Naijacelebritynews.blogspot.com gathered that Aliko Dangote, the richest man in Africa, plans to locate the refinery he is set to build, which he believes will double Nigeria’s capacity, in Olokola Free Trade Zone OFTZ in Ondo State. A senior official of the company, who asked not to be named, said that one of the factors considered for the location of the refinery is that it is the biggest deep seaport in the country and other big industries are located there. Besides, Ondo State is one of the oil producing states in the country. SEE MORE AFTER CUT>>>>
The source added that stable crude oil supply was also a vital element in the choice of the location for the refinery because Chevron and a number of other oil producers have oil fields in the oil-rich region of the state.
The source explained that necessary approvals had been secured for the refinery, adding that the Dangote Group was just waiting for the equipment to begin to arrive.
Another source said that Dangote, who was listed on Monday as the first African entrepreneur to lay claim to a $20 billion fortune and one of the 25 richest men in the world, intends to put down $4 billion of his personal fortune to build the refinery, while international financial institutions were to raise the balance. He has since confirmed that he has secured $4.25 billion loans from two offshore banks and some Nigerian banks to build his $8 billion refinery.
Dangote had, on his 52nd birthday in April announced plans to invest up to $8b billion in building an oil refinery with capacity for around 400,000 barrels a day by late 2016.
On why Lagos was not chosen, industry analysts said that athough the state was a coastal state, Dangote would have had to build extensive pipelines to transfer crude from the oil fields to the refinery, thereby making it uneconomical