- CBN defends naira with $5.62bn in three months
- CBN to issue N570.4m treasury bills in Q2
- External reserves loses $52m in 16 days
- Countries complaining about Nigeria’s multiple foreign exchange rates says Okonjo
- Crypto exchanges move to control scam activities in Nigeria
- Senate demands detailed report on alleged N4tn unremitted funds
- A guide for investing in Bitcoin
- As ghost of fuel subsidy removal lurks around
- Fuel price hike looms nationwide as marketers meet
- Headline inflation reaches 16.47 per cent
How Dangote refinery will boost Nigeria’s economy
- Updated: March 5, 2021
The Major Oil Marketers Association of Nigeria (MOMAN) says the 650,000 BPD Dangote Refinery in Ibeju Lekki, Lagos will be extremely beneficial to Nigeria when it begins production.
Mr Clement Isong, Executive Secretary, MOMAN, made this known while speaking with the News Agency of Nigeria (NAN) on Thursday in Lagos.
Isong said there was merit in insisting on a minimum in-country investment in order to encourage investment in the oil and gas industry.
“However, as a core principle, MOMAN believes that free-market competition remains the best protection for the final consumer and this would be our most important consideration.
“MOMAN’s position would therefore be, not to limit the importation of refined products to refiners only, but allow importers with a set minimum level of investment in the oil and gas supply chain in Nigeria.
“Furthermore, there would be a need for us to operate under a uniform exchange rate regime irrespective of who imports or refines,” he said.
According to Isong, this also includes the exchange rate used for the purchase of crude in Naira or the purchase of refined products in order to ensure a level playing field.
He noted that the concept of buying crude in Naira from the government and selling its refined products in Naira to Nigerians was an interesting concept that needed to be properly worked out.
“It is an interesting concept not just for Dangote refinery but for all refineries in Nigeria to be able to access the crude in Naira.
“The Governor of Central Bank of Nigeria on television espoused the benefits it would bring the country in terms of foreign exchange rate management.
“Obviously, details would need to be worked out as several questions remain unanswered.
“For instance, since crude is priced internationally in US dollars, what rate would be used to convert to Naira?
“Secondly, is it correct to say that if you use crude locally for refining, it is not included in the Organisation of Petroleum Exporting Countries (OPEC) quota?
”If this is correct, to fully benefit, therefore, we would need to produce enough to meet our full export quota under the OPEC regime and optimise the foreign exchange inflows as well as produce enough locally to meet local refining requirements,” Isong said.
He said an additional benefit would be that any refined products that were in excess of Nigeria’s needs could be exported for additional foreign exchange earnings.
NAN