New Telegraph

CBN’s interventions in Dangote Refinery hit N100bn


The loan facility and funding intervention extended by the Central Bank of Nigeria (CBN) to Dangote refinery have hit N100 billion. A document of the apex bank sighted by New Telegraph at the wekekend showed that the interventions are likely to surge before the 2022 new completion date set for the project.


The N100 billion intervention was released to the Dangote Petroleum Refinery and Fertiliser Comapny in two tranches of 60 and 40 per cent respectively, the document showed.


The CBN Governor, Godwin Emefiele, also gave a hint about this funding during his last visit to the multi-billion dollar project’s site in Ibeju- Lekki area of Lagos.


He added during an inspection of Dangote Refinery, Petrochemicals Complex Fertiliser plant, and subsea gas pipeline project at Ibeju Lekki, Lagos, that the apex bank was ready to support Nigerian businesses set up to uplift the country economically.


The Federal Government, Emefiele continued, had concluded plans to sell crude oil to the 650,000 barrels per day Dangote refinery in naira. “This is part of measures adopted to strengthen the currency and by extension the nation’s 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,” he said.


This, he continued, “is expected to help Nigeria save about 41 per cent of its foreign exchange that is being expended on the importation of refined petroleum products.


He confirmed that the first shipment of Urea from Dangote Fertiliser Plant would begin in March 2021, 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 confidence that the refinery would be completed by the first quarter of 2022, Emefiele, said: “I am saying that by this time next year, our cost of import of petroleum products for petrochemicals or fertilizer will be able to save that which will save Nigeria’s reserve. It will help us so that we can begin to focus on more important items that we cannot produce in Nigeria today.’’


Also speaking, Alhaji Aliko Dangote said that the fertiliser and petrochemicals plants were capable of generating $2.5 billion annually while the refinery would serve Nigeria and other countries across the world.


Dangote, who expressed gratitude to President Muhammadu Buhari and the CBN governor for their support toward the completion of the projects, said they would create additional jobs for Nigerians.

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