Dangote Refinery seeks to divest 12.75% stake this year - Fitch
Fitch ratings recently downgraded Dangote Industries to B+ and further noted that the plans by the group to divest a 12.75 per cent stake in the Dangote Refinery this year will need to be timely to meet to meet the maturity of a significant syndicated loan maturing in August. Meanwhile, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun says the country currently spends 600 million dollars on fuel importation monthly. Temitope Kolade, Senior Manager, Oil, Gas and Power at Andersen Nigeria joins CNBC Africa for more.
Thu, 08 Aug 2024 12:03:24 GMT
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AI Generated Summary
- Fitch downgrades Dangote Industries to B+ and raises concerns about the divestment of a 12.75% stake in Dangote Refinery
- Nigeria's Minister of Finance highlights the country's significant spending on fuel importation, underlining the need for domestic refining capacity
- Expert analysis from Temitope Kolade on the implications for the oil and gas sector in Nigeria
Dangote Industries, a prominent conglomerate in Nigeria, has recently faced some setbacks as Fitch ratings downgraded its credit rating to B+. The group's plans to divest a 12.75% stake in the Dangote Refinery this year are crucial to meet the maturity of a significant syndicated loan that is due soon. This development has sparked concerns about the company's financial stability and ability to meet its financial obligations in a timely manner. In the midst of these challenges, Nigeria's Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the country's hefty monthly spending of 600 million dollars on fuel importation, shedding light on the urgent need for domestic refining capacity. Temitope Kolade, Senior Manager, Oil, Gas, and Power at Andersen Nigeria, provided valuable insights on the implications of these developments for the oil and gas sector in the region. The future of Dangote Industries and the energy landscape in Nigeria hang in the balance as stakeholders closely monitor the unfolding situation.
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