We Paid 40% Interest on Obajana Loans — Dangote

President of Dangote Industries Limited, Aliko Dangote, has disclosed that his company paid interest rates of up to 40 per cent on loans obtained from Nigerian banks to finance the construction of its Obajana Cement plant in Kogi State.

Dangote made the revelation on Thursday, November 5, 2026, during the 25th annual conference of Women in Management, Business and Public Service (WIMBIZ) in Lagos, where he spoke about the challenges of building large-scale businesses in Nigeria.

Recounting the financial difficulties associated with the project, the billionaire businessman said the company embarked on the investment when Nigerian banks had a capital base of about ₦25 billion.

He explained that the project, initially estimated at approximately $180 million, eventually cost about $1 billion due to infrastructure deficiencies and other operational challenges.

According to him, Dangote Industries initially failed to provide critical facilities, including gas pipelines, fuel infrastructure and power plants, because it expected the government to ensure adequate electricity and other essential utilities.

However, the absence of reliable infrastructure forced the company to make additional investments, significantly increasing the project’s cost.

Dangote said the company subsequently approached the International Finance Corporation (IFC) for additional financing after encountering difficulties with the project’s funding requirements.

He explained that the company initially proposed repaying the IFC loan within three years, but the institution’s financial assessment resulted in a seven-year repayment arrangement, with no payments required during the first two years.

Despite the extended financing arrangement, borrowing from local banks remained expensive, with interest rates reaching 40 per cent.

Dangote said he eventually settled the outstanding obligations ahead of the agreed deadline, explaining that he invited the bankers to dinner six months before the 18-month financing arrangement expired and presented each of them with a cheque.

The industrialist used the experience to highlight the difficulties Nigerian businesses face in accessing affordable long-term financing, particularly when undertaking capital-intensive industrial projects.

He also encouraged women entrepreneurs to pursue ambitious business ventures, set clear targets and remain resilient despite challenges.

Dangote further identified inadequate infrastructure as a major obstacle to industrial development, noting that businesses are often compelled to provide essential facilities that should ordinarily be available through public investment.