The loan was taken in May 2008 to finance its cement expansion project with a target to crash the price of the commodity from about N1, 800 ($10) to N1, 000 ($7) early 2011.

At completion of the phase two of the project, the cement project based in Obajana, Kogi state, Nigeria, stands to be the largest cement plant in sub-Saharan Africa. The company also plans to start another project in Ogun state, Nigeria and Senegal on Africa’s west coast. The loan was originally scheduled to be fully paid within seven years.

Chief Executive Officer of the group, Aliko Dangote speaking at the repayment ceremony, said the company decided to consolidate its cement assets and ensure the company is debt free. “The group which is among the leading business groups in Nigeria is embarking on cement assets, as a result of this, we have decided to repay the $1.27 billion loan finally which we took in May 2009 from the consortium of banks.”

When completed, the project would bring total production output of Dangote cement in the Nigerian market to 20 million metric tones per annum before March 2011. Dangote added that “by that time output from Zambia, Senegal and Ghana would be 4.5 million metric tones per annum making the group’s African market output 24.5 million metric tones per annum and the company the second largest cement manufacturer in Africa and among top 12 in the world”.

Dangote group has so far invested over $3.5 billion in its cement expansion projects across Africa and that was the reason for sourcing $1.27 billion from Nigeria banks and the balance sourced internally. The CEO however pledged that “it is quite obvious that we are determined to succeed as our commitment is clear. We have decided to put our money where our mouth is, with the aim of making Nigeria’s economic development a reality”.

The Forbes listed Nigerian billionaire is also bidding to buy controlling shares of Chevron Nigeria Oil producing.