Dangote expects refinery project to boost Nigeria’s export earnings, foreign reserves

Aliko Dangote, the founder of Dangote Cement, said his crude oil refinery plant would help Nigeria solve its foreign currency scarcity and increase the country’s international reserves.

Ikeanumba Africa had previously reported that Nigeria’s forex scarcity has lingered with foreign reserves growing slowly from $38.48 billion at the start of June to $39.1 billion at the end of the month.

The businessman said his $2 billion Petrochemical refinery would export over 8 million tons of petroleum products annually, without affecting its domestic supply.

Dangote, according to a statement seen by Ikeanumba Africa on Tuesday, stated this during the 2022 Zenith Bank International Trade Seminar on Non-oil Export held recently in Lagos.

He stressed that the impact of the 650,000 barrels per day refinery would be felt soon, as it nears completion.

The African richest man declared that the petrochemical plant would also boost the nation’s non-oil export earnings, saying the plant was already earning revenue in foreign currency from fertilizer production.

The plant has started exporting fertilizer to India, North America and Latin America, with expectation that exportation will rise to two million tons per annum when operation becomes steady.

Aside the fertilizer, it will also produce polypropylene, allowing Dangote Group to profit from global demands of the growing plastic processing downstream industries.

Dangote advised the Nigerian government to focus on import and export opportunities, as less attention on the latter is affecting the country’s economy.

He said: “This exposes the economy to oil price and production risks. Export opportunities abound in Nigeria but there are two main routes import substitution and export-oriented industries. Import substitution is ideal for economies like Nigeria which has a large domestic market, and a huge import bill.

He urged the government to build on the country’s competitive advantage to develop industries that are primarily geared toward export.

“Nigeria LNG Limited (NLNG) in Bonny is a good example of an export-oriented investment (though it would be good to get a model where such revenues are sold in the I & E window,” the billionaire added.