Skip to main content

UPDATED: FG to sell oil in Naira to $15bn-Dangote Refinery


By Udeme Akpan

THE Federal Government has concluded plans to sell crude oil to the $15 billion Dangote Refinery in Naira.

This is part of measures adopted to strengthen the currency and by extension the nation’s economy.

The governor, Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, who visited, Saturday, to inspect the ongoing construction of the Dangote Refinery, Petrochemicals Complex Fertiliser Plant, and Subsea Gas Pipeline project at Ibeju Lekki, Lagos, said: “We have taken the decision to sell the crude to the Refinery in Naira because we want to impact the economy.

“We also hope that by the time the Refinery start to refine, and sell its petroleum products in Naira, the local currency will be stronger, and by extension the nation’s economy, which is still oil-driven.”

According to him, this is expected to help Nigeria save about 41% of its foreign exchange that is being expended on the importation of refined petroleum products.

Emefiele, who noted that the first shipment of Urea from the Dangote Fertiliser Plant would begin in March 2021, 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.”

Expressing confidence that the refinery would be completed by the first quarter of 2022, Emefiele, said: “I am saying that by this time next year, our cost of import of petroleum products for petrochemicals or fertilizer 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.’’

Emefiele said the CBN had given an N100 billion intervention to the projects, adding that the apex bank was ready to support Nigerian businesses set up to uplift the country economically.

Also speaking the Alhaji Aliko Dangote said that the fertilizer and petrochemicals plants were capable of generating $2.5 billion annually while the refinery would serve Nigeria and other countries across the world.

Dangote, who expressed gratitude to President Muhammadu Buhari and the CBN Governor for their support toward the completion of the projects, said they would create additional jobs for Nigerians.

Vanguard News Nigeria


Comments

Popular posts from this blog

16 killed on Abuja-Kaduna road: Ganduje rains curses, says killing devastating, frustrating

Ganduje …APC youth leader, district head, 2 others kidnapped in Niger State …Police arrest two suspected kidnappers of rescued US citizen By Bashir Bello There seems to be no end to the wave of insecurity sweeping across the country as no fewer than 16 indigenes of Dambatta Local Government Area of the Kano State were on Tuesday killed by gunmen along Abuja-Kaduna highway. This is even as a district head, youth leader of the All Progressives Congress, APC, and two others were yesterday kidnapped at Garin Gabbas in Rafi Local Government Area of Niger State, by bandits, as Governor Abdullahi Ganduje rained curses on the perpetrators. A source in Dambatta, who spoke on condition of anonymity, said the incident leading to the death of indigenes (all males) occurred last Tuesday when the gunmen shot at a tyre of the moving vehicle (Hummer Bus) conveying them from Abuja back to Kano. The source said the action of the gunmen resulted in a fatal accident which led to the death of the deceased....

This is time to act, Charly Boy writes Nigerian youths

Charly Boy By Benjamin Njoku Following the incessant killings of innocent Nigerians by the men of the now curtailed Special Anti-Robbery Squad of the Nigeria Police Force, SARS, maverick musician, Charly Boy, has urged the Nigerian youths to rise and fight against repressive administration. Charly Boy made the call on Monday via his Instagram page. The maverick musician wrote: “My Beloved Nigerian Youths, “Our elders say, when ant bite you for nyash, you go adjust your self. The truth be say, we have been silent through fear for far to long.” ALSO READ:  Wizkid blast Buhari, asks him to face his country and leave Trump alone “When will Enough be Enough? This is not the life any of you envisaged. You cannot continue in an environment that robs you of your destiny and kills your dream. Know your enemies, because it’s time to face them. “The time to start organising is now, the time to stop agonising now. The time to act is now. No one is too small to make a difference.” Charly Boy’s ...

Anambra lifts curfew, reopens schools

By Vincent Ujumadu Awka- ANAMBRA State government Tuesday announced the lifting of curfew imposed on the state by Governor Willie Obiano in the wake of #endSARS protests by youths across the state. Commissioner for Information and Public Enlightenment, Mr. C Don Adinuba said the lifting of the curfew followed a great improvement in the security situation in the state. Adinuba’s statement read: “Anambra State Governor, Chief Willie Obiano has decided to lift the curfew imposed in the state since last week. READ ALSO: I will sign executive order to recover looted property — Fintiri “Consequently, all educational institutions closed last week in the wake of the havoc visited on the state by gangs of arsonists and looters are hereby directed to resume normal activities. “In the same vein, all civil servants are directed to return to work immediately. “Governor Obiano thanks Anambra people for their great cooperation which enabled normalcy to return to our state within a short period. “The ...