Business
‘Dangote Refinery Offers Positive Trajectory For Nigeria’s Exchange Rate’
Muda Yusuf is the Director General of Lagos Chamber of Commerce and Industry (LCCI). He holds degrees in Economics from the University of Ilorin and the University of Lagos. Passionate about private sector development and a strong private sector advocate, he has played active roles in public private partnerships on all levels of government. In this interview, Yusuf, says the completion of the Dangote Refinery is a game changer for the Nigerian oil and gas sector. He believes that the refinery will reduce pressure on the country’s foreign reserves and foreign exchange earnings. What impact would the coming on stream of the Dangote Refinery have on the Nigeria economy? Dangote Refinery will on completion be a game changer for the Nigerian oil & gas industry as well as the Nigerian Economy.
The impact will be profound and multi-dimensional. Currently, the biggest pressure on our foreign reserves and foreign exchange earnings is the importation of petroleum products. With a refinery capacity of 650,000 barrels per day, petrochemical plant that would produce 780KTPA of polypropylene, 500 KTPA of polyethylene, and a fertiliser plant with a capacity to produce 3 million tonnes of Urea per annum, the import substitution effect would be significant. An estimated $10 billion is spent by the country annually on the importation of Petroleum products.
Therefore, the coming on board of Dangote Refinery will conserve foreign exchange through the sales of Petroleum products directly to the domestic market, thus drastically reducing importation of petroleum products. Additionally, the impact of this on the macro-economic dynamics will be quite significant. Refineries come with many other related industries, particularly Petrochemicals and fertilizer plant. This implies that many of the raw materials currently being imported, especially in the plastics and chemical industries will be sourced from the Petro-chemical plants.” Similarly, the fertilizer plant which is highly dependent on gas will eliminate the need for importation of fertilizer from our scarce foreign exchange.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.