Nigeria to earn $10b exports, save $25b through other economic benefits
By Jeph Ajobaju, Chief Copy Editor
Dangote Refinery that was commissioned in Lagos on Monday by President Muhammadu Buhari is poised to save $25 billion in foreign exchange (FX or forex) needs for energy imports and also earn $10 billion in refined oil exports.
The projection was made at the event by Central Bank of Nigeria (CBN) Godwin Emefiele, who noted fuel import bill would have shot up to $30 billion without the private refinery Aliko Dangote built at a cost of $18 billion.
Emefiele listed other economic benefits of the refinery to include over 135,000 permanent jobs and 12 mega watts (mw) of electricity.
“30 per cent of Nigeria’s FX requirements went to fuel imports, it is instructive to note that according to balance of payments it doubled from $8.4 billion in 2017 to $23.3 billion at end of 2022,” he disclosed.
“Average annual costs of petroleum imports could reached $30 billion by 2027, if we continue to rely on imports.
“The refinery will save over $25 billion in foreign exchange savings, and benefit an extra $10 billion through exports of refined products.
By 2017, Emefiele added, the cost of the refinery had escalated from $9 billion and with 50 per cent equity investment by Dangote, “I am delighted to announce, the commercial loan was financed by domestic banks.”
He said the CBN also partnered with the refinery to ensure successful completion with over N125 billion for domestic currency requirements, and availability to FX to pay for imports needed.
The Dangote Group paid down some portion of commercial loans before the commissioning and the total outstanding loan has dropped from more than $4 billion to $2.7 billion, Emefiele announced.
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Trajectory for greater growth
“Today, history is being rewritten for Nigeria’s trajectory for greater growth and prosperity, alongside the petrochemical plant,” Emefiele added, per Nairametrics.
“The unwavering commitment in completing the project, notwithstanding various challenges, exemplifies efforts to build a more productive economy.
“This complex comprises a refinery, a petro chemical plant, and a urea fertiliser project, capacity to produce 3 million MT of urea annually.
“Its flagship project, the refinery, to produce 650,000 barrels per day (bpd), is the largest single train in the run, including processing capacity, more than able to meet all of Nigeria’s domestic consumption and generate export revenue.”
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