Expectations are high as the $20 billion Dangote Refinery commenced operations after President Bola Tinubu removed fuel subsidy in May.
As Nigeria battles economic hardship resulting from the removal of fuel subsidy, experts revealed some benefits expected from the refinery.
Foreign reserves
The operations of Dangote refinery will produce 650,000 barrels per day and since it can be exported, it will boost Nigeria’s foreign reserves.
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.”
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