The much touted construction of the Dangote Refinery is ongoing and the PR machine has been unleashed in the quest to create awareness for the project and to a larger extent, attract government incentives. It’s nothing new, if you follow Aliko Dangote very well. The Billionaire investor loves to ride on government incentives to push his business empire. After all, it’s a ‘win win’ situation or so he thinks.
His Chief Operating Officer Kunle Alake was recently quoted by several media outlets discussing the benefits of setting up the refinery. As usual and in typical PR style, he had a long list of what Nigeria stands to gain. We counted 12 of them.
- The refinery and fertiliser projects will create job opportunities for the communities and Nigerians when it becomes operational. It will create over 300,000 direct and indirect jobs by the first quarter of 2019
- The refinery will have a refining capacity of about 650,000 barrels of crude a day,’’
- It will force down the price of Premium Motor Spirit (petrol) in the country and save money spent on importation.
- He said that projects such as these would optimise government revenue and wean Nigeria from relying solely on oil.
- Once the gas pipeline is completed, it will be able to generate about 12,000mw which can be exported to other African countries.
- They will have the capacity to store four billion litres of products and load 2,680 trucks per day.
- The project will aid the country with about 7.5 billion dollars forex savings on importation.
- It will also generate five billion dollars forex earnings from savings and another 5.5 billion dollars export earnings
- There would be markets for the refined products
- The projects will help Nigeria to save five billion dollars on oil importation when it becomes operational in 2019.
- By the time the project is completed,there will be opportunity to take on agriculture and say bye to poverty because there will be jobs.
- It will help Nigeria with economic diversification.
And just as we expected he ended the PR/Pitch with what they actually need from the government.
- Forex from Government – This will probably be via direct sale of forex by the CBN to Dangote
- Funding for the projects – This will probably be via very cheap loans from the Bank of Industry, whom they have already received N50 billion from. Maybe Government will lend via the CBN.
- Tax incentives – Though they didn’t mention this but it will be foolhardy for you to bet against them getting a Pioneer certificate for this.