In Throwback Video, Emefiele Argues Nigeria Can Only Float Naira after Dangote Refinery Begins Production

•CORAN congratulates Aliko on commencement of PMS refining 

•NUPENG pledges support for new facility

Emmanuel Addeh and Onyebuchi Ezigbo in Abuja

An old video reiterating the comments of former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on the Dangote refinery and how it will only be appropriate to float the naira after it commenced production has surfaced online.

Emefiele was speaking during a foreign investors’ meeting held in New York, while answering questions raised by the businessmen who had an audience with him.

Emefiele maintained that it was only appropriate to float the naira when it stopped haemorrhaging against the dollar, apparently, through the import of petrol and several petrochemicals that depleted Nigeria’s foreign exchange (FX). For this reason and more, Emefiele stoutly resisted pressure to float the naira insisting then that the time was not right, and floating it would plunge the naira into chaos.

As a way of support, the ex-CBN Governor frequently visited the massive facility to encourage its completion.

The Bola Ahmed Tinubu administration floated the local currency last year, a development that severely depreciated the naira against other currencies.

Emefiele is seen saying in the video, “By that time (when Dangote commences petrol production), you will see what we will be doing in terms of when most people talk about allowing the market to float. We will float the market and then let’s see how this currency will depreciate.”

The Dangote refinery has now begun the production of petrol and other fuels, even though largely delayed.

The former CBN governor said Nigeria would save up to 40 per cent of its foreign exchange earnings when the Dangote Refinery and Petrochemical Plant was in full operation.

He stated that the commencement of the refinery will be a great saver of foreign exchange for Nigeria, highlighting that Nigerians will benefit greatly from the project.

At the time, he said the overall FX Nigeria spent on imported petroleum products, including diesel, aviation fuel, and others, was close to 30 per cent of the country’s earnings.

Emefiele said, “The Dangote refinery has the capacity to produce 650,000 barrels per day. There is a domestic component that is about 455,000 barrels. Even if the 455,000 is what is sold to Dangote in naira alone, it is going to be major forex saving for Nigeria.

“And If you look at the cost of freight alone, it is a major saving for Nigeria. That is because if we have to go to Europe or other parts of the world to bring in petroleum products, where Nigeria pays heavily in freight and in stocking those products in the high sea before we offload them, Nigerians would benefit a lot from the Dangote refinery.

“That project is one of Nigeria’s backward integration programmes and we are very proud it is coming to light and, indeed, we know that refineries abroad are already scared because they know the market they will lose because Nigerians will prefer to patronise the Dangote refinery than foreign imported refined products where we will save on transportation and logistics.”

Aside petrol, diesel, jet fuel and others, Emefiele stated that other chemicals being imported into Nigeria will be a thing of the past with the commencement of the refinery.

He explains, “On the petrochemical, because that is also supposed to be coming online about that same period. That petrochemical plant will be producing 900,000 tons of polyethylene and polypropylene granules. Nigeria’s annual consumption of polypropylene and polyethylene granules is less than 200,000 tons.

“What does that mean? By contribution in import content, again, FX content, that is close to about five per cent of our imports. If you save five per cent of your imports, save another 30 per cent in petroleum products, and then even fertiliser, that is only maybe another two per cent to three per cent. We are moving close to saving about 40 per cent foreign exchange import for the country.”

Relatedly, Crude Oil Refinery Owners Association of Nigeria (CORAN) extended its congratulations to Mr. Aliko Dangote and his team at Dangote refinery on the remarkable achievement of commencing the production of Premium Motor Spirit (PMS).

CORAN said that the significant milestone was not only a testament to the dedication and hard work of Dangote refinery, but also reflected the collective resolve of CORAN to contribute meaningfully to the economic development and wellbeing of Nigeria.

A statement by CORAN Chairman, Mr. Momoh Oyarekhua, said, “This achievement aligns perfectly with CORAN’s vision of creating sustainable refining solutions that drive economic growth and our mission to efficiently increase the refining capacity of the country. It is members like Dangote refinery who bring our goals to life, and we are proud to have the refinery as a key part of our community.

“We look forward to witnessing the continued success of Dangote refinery and the positive impact it will have on our industry and the broader economy.” 

The leadership of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) equally expressed its solidarity with the management of Dangote Refinery and Petrochemical Company, as the facility commenced operations.

In a letter addressed to President/CEO, Dangote Group, on the historic landmark, the union described the feat as epoch-making.

The letter signed by NUPENG General Secretary, Labi Olawale said, “This day has been long anticipated and awaited with bated breath and prayers not only by Nigerians but by the entire continent of Africa. We are very proud of you, Alhaji Aliko Dangote, you are a man with uncommon courage and determination. You have dared to dream and thread where no mortal has ever done.

“This remarkable achievement at the world’s largest single-train petroleum refinery and petrochemical plant is a testament to your unwavering commitment, innovation, and excellence in the energy sector.

“We recognise the immense efforts and dedication that have gone into making this vision a reality. The successful production of PMS at this state of the-art facility not only marks a significant milestone for Dangote refinery but also represents a monumental step forward for Nigeria’s energy independence and economic growth.”

NUPENG said that it was excited about the opportunities the development will bring in terms of employment for Nigerians, socioeconomic prosperity and monumental growth of our dear country.

“We look forward to continue to collaborate and partner with Dangote Refinery and Petrochemical Company to ensure the growth and sustainability of the oil and gas industry.”