Categories
BLUE UPDATE

Federal Government of Nigeria To Sell Crude oil to the $15 billion Dangote Refinery in Naira.

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

This is said to be part of elite 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 the refinery on 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 Emefiele, the decision is expected to help Nigeria save about 41% of its foreign exchange that is being expended on the importation of refined petroleum products.

He 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.

“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency.”

Expressing also expressed confidence that the refinery would be completed by the first quarter of 2022,and the first shipment of Urea from the Dangote Fertiliser Plant would begin in March 2021.

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 – 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.

He expressed gratitude to President Muhammadu Buhari and the CBN Governor for their unflinching support toward the completion of the projects, said saying it would help create additional jobs for Nigerians.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.