Unveiling Nigeria's Energy Powerhouse: Dangote Refinery Debut with Presidential Presence and Otedola's Endorsement
- Posted on May 23, 2023
- By STEPHEN ADEBAYO
At the ceremony commemorating the inauguration of the Dangote refinery in Lagos, Godwin Emefiele, the President of the Central Bank of Nigeria, revealed that the refinery's operations would exert a substantial influence on Nigeria's foreign exchange (FX) reserves. Emefiele emphasized that once the refinery commenced its operations, it would lead to savings of $25 billion in Nigeria's FX requirements by eliminating the need for energy imports, while also facilitating $10 billion in exports. Emefiele underscored the significance of these savings and cautioned that if Nigeria failed to explore alternatives for energy imports, the country's import expenditures would have surged to $30 billion.
Economic Advantages and Job Creation
Emphasizing the economic advantages, Emefiele highlighted that the commencement of operations at the refinery would yield substantial gains in foreign exchange (FX). The project would not only create more than 135,000 permanent jobs but also generate 12MW of electricity, contributing to significant savings and alleviating the fiscal burden.
He added: “30% of Nigeria’s FX requirements went to fuel imports, it is instructive to note, that according to balance of payments it doubled from 8.4$ billion in 2017 to $23.3 billion at end of 2022,”
“Average annual costs of petroleum imports could breached $30 billion by 2027, if we continue to rely on imports”
“The refinery will serve over $25 billion in foreign exchange savings, and benefit an extra $10 billion through exports of refined products”
Addressing the Escalating Costs and Financing
Additionally, he pointed out that the refinery's costs had risen from $9 billion in 2017 to $18.5 billion, with Dangote's 50% equity investment playing a crucial role. He expressed delight in announcing that the commercial loan was financed by domestic banks. Furthermore, he highlighted the collaborative efforts of the Central Bank of Nigeria (CBN), which provided over N125 billion to fulfill domestic currency requirements and ensure access to foreign exchange (FX) for necessary imports.
He also mentioned that the Dangote Group had made partial repayments of the commercial loans before the commissioning, resulting in a reduction of the outstanding loans from over $4 billion to $2.7 billion as of today.
SOCIAL MEDIA OPTICS
~Billionaire Femi Otedola has also taken to twitter to share his excitement and anticipation on Dangote's new refinery. Check out his tweet below
Milestone for Nigeria and Africa's Prosperity
He further stated that the achievement of the refinery's development signifies a significant milestone not only for Nigeria's industrialist and the Dangote Group but also for Nigeria itself and the entire African continent.
“ today history is being rewritten for Nigeria trajectory for greater growth and prosperity, alongside the petrochemical plant.”
“The unwavering commitment in completing the project, notwithstanding various challenges exemplifies efforts to build a more productive economy.”
“This complex comprises a refinery, apetro chemical plant, and a urea fertiliser project, capacity to produce 3 million MT of urea annually, its flagship project, the refinery to produce 650 thousand 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.”
The inauguration ceremony of the Dangote refinery in Lagos marked a momentous occasion with significant implications for Nigeria's economic landscape. Godwin Emefiele, the President of the Central Bank of Nigeria, highlighted the substantial impact the refinery's operations would have on the country's foreign exchange (FX) reserves. By eliminating the need for energy imports, the refinery is projected to save $25 billion in Nigeria's FX requirements while generating $10 billion in exports, bolstering the nation's economy.
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