The Central Bank Governor, Godwin Emefiele, has said that the commencement of operations at the Dangote Refinery in 2022 would make Naira appreciate and would reverse the 30 per cent foreign exchange spent on the importation of petroleum products into the country.
The governor explained that Nigeria could save close to 40 per cent of foreign exchange imports through a combination of the Dangote refinery and a petrochemical plant that would 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.
Emefiele stressed that the refinery had the capacity to produce 650,000 barrels per day of refined crude oil.
The governor noted that importation of petroleum products into the country consumes close to about 30 per cent foreign exchange.
According to him, the 650,000 barrels would be a major foreign exchange saver for Nigeria, if sold in Naira.
Emefiele stated this during a foreign investors’ meeting held in New York, while answering a number of questions raised by foreign investors.
On foreign debt, he 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.”
The governor said that the Dangote Refinery project costs about $17.5 billion, saying that Dangote’s equity was about $9 billion, while $9 billion was contributed by a combination of foreign banks, local banks and the CBN.
He added that the project was one of Nigeria’s backward integration programmes the government was very proud to see, noting that refineries abroad were already scared about the project.
