The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has revealed that arrangement is being made to enable the Dangote Refinery to sell refined crude to Nigeria in naira when it commences production.
The take-off of the much anticipated $15 billion refinery is expected to help Nigeria save about 41% of its foreign exchange that is being expended on the importation of refined petroleum products.
According to a report by the News Agency of Nigeria (NAN), this disclosure was made by Emefiele during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline project at Ibeju Lekki, Lagos.
Emefiele also said that the first shipment of Urea from the Dangote Fertiliser Plant would begin in March to help boost agriculture in the country.
What the CBN Governor is saying
Emefiele said, ”Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira.
“That is the element where foreign exchange is saved for the country becomes very clear. We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with the freight will be totally eliminated.
“This will make the price of our petroleum products cheaper in naira. If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.
“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency.”
Emefiele was confident that the refinery would be completed by the first quarter of 2022, adding that this would put an end to the issue of petrol subsidy in the country.
He said, “I am saying that by this time next year, our cost of import of petroleum products for petrochemicals or fertiliser will be able to save that which will save Nigeria’s reserve. It will help us so that we can begin to focus on more important items that we cannot produce in Nigeria today.’’
While pointing out that the CBN had given an N100 billion intervention to the projects, Emefiele added that the apex bank was ready to support Nigerian businesses set up to uplift the country economically.
Speaking during the occasion, Alhaji Aliko Dangote said that the fertiliser and petrochemicals plants were capable of generating $2.5 billion annually while the refinery would serve Nigeria and other countries across the world.
While expressing his gratitude to President Muhammadu Buhari and the CBN Governor for their support towards the completion of the projects, Dangote said the projects would create jobs for Nigerians and build their capacity in critical areas of the oil and gas industry.
What you should know
- Dangote refinery is a 650,000 barrels per day (BPD) integrated refinery and petrochemical project under construction in the Lekki Free Zone near Lagos, Nigeria. It is owned by the Dangote Group and is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion.
- The integrated refinery and petrochemical project which will meet 100% of Nigeria’s refined petroleum product requirement and even have a surplus for export when completed is expected to be completed in 2021 after some delays and will generate 9,500 direct and 25,000 indirect jobs