The newly commissioned Dangote Petroleum Refinery & Petrochemicals is set to help Nigeria save $30 billion in refined petroleum products importation while boosting the foreign exchange inflow by $10 billion.
President Muhamadu Buhari said the plant would advance Nigeria’s drive towards self-sufficiency in food production, among other national objectives. The refinery, which has the capacity to process 650,000 barrels of crude oil per day, is the largest single-train refinery in the world and will enhance a surge in foreign exchange which will further strengthen official reserves and promote exchange rate stability.
In addition to the nearly US$30 billion foreign exchange savings from the reduction in petroleum imports, the economy is projected to benefit an extra US$10 billion of foreign exchange inflow annually through the export of refined petroleum products. This project will also provide support to the fiscal operations of the government as it could help ease budget constraints of funding the petroleum subsidy and engender fiscal savings.
The Dangote Refinery and Petrochemicals project in Nigeria is expected to save the federal government about N5 to N7 trillion annually in fiscal expenditure over the next five years. President Emefiele noted that the Dangote Group had started repaying some of the commercial loans even before the commissioning of the facility, which reflects the commercial capability of the Group and its Chairman.
The participating local Nigerian banks provided immense support and understanding, even when interest payments and principal repayment had fallen due. President Buhari said the plant would advance Nigeria’s drive towards self-sufficiency in food production and contribute to the stabilisation of the country’s oil sector.