Page 4 - AfrOil Week 43 2021

AfrOil COMMENTARY AfrOil

Delivery of reactor unit to Dangote refinery (Photo: Mammoet)

CBN reiterates importance

of Dangote oil refinery

The Central Bank of Nigeria has once again pinned its hopes on the Dangote refinery to ease
the country’s foreign exchange crisis, even though the plant has yet to process a single barrel

THE governor of the Central Bank of Nigeria Monetary Fund (IMF) and the World Bank,
(CBN) reiterated last week that the Dangote oil Emefiele said: “We have ensured that any of our
WHAT: refinery was likely to play an important role in debts due is given utmost priority, particularly
The Dangote Refinery addressing Abuja’s concerns about the depreci- foreign debts. It’s like [a] first-line charge.”
will become Africa’s ation of the national currency, the naira. The governor noted that he and Minister of
largest when it goes into Speaking during a meeting with foreign State for Petroleum Resources Timipre Sylva
operation next year. investors in New York, Godwin Emefiele said had discussed the issue, saying: “[We] will
that the 650,000 barrel per day (bpd) facility ensure that wherever we find the dollars, we
WHY: would save the country around 30% of its exist- [will] pay most of our debt before we service any
With an integrated petro- ing foreign exchange (forex) expenditure on obligation.”
chemicals facility located petroleum product imports. Additional savings Once the refinery comes into operation in
on site, Abuja anticipates of 10% are likely to follow, considering plans for early 2022, he said it will be “a major [foreign
a significant reduction
in its fuel and products the neighbouring petrochemical plant, which exchange] saving source for Nigeria.” He contin-
import bill. is expected to go into operation soon after the ued: “Right now, the overall forex we spend on
refinery. imported items, the importation of petroleum
WHAT NEXT: The governor made similar comments in products consumes close to 30%,” including
Given its anticipated im- March, noting at the time that the Dangote diesel, jet fuel, gasoline and other petroleum
portance to the Nigerian Group had provided assurances that its pur- products.
economy, the relation chase of Nigerian crude would not impact the Speaking of the Dangote plant’s 650,000 bpd
between the state and country’s 1.6mn bpd mandatory export volume capacity, he said: “There is a domestic com-
the private facility will allocated by OPEC. ponent that is about 455,000 bpd. Even if the
continue to be watched 455,000 bpd is what is sold to Dangote in naira
with great interest. Nairanomics alone, it is going to be major forex saving for
During a recent meeting with the International Nigeria.”

P4 www. NEWSBASE .com Week 43 27•October•2021