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Dangote’s Billion-Dollar Nightmare: Nigeria’s Richest Man on the Brink of Default Amid Naira Meltdown

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1 year ago

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REVEALED: Vessels linked to Dangote’s brother to deliver imported fuel from Malta amid billionaire’s row with NNPC

Dangote’s Billion-Dollar Nightmare: Nigeria’s Richest Man on the Brink of Default Amid Naira Meltdown

 

According to a report, Nigeria’s business titan and Africa’s wealthiest individual, Aliko Dangote, is allegedly confronting a billion-dollar nightmare as he stands perilously close to defaulting on his staggering debts amidst a tumultuous Naira meltdown.

 

 

With an overdue biannual payment of $384 million, accumulating over six months until June 30, 2023, Dangote’s financial empire hangs in the balance, raising fears of a cataclysmic default.

 

 

Compounding Dangote’s woes is the freefall of the Nigerian Naira’s exchange rate, plunging to 770 Naira/1 USD under the newly implemented FX regime.

 

 

This has transformed the half-year loan repayment, amounting to nearly 295 billion Naira at the prevailing market rates, into an insurmountable mountain.

 

Despite seeking leniency through appeals to the Central Bank of Nigeria (CBN) for special rates, Dangote has been met with indifference and directed to navigate the open market in line with the new FX policy.

The dire situation is further aggravated by the ongoing incarceration of the CBN governor by the Department of State Services (DSS) due to a clandestine $1 billion loan from the Afrexim Bank.

 

Panic has begun to grip Nigerian banks as Dangote’s imminent default looms large. The gravity of the circumstances is compounded by the hasty commissioning of the incomplete Dangote Refinery in May 2023.

While Dangote’s company has claimed that the refinery would be fully operational by July, industry experts and the Nigerian National Petroleum Corporation (NNPC) have yet to substantiate these assertions.

Nevertheless, the NNPC granted the refinery a substantial crude oil allocation of 300,000 barrels per day, based on their 2021 cash plus crude investment agreement.

Concerns deepen as it remains uncertain whether the Dangote Refinery has truly commenced receiving crude oil since its purported initiation in June.

The predicament has placed the NNPC in a difficult position, with the possibility of 30% of Nigeria’s modest one million barrels per day crude oil production being channeled into a non-operational refinery.

Doubts regarding the status of the refinery were amplified by a recent leaked viral video, posted by refinery construction workers, revealing that the facility is far from completion.

At the helm of the nation’s leadership, President Bola Tinubu confronts the task of determining the fate of this precarious arrangement.

As tension escalates and uncertainty proliferates, the world watches with rapt attention as Dangote’s colossal financial empire teeters on the precipice, poised to reshape Nigeria’s economic landscape in the process.

@okay.ng

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

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18 hours ago

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December 21, 2024

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Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

 

 

…As Dangote Refinery partners MRS to sell PMS at N935 per litre nationwide at its retail outlets

 

 

Sahara Weekly Unveils That The Foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

 

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

 

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

 

 

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

 

 

In his statement, he called on other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”

 

 

According to him, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.

 

 

Recall that in September, the Federal Executive Council (FEC) under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

 

 

Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.

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Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

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1 day ago

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December 21, 2024

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Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

NNPC Debunks Shutdown Rumors, Confirms Port Harcourt Refinery Fully Operational

 

The Nigerian National Petroleum Company Limited (NNPC Ltd) has dismissed reports circulating in certain media outlets claiming that the Old Port Harcourt Refinery, which was re-streamed two months ago, has been shut down.

In a statement released by Olufemi O. Soneye, the Chief Corporate Communications Officer of NNPC Ltd, the company clarified that the refinery is fully operational. The statement noted that the facility’s operational status was recently verified by former Group Managing Directors of NNPC during a site inspection.

“Preparation for the day’s loading operation is currently ongoing,” the statement confirmed, emphasizing that allegations of the refinery’s shutdown are baseless and intended to create panic or artificial scarcity in the fuel market.

NNPC Ltd urged members of the public to disregard such misleading reports, labeling them as the work of those seeking to exploit Nigerians.

The Old Port Harcourt Refinery has been in operation since its re-streaming, and the company remains committed to ensuring stability in the supply of petroleum products across the country.

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Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

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2 days ago

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December 20, 2024

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Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

In a show of solidarity, the Committee of Banks in Nigeria has extended a helping hand to victims of the September 2024 floods in Jigawa State. On Thursday, a high-profile delegation led by Dr. Oliver Alawuba, Chairman of the Committee and Group Managing Director/Chief Executive Officer of United Bank for Africa Plc (UBA), visited Dutse, the state capital, to present relief materials to the state government.
The donated items, worth several million Naira, included essential food supplies such as rice and cooking oil, along with mattresses and beverages. Dr. Alawuba highlighted that the gesture aimed to alleviate the hardship faced by flood victims and support critical institutions, especially public hospitals, in their efforts to assist those affected.
“We stand in solidarity with the people and government of Jigawa State during this difficult time. This donation is our way of expressing empathy and supporting those who have lost loved ones, properties, and livelihoods,” Dr. Alawuba stated.
The delegation included notable banking leaders such as Mr. Roosevelt Ogbonna of Access Bank Plc, Dame (Dr.) Adaora Umeoji of Zenith Bank Plc, and Dr. (Mrs.) Nneka Onyeali-Ikpe of Fidelity Bank Plc, among others. Their collective presence underscored the banking sector’s commitment to corporate social responsibility and national development.
Governor Malam Umar A. Namadi expressed profound gratitude for the donation, describing the visit as a rare and commendable act of compassion. He assured the delegation that the relief materials would be judiciously distributed to the intended beneficiaries, emphasizing the importance of partnerships in rebuilding lives and communities.
The Committee of Banks also reiterated their commitment to supporting Nigerians during emergencies, drawing attention to previous interventions, including relief efforts during the 2011 and 2013 floods, the COVID-19 pandemic, and security initiatives like the Lagos State Security Trust Fund.
This humanitarian gesture reflects the collective resolve of Nigeria’s financial institutions to foster social and economic growth, making a meaningful impact in times of need.
Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

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