CEO of the Dangote Group, Aliko Dangote, has again said his $20 billion Lagos-based refinery will stabilize the Naira against the dollar on the foreign currency market.
The African richest man said this in a 25-minute interview with Bloomberg Television on Monday.
According to him, about 40 per cent of Nigeria’s foreign exchange was used in the importation of petroleum products.
He said when Dangote Refinery starts distribution of its petrol from September 15, 2024, demand for dollars will reduce by 40 percent.
“And then we will also sell in the domestic market. What that will do is that it’s going to remove 40 percent pressure on the naira.
“So because see, the petroleum products consume about 40 percent of foreign exchange, so you know, and then, you know, it’s like you have 40 percent of demand being taken out, so that can actually stabilize the naira and even if they subsidize, they would know what they are paying for,” he said.
In an update on the crude-in-Naira contract between Nigerian and Dangote Refinery, he said that the company is hopeful of meeting with the presidential committee this week.
“The deal is to give the government something that they want. It’s also a win-win situation for all and it would benefit the country”, he added.
Dangote had earlier blamed the current price of its petrol on the cost of imported crude oil.
This assurance was given by the Nigerian government through the Minister of Finance, Wale Edun on August 19 that the crude supplies to Dangote Refinery in Naira would be done by October 2024.
