A Boost For Nigeria: $20 Billion Dangote Refinery Project and Its Potential Advantages

A Lagos-based energy expert, Yomi Sola Falana, said: “The expected exportation of the refined petroleum products by the Dangote Refinery will enhance the country’s foreign currency earnings and thus result in boosting Nigeria’s foreign reserves.”

Foreign exchange

Also, some industry sources disclosed that Nigeria would be saving $26 billion annually from petrochemical plants and fertiliser importation.

“Nigeria will stop importing diesel, petroleum products, fertiliser and petrochemicals. That is saving over $26 billion in foreign exchange,” sources said.

Jobs and taxes

In a disclosure by a former president of the Nigeria Society of Petroleum Engineers, Joe Nwakwue, Nigeria would reap huge benefits from the Dangote refinery with direct jobs and taxes being paid to both the federal and sub-national governments.

“When we export crude to Europe and import fuel, we export jobs and put pressure on our scarce foreign exchange. The refinery will save us from that and create thousands of direct and indirect jobs,” Nwakwue said.

Value of Naira

The value of the Naira which has fallen in recent months can bounce back with the commencement of Dangote refinery that will export petroleum products and other items.

In his analysis, Falana said, “Furthermore, the payment for the petroleum refined products in Nigerian Naira, will reduce the pressure on the demand for US Dollars or Euros and thus, resulting in improving the Nigerian Naira exchange rate to the foreign rate to the foreign currencies.”