Recounting the financial challenges associated with developing the facility, which has become Dangote Cement’s flagship Nigerian plant, he said the company embarked on the project when Nigerian banks had a capital base of about N25bn.
He recalled that the initial investment was estimated at $180m, but the project eventually cost approximately $1bn following delays and additional expenditure arising from inadequate infrastructure.
Dangote explained that the company initially relied on government assurances that essential public utilities, including electricity and gas supply, would be available. Consequently, it did not make adequate provisions for independent power generation, gas pipelines and fuel infrastructure at the beginning of the project.
According to him, the infrastructure deficiencies created operational difficulties and significantly increased the project’s overall cost.
The industrialist said the company subsequently approached the International Finance Corporation (IFC) for additional financing.
He explained that while Dangote Industries initially proposed repaying the facility within three years, the IFC rejected the repayment schedule after reviewing the company’s financial projections.
Instead, the international development finance institution proposed a seven-year arrangement, including a two-year repayment moratorium and five years for repayment.
Despite the extended financing arrangement, Dangote said borrowing from local financial institutions remained particularly expensive, with interest rates reaching 40 per cent.
He said he eventually invited the bankers to dinner six months before the expiration of the 18-month financing arrangement and settled the outstanding obligations.
Dangote said: “On the 18th month, six months before the expiry, I invited the bankers to dinner, and at the end of the dinner, I gave everybody their cheque. I paid off.”
Obajana is the largest Dangote Cement manufacturing facility in Nigeria, with an installed production capacity of 16.25 million tonnes annually across five production lines.
Commissioned in 2007, the plant initially operated two production lines with a combined capacity of five million tonnes per annum.
Its capacity increased to 10.25 million tonnes annually in 2012 following the addition of a third production line. Two additional lines, each with a capacity of three million tonnes, were subsequently commissioned in late 2014 and 2020.
Refinery project faced international scepticism
Dangote also recounted the difficulties encountered in developing the Dangote Petroleum Refinery, saying several international engineering firms and industry stakeholders initially questioned whether the project could be successfully executed in Nigeria.
He said the company initially planned to construct a refinery with a capacity of 300,000 barrels per day but later expanded its target to 650,000 barrels per day despite concerns about the project’s scale and complexity.
According to him, some international engineering, procurement and construction (EPC) contractors declined to participate, citing the risks associated with doing business in Nigeria.
Faced with the challenge, Dangote said his company decided to undertake the EPC responsibilities itself.
He noted that the refinery had not only achieved its original 650,000-barrel-per-day design capacity but had also increased production capacity to 710,000 barrels per day.
“We’re able not only to deliver the 650,000, which they say will not be done. We now are at 710,000 barrels,” he said.
The billionaire businessman used the experiences of both industrial projects to encourage women in business to set ambitious goals, develop confidence in their abilities and remain committed to achieving their objectives.
He urged women entrepreneurs not to be discouraged by criticism or the scale of the challenges associated with large investments.
“Don’t let anybody tell you that you are not able to do it. You must think very, very big. You must be very ambitious. You must give yourself a target and believe that you can deliver that target,” he said.
Dangote further identified inadequate infrastructure as one of the major obstacles to business development in Nigeria, noting that companies were frequently compelled to invest their own resources in facilities that should ordinarily be provided through public infrastructure.
He said his businesses had sometimes taken responsibility for developing essential infrastructure to ensure uninterrupted operations.
He also encouraged entrepreneurs to develop resilience and maintain their determination despite difficulties, stressing that success in business often requires overcoming significant obstacles.
“There is nothing in life that is easy. So you must say that yes, it’s difficult for me, but I can surmount all these pressures,” he said.
Dangote also expressed optimism about the financial prospects of his petroleum refinery, saying it was expected to achieve the highest profitability on the African continent within 55 days. He described improving the facility’s profitability as the company’s immediate priority.
WIMBIZ celebrates 25 years of promoting women in business
Earlier, the Founding Chairperson and Trustee of WIMBIZ, Omobola Johnson, reflected on the organisation’s 25-year journey and its efforts to create a sustainable platform for women in business and management.
Johnson attributed the organisation’s longevity to its commitment to inclusion, mutual respect, collective leadership and effective succession planning.
She said WIMBIZ had consistently challenged the perception that women could not work together, pointing to its continued growth and institutional sustainability over the past 25 years.
“We countered the fallacy that women cannot work together. We have worked together for 25 years, and we have built an institution that has endured, stood the test of time,” she said.
Johnson added that the organisation’s founders had prioritised their shared vision over personal interests and ethnic differences, while promoting diversity, collaboration and a common purpose.
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