Aliko Dangote, the founder and Chief Executive of Dangote Industries Limited, has revealed that his company incurred interest rates of up to 40 per cent on loans from local banks. The high-cost financing was utilized for the construction of the company’s cement plant in Obajana, Kogi State.
The disclosure highlights the significant financial burden associated with domestic borrowing for major industrial projects in Nigeria. Dangote’s comments underscore the challenges faced by large-scale manufacturers when accessing capital from the local banking sector.
By citing a figure as high as 40 per cent, the industrialist has drawn attention to the disparity in lending costs that can impact the overall profitability and expansion timelines of critical infrastructure and manufacturing facilities.
The Obajana Cement plant represents a key asset in Dangote Industries’ portfolio, serving the regional demand for construction materials. The revelation of such elevated interest rates may prompt further discussion regarding the structure of the Nigerian banking sector and its support for industrial growth.
<small>Source: Punch Nigeria — read the original story there.</small>