Why Nigerian govt should stop Crude-for-loan deals – Dangote

The President of Dangote Group, Aliko Dangote has urged the federal government to end all crude oil for loan deals.

Dangote disclosed on Wednesday at the ongoing Crude Oil Refinery-owners Association of Nigeria Summit in Lagos.

The Nigerian billionaire and Africa’s richest man, who was represented by the Executive Director of Dangote Group, Engr Mansur Ahmed said the country must refrain from mortgaging its future wealth through crude-for-loan deals.

“To ensure sufficient feedstock availability, we will need to stop mortgaging crude. It is unfortunate that while countries like Norway are putting oil proceeds into a future fund through their national wealth funds, in Africa, we are spending oil proceeds from the future today,” he stated.

In June 2024, African Export-Import Bank, Afreximbank disbursed a total of $3,175 billion to the Nigerian government, of a $3.3 billion crude-for-loan syndicated facility through the Nigerian National Petroleum Company Limited.

Earlier, Dangote told the Nigerian government to remove fuel subsidy totally.