Dangote Refinery offers significant advantages beyond price reduction, by Abubakar M. Kareto
Nigeria’s current allocation of 30-40% of its FX to petrol imports exerts substantial pressure on the country’s FX reserves.
However, the refinery’s operations will revolutionise the FX market, enabling Nigeria to retain its valuable foreign currency.
The approved transaction of crude to local refineries in local currency will yield an annual savings of $7.32 billion.
The refinery will also stabilise petroleum product prices by conducting transactions in naira, shielding them from external influences like FX illiquidity.
READ ALSO: NNPC has not commenced lifting of petrol from our Refinery – Dangote
The elimination of the International Credit Letters will further streamline transactions, reducing expenses for both the refinery and FX market.
The Dangote investment is poised to generate $16 billion in foreign exchange and create 250,000 jobs, substantially enhancing the government’s tax base.
Proofreading by Gift Luckson, Editor at Neptune Prime.
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