Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has narrated how the apex Bank partnered with the Dangote Group to ensure the successful completion of the gigantic refinery, which president Muhammadu Buhari declared open today, May 22 in Lagos.
In a goodwill message at the opening of the 650,000 barrels-per-day (BPD) Dangote Petroleum Refinery and Petrochemical complex in Ibeju-Lekki, Lagos, Emefiele said that CBN provided about N125 billion to cover domestic currency requirements for the venture.
According to him, the Dangote Group had started repaying some of the commercial loans before the inauguration of the facility, adding that the outstanding debt of Dangote Group, following extensive repayments, had dropped from over US$9 billion to US$2.7 billion.
Emefiele recalled that the project, at conception, was estimated to cost about US$9 billion, of which US$3 billion was projected as an equity investment by the Dangote Group and the balance financed through commercial loans, even as he praised the role of Nigerian commercial banks for providing loans to the Dangote Group to finance the project.
He expressed appreciation to all the participating local Nigerian banks, which provided immense support and exceptional understanding, even when interest payments and principal repayment had fallen due.
“I am proud to state that the commercial loan component of the project was financed majorly by our domestic banks, with the balance sourced from foreign banks.”
The CBN boss said that given the processing capacity of 650,000 barrels-per-day (BPD), the Dangote refinery is more than able to meet all of Nigeria’s domestic fuel consumption.
He put the domestic consumption at about 450,000 barrels per day, while the excess production is available for export.
Emefiele said that the refinery is designed to process not only the Bonny Light grade of crude oil, but also process a wide variety of other crude streams, including many from Africa, some Middle Eastern streams, and the US Light Tight oil.
He said that the Dangote refinery is capable of delivering all types of liquid products, including gasoline, diesel, kerosene, and aviation jet fuel.
Emefiele projected that the Dangote refinery could earn Nigeria foreign exchange savings, of between US$25 billion and US$30 billion annually, stressing that the impact of the savings would be directly reflected in Nigeria’s foreign exchange reserves by reducing the pressure on the country’s balance of payments.
He described the Dangote Refinery and Petrochemical Factory as a blessing to Nigeria and Africa, with favourable spillovers expected to spread from Nigeria to other West African countries and eventually to all countries of the African continent.
He said that the recent endeavours of Alhaji Aliko Dangote confirmed that Africans have the capacity to drive the continent’s economic integration, growth, and development, rather than depend almost entirely on foreign investors.
Emefiele said d that the Central Bank of Nigeria, through its various development finance interventions, would continue to support critical sectors of the Nigerian economy to promote a homegrown rebalancing of the Nigerian economy and fostering self-sufficiency.
In his remarks, the Chairman, Dangote Group, Alhaji Aliko Dangote said that the first product from the refinery will be available by August 2023.
He thanked President Muhammadu Buhari and successive Governors of Lagos State for supporting the project to come into existence. Alhaji Dangote specially commended Emefiele, whom he said: “moved mountains” to ensure the success of the project.
Also speaking, the Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kolo Kyari, said that the inauguration of the plant provided the potential for domestic security in the country.
In their various goodwill remarks, the President of the Republic of Ghana, Nana Akufo-Adoo, the President of Niger Republic, Mohammed Bazoum; and the President of Senegal, Macky Sall; the Vice President-elect, Kashim Shettima; and the Lagos State Governor, Babajide Sanwo-Olu, all commended the project in superlative terms
The CBN Governor lauded President Muhammadu Buhari for what he described as his unrivalled leadership, vision, and support in ensuring that the refinery project, which exemplifies his effort towards building a more productive economy, was completed during his tenure as President. He also commended Alhaji Aliko Dangote and the Dangote Group for their tenacity and unwavering commitment to completing the mega project, notwithstanding various challenges and constraints that they encountered along the way.
