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Kenya's oil refinery to benefit from costly lessons Dangote learned in Nigeria
['Elijah Ntongai']
Tuko.co.ke
Aliko Dangote is the richest man in Africa.
He attributed the reduction to a shorter construction timeline, lower financing costs, and the institutional knowledge his company accumulated while building the Dangote Refinery in Lagos.
"We told you it was going to cost $17 billion, but it's going to cost less than that; we are looking at $15.5 and $16 billion," Dangote said.
Financing will follow a 30:70 equity-to-debt split, a structure notably different from the roughly 50:50 mix that eventually funded the Lagos refinery after costs escalated during construction.
Lenders will supply approximately KSh 1.45 trillion ($11.2 billion) while shareholders inject around KSh 621 billion ($4.8 billion).