The CBN Governor of Nigeria, Godwin Emefiele, has asserted that the Federal Government of Nigeria helped Dangote build his refinery. Emefiele’s statement is contained in a larger statement he made concerning the issue of foreign exchange. It is believed that the CBN Governor was replying questions concerning the economic impact of Dangote’s new refinery.
Federal Government helped Dangote Build his Refinery – Godwin Emefiele, CBN Governor
Plans for the construction of Dangote Refinery started in 2013. Then, it was just plans and no full commitment into the project. It was in 2016 that the process kicked off on full gear.
The project meant a lot of the Federal Government at that time. This is because since the discovery of crude oil in Nigeria, they country has never refined a good amount of crude oil products. The refineries that were built in Shagari’s era as president didn’t work for a long time before packing up. This is why the government was heavily interested in Dangote’s refinery.
The refinery will not only save Nigeria the money used in purchasing and shipping refined crude oil products, it will also improve the situation of foreign exchange crisis in the country. It is reported that the refinery has the capacity of saving and making about $20 billion in foreign exchange for the country. This is amount sent into Nigeria by Nigerians in the diaspora. What this means is that the foreign exchange crisis will reduce by over 20%.
This is the reason why the CBN Governor, Godwin Emefiele, is encouraging Dangote Refinery and Group to sell foreign currencies as the official rate to Nigerian banks so Nigerians can buy them easily. Emefiele goes on to state that the government has a stake in the company so has the right to ask for this. Of course, Dangote Refinery and Group would likely keep to the arrangement.
However, will this in anyway improve the FX crisis? It will. Though, it won’t eliminate it totally. It will only scratch the surface.