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Dangote Refinery Will Save Nigeria Over $10bn ― Finance Minister

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Zainab Ahmed

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed expressed the eagerness of President Muhammadu Buhari administration for the Dangote Refinery to commence operation, says it will not only save the country over $10 billion spend on crude importation but also create jobs.

Speaking while been conducted round the ongoing Dangote Petroleum Refinery, Petrochemical complex, fertilizer plant and Subsea gas pipeline projects, Zainab said that the government will continue to provide enabling environment to grow local business and attract investors.

“We are very confident that once Dangote refinery commences operation it will save us over $10 billion Nigeria spent on importing crude oil and also help to build local capacity and create jobs. The money we save will help to strengthen our macroeconomy which will, in turn, encourage investors to come in.

The Minister who also inspect the ongoing Apapa-Oshodi-Ojota-Oworonshoki Expressway, however, assured Dangote group of the Federal government support in ensure the reality of the project,

“We are going to be providing some intervention in area of duty and some tax waver which is available to every organization in that sector and part of my visit is to see the benefit of incentive we have been providing.

On his part, President of Dangote Group, Aliko Dangote said that on completion of the refinery project next year, they intend to grow the company revenue from $4 billion to $30 billion while creating massive employment opportunity.

“By the time we finished this refinery and other projects, for us as a company we are going to record a major change, we are looking at moving from $4 billion revenue to $30 billion revenue. That will strengthen us to invest more money in our domestic economy.

“We don’t want Nigeria to be an import base economy but rather export base economy. We have tried that in cement and it has really work in the sense that we are looking at exporting almost $400million to $500 million worth of cement in the next one to two years.

Aliko explained that due to inability of local construction companies to handle some of the aspects of the ongoing project, they were left with no other option than to procure some of the equipment, “we have to buy some of the equipment we use for construction as they were not readily available within the country. After this refinery project, with the kind of modern and sophisticated equipment at our disposal we may move into the construction industry.

Speaking on the capacity of the refinery, Aliko said that it will be the single largest train petroleum refinery in the world with 650,000 barrels per day with 838 KTPA polypropylene plant, “largest sub-sea pipeline infrastructure in any country in the world with 1,1pp km to handle 3 billion SCF of gas per day.

“Our refinery can meet 100 per cent of the Nigerian requirement of all liquid products such as gasoline, diesel, kerosene and aviation jet. It will also have a surplus of each of these products for export.

He disclosed that after completion of all the projects it will have capacity to generate over 280, 000 direct and indirect jobs.

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1 Comment

1 Comment

  1. Kelvin Agbogidi

    December 16, 2019 at 6:19 am

    That will be great

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Naira Crashes, Now Exchanging At N412 For A Dollar

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The Nigerian Naira plunged further in value on Monday March 30, as it exchanged at N412 for a dollar following a temporary suspension of sale of forex to the Bureau De Change operators in the country by the Central Bank of Nigeria.

Recall that the apex bank had pegged the exchange rate of the Naira at N380 to the dollar, a move it insisted was not a devaluation of the Nigerian currency.

The CBN however granted the Association of Bureaux De Change Operators of Nigeria its request of going on holiday due to challenges in the local and global economies over the coronavirus pandemic.

While the Naira has crashed in its value due to the low price of crude oil in the international market in recent times, BDC operators have disclosed that there has been a drastic decline in demand for forex due to the impact of coronavirus on the economy. The financial market stakeholders also disclosed that businesses are down and many people are not travelling.

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Naira Crashes In Value, Dollar Sells For N420

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On Thursday, the naira exchanged between N405 and N420 to a dollar in the Bureau De Change segment of the market, Punch reports

The President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said the crude oil price which fell drastically in the international market to as low as $35 per barrel, raised speculations among the BDC operators and Nigerians in general.

He said this caused speculations in the market which were not necessary.

Gwadabe said, “With the fall in oil crude oil prices on Monday, we witnessed a lot of foreign investors portfolio dropping their assets, most especially to convert to cash.

“The movement was as a result of recklessness on the side of the operators, when they want to speculate, but there is no reason for such because the Central Bank of Nigeria had continued to maintain support for liquidity to the BDC sub-sector.”

While noting that the dollar sold for as high as N400, he said sanity was gradually returning to the sector as it sold for N375 by the close of the day.

According to him, the CBN had maintained stability at N360 in more than three years.

He said in its meeting with the CBN on Thursday, the regulator warned the BDCs against contraventions.

The ABCON president disclosed that the CBN wanted to revoke the licences of some BDCs for various infractions but fined over 100 BDCs over N5m for various offences.

Another BDC operator who spoke with our correspondent said, “When we woke up on Monday, the exchange was still about N360, but all of a sudden, because of the fall in crude oil price, people were panicky.

“Today, we still sold for up to N420 but the price was fluctuating.”

The CBN also expressed its displeasure on the issue in a statement, saying the speculative activities of unscrupulous players in the foreign exchange market was borne out of the impression that the CBN was on the verge of devaluing the Naira, and triggering panic in the FX Market.

“These rumours are false, unwarranted and calculated to serve their dubious and selfish ends,” it stated.

It added, “We have begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit and related agencies to uncover the unscrupulous persons and FX dealers who are creating this panic, and the full weight of our rules and regulations will be meted out to them, including, but not limited to, being charged for economic sabotage.”

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N2.5trn Financing For One million Farmers On The Way

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Commodities Exchange Limited has initiated moves to raise N2.5 trillion for 1 million farmers in the next five years.

Addressing journalists at the Memorandum of Understanding (MoU) signing ceremony in Abuja on Wednesday, Chief Executive Officer of AFEX, Ayodeji Balogun said “AFEX is on a path to building Africa’s second commodities derivative market,

The MoU was signed between AFEX, FMDQ and Dubai Gold and Commodity Exchange (DGCX).

Ayodeji Balogun noted that this partnership sets the tone for that journey.

He noted that AFEX develop product innovations that will unlock a wider range of products that are able to be traded within Nigeria’s capital markets to promote broad-based wealth creation that’s accessible to every Nigerian.

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