track to be completed by 2023 and requires an additional USD1.1 billion capex in 2022 to be partly funded by the new bond.<\/span><\/p>\n The report adds that Dangote Industries Limited, DIL, is planning to establish a local bond programme amounting to USD750 million to partially finance the completion of its refinery and petrochemical plant. DIL’s subsidiaries – Dangote Oil Refining Company Limited (DORC) and Dangote Fertilizer Limited, DFL -will be co-obligors under the proposed programme.<\/span><\/p>\n \u201c<\/span>Funding for the completion of the refinery project is expected to be partly covered by proceeds of the new bond. If the transaction is not successful, or should completion costs overrun or market conditions in the cement or urea sector deteriorate materially, we do not believe that DIL’s existing creditors would have further lending capacity. We believe that further asset sales, either in cement or stakes in the projects, would be the more likely options to address funding of the refinery.<\/span><\/i>\u201d<\/span><\/p>\n Fitch also noted that Dangote Industries suffers from weak corporate governance, adding that it\u2019s a risk for Dangote, who already has a lot of power over operations, to remain the largest shareholder and CEO of the project.<\/span><\/p>\n In the report, Fitch said, \u201c<\/span>DIL has a complex group structure with a large amount of related-party transactions, with a negative effect on operational and financial transparency. We also view the dominance of Aliko Dangote, as CEO and the main shareholder, in operations as an additional risk.<\/span><\/i>\u201d<\/span><\/p>\n Fitch concluded its report by saying that the refinery project is expected to sustain strong margins and yield solid cash generation, adding diversification to DIL’s profile and allowing rapid deleveraging.<\/span><\/p>\n \u201c<\/span>Once operational, we expect this project to contribute around USD1 billion to EBITDA annually when ramped up from 2024,<\/span><\/i>\u201d it added.<\/span><\/p>\n CERTAINLY, Good journalism costs a lot of money. Without doubt, only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government. We are ready to hold every corrupt government accountable to the citizens.<\/b> To continually enjoy free access to the best investigative journalism in Nigeria, we are requesting of you to consider making a modest support to this noble endeavor.\u201d<\/b><\/p>\n By contributing to NAIJA STANDARD NEWSPAPER, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all without fear or favor.<\/b><\/p>\n Your donation is voluntary \u2014 please decide how much and how often you want to give. For offline donation, email: letters@nigeriastandardnewspaper.com or call +2348037128048 (Nigeria) or +16825834890 (United States of America)<\/b><\/p>\n [pff-paystack id=<\/b><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Breaking NEWS: AFRICA\u2019S Richest Billionaire, ALIKO DANGOTE financially broke, seeking to borrow $1.1 billion (900 billion Naira) for Refinery Project–Fitch, world\u2019s biggest global rating agency \u2026 Already exhaust all cash in other projects, funds loaned Dangote Group of Companies not enough to finance Refinery Complex completion by 2023, can only raise fund through sale of […]<\/p>\n","protected":false},"author":2,"featured_media":8509,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110],"tags":[],"class_list":{"0":"post-8508","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/posts\/8508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/comments?post=8508"}],"version-history":[{"count":0,"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/posts\/8508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/media\/8509"}],"wp:attachment":[{"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/media?parent=8508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/categories?post=8508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nigeriastandardnewspaper.com\/a\/wp-json\/wp\/v2\/tags?post=8508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}