Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,935,566 members, 7,102,742 topics. Date: Tuesday, 04 October 2022 at 11:45 PM

Dangote Refinery Will Save Nigeria Up To 30% FX - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Dangote Refinery Will Save Nigeria Up To 30% FX (116 Views)

Dangote Refinery Will Boost Growth Of Downstream Sector In 2022 - CPPE, Others / Dangote: My Refinery Will Be Completed By The End Of 2021 / Dangote Refinery Will Transform Nigeria’s Economy (2) (3) (4)

(1) (Reply)

Dangote Refinery Will Save Nigeria Up To 30% FX by BreakingNews21: 9:28am On Oct 16, 2021
Source: Nairametrics

Dangote refinery will save Nigeria up to 30% of FX spent on imports – Emefiele

Ubah Jeremiah Ifeanyi Ubah Jeremiah Ifeanyi

The Central Bank Governor, Godwin Emefiele has stated that Nigeria’s import of petroleum products using 30% of its forex can be reversed by the successful commencement of operations at the Dangote Refinery.

Emefiele disclosed this during a foreign investors’ meeting held in New York while answering a number of questions raised by foreign investors.

The questions bordered around Nigeria’s foreign exchange reserves, exchange rate, balance of payments and the country’s increasing foreign debts.

What the CBN Governor said
Speaking on Nigeria’s foreign debt, Emefiele said “We have ensured that any of our debts due is given utmost priority, particularly foreign debts. It’s like first line charge.

“The minister talks to me about it and we will ensure that wherever we find the dollar we pay most of our debt before we service any obligation. That is a rule if it is Nigeria automatic sovereign debt.

“But when you talk about Azura. Azura is not, in our view, an authentic sovereign FX debt.“

The CBN Governor stated that the commencement of the Dangote refinery will be a major saver of foreign exchange for Nigeria, while also insisting that Nigerians will benefit greatly from the project.

He said, “The Dangote refinery once it begins production would be a major FX saving source for Nigeria.

“In Nigeria, from the FX we spend on imported items, importation of petroleum products consumes close to about 30%. Dangote refinery has the capacity to produce 650,000 barrels per day of refined crude oil. If the 650,000 is sold in Naira it would be a major FX saver for Nigeria.“

Emefiele said that the project costs about $17.5 billion and Dangote’s equity is about $9 billion. He added that $9 billion has been contributed by a combination of foreign banks, local banks and the CBN.

“That project is one of Nigeria’s backward integration programmes and we are very proud it is coming to light and indeed we know that refineries abroad are already scared because they know the market they will lose because Nigerians will prefer to patronise that than foreign imported refined products where we will save [on] transportation and logistics,” he said.

The central bank governor said that Nigeria could save close to 40% of foreign exchange imports through a combination of the Dangote refinery and a petrochemical plant that will be launched in June-July 2022. He added that when the project commences full operations, the currency would be floated and it would cease depreciation.

Related
CBN includes sugar, wheat on FX restriction list
April 16, 2021
In "Business"
Dangote Refinery will save forex, stabilize the naira – Dangote, Emefiele 
September 1, 2021
In "Energy"
CBN says no more dollar sales to people who buy weapons
September 18, 2021
In "Business"
Categories: Business, Currencies, Spotlight
Tags: CBN, Dangote Refinery, Foreign Exchange, forex
Leave a Comment
Nairametrics
https://nairametrics.com/2021/10/16/dangote-refinery-will-save-nigeria-up-to-30-of-fx-spent-on-imports-emefiele/

Re: Dangote Refinery Will Save Nigeria Up To 30% FX by smat101(m): 9:31am On Oct 16, 2021
D
Re: Dangote Refinery Will Save Nigeria Up To 30% FX by thesicilian: 9:35am On Oct 16, 2021
The Eutopia that may never be

(1) (Reply)

Mini And Potable Shawarma Grill/burner For Sale 20k. / Choose Professionals Offering Warehouseshelvingoptionstoimprovestorageefficiency / Arbitrage In Nigeria

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2022 Oluwaseun Osewa. All rights reserved. See How To Advertise. 49
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.