According to an American credit rating agency Fitch, Dangote is insolvent and lacks the $1.1 billion needed to finish his refinery.
According to Fitch Ratings, Aliko Dangote, Nigeria’s richest man, requires roughly $1.1 billion (N900 billion) to finish his refinery in Lagos.
The project, which was supposed to be completed in 2019 but was apparently delayed due to a shortage of funds and the negative impacts of the COVID-19 epidemic.
Dangote invested all of his money and borrowed more monies to finance the project, according to a corporate summary provided by Fitch Ratings in May.
Dangote Industries Limited was preparing to issue a local bond worth $750 million to partially fund the project, according to the credit rating agency.
According to the Fitch analysis, “funding for the completion of the refinery project is projected to be partly funded by proceeds of the new bond.”
The refinery’s existing creditors will be unable to provide the funds required to complete the project “if the transaction is not successful or should completion cost overruns or market conditions in the cement or urea deteriorate considerably,” according to the document.
The rating agency stated that Dangote Industries had poor corporate governance, and that having Mr Dangote as CEO and largest shareholder would put the company’s operations at danger.
The funny part is that, the Buhari administration is counting on the yet-to-be-finished refinery to turn the country’s economy around.
Last April, information minister Lai Mohammed touted the project as a game-changer in terms of preserving foreign cash by eliminating petroleum imports, creating jobs, and generating foreign exchange through completed product exports. Lol
The Richest Man In Africa Aliko Dangote Is Broke Now?
E shock me sha. Share your thoughts and views in the comment section below
