Dangote Refinery A Game Changer – Buhari

President Muhammadu Buhari, yesterday, expressed confidence that the 650,000 barrels per day Dangote Petroleum Refinery in Lagos will enable Nigeria to achieve self-sufficiency in refined products and have surplus for export.

Given its processing capacity, the refinery is more than able to meet all of Nigeria’s domestic fuel consumption, which is about 450,000 barrels per day whilst the excess will be available for export.

Speaking at the commissioning of the refinery in Lagos, which was attended by Heads of State of Ghana, Togo, Niger and Senegal and a representative of the President of Chad, Buhari described the feat as a significant milestone for Nigeria’s economy and a game changer for the downstream petroleum products market in the entire African region.

‘‘This mega industry we are commissioning today is a clear example of what can be achieved when entrepreneurs are encouraged and supported, and when an enabling environment is created for investments and for businesses to thrive.

‘‘I am confident that my successor, His Excellency Asiwaju Bola Ahmed Tinubu, will sustain the improvement in our economic and business environment and strengthen the framework of our public-private partnership policies to accelerate the pace of our economic growth and development.

‘‘I am happy to leave our economy in very competent hands,’’ he said.

Buhari, who commended Alhaji Aliko Dangote’s leadership in executing the 650,000 barrels per day refinery, urged other entrepreneurs to emulate his example in driving economic growth and realizing Nigeria’s economic potential.

He stressed the need for African countries to come together, integrate their economies, eliminate trade barriers, and rally their populations to achieve Agenda 2063 for the continent’s prosperity.

‘‘I urge and encourage our other great entrepreneurs to emulate this iconic Nigerian industrialist and join the government in accelerating our growth to realize our country’s globally recognized economic potential.

‘‘When I travel around Africa and meet and engage my brother Heads of State, and I am delighted some of their Excellences are here, I often sense a quiet expectation that our country is blessed with resources and human capacity to lead Africa’s rise to economic prosperity and the attainment of Agenda 2063 – ‘The Africa we all want.’

‘‘But to achieve the goals of Agenda 2063, Africa must come together – we must integrate our economies, eliminate trade barriers and energize our youthful population to scale up our productive capacity,” he said.

While calling on African leaders to create necessary conditions for the private sector to grow, and partner with the public sector to accelerate economic growth across the continent, he urged that ‘‘we must not allow outside powers to use some of our leaders to destabilize our economic and political trajectory.”

Africa’s richest man and the President of Dangote Group, Aliko Dangote, disclosed that the newly commissioned refinery would employ over 100,000 Nigerian youths as well as generate over $21 billion, saving the country huge forex that would have been used for fuel importation. The company, he said, now has over 33,000 employees.

Much to the excitement of Nigerians, Dangote said the commissioning has marked the beginning of the new journey of self-sufficiency in refined petroleum products and exportation of the same just as achieved in cement and lately fertiliser.

Dangote, who lamented that the current fuel crisis has had a negative impact on the nation’s economy, highlighted events leading to his firm deciding to build its refinery after his attempt to acquire one of the existing moribund refineries did not materialise.

He stressed that he decided to change his marketing strategy and settle for the gigantic project ever undertaken by an individual the world over.

According to him, the refinery plant would be run at the highest effective and efficient level for maximum benefits to all Nigerians, adding, “We will replicate what we achieved in cement and fertiliser by attaining self-sufficiency and becoming a net exporter.”

Dangote assured Nigerians that 40 per cent of the production capacity will be available for export with the coming onstream of the plant guaranteeing raw plastic materials, and pharmaceutical industries.

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, while commending Dangote for the successful completion of the refinery project, said it would not only aid the nation’s domestic petrol needs but also help in generating export revenues.

He said the project, which was initially estimated to cost about $9 billion when it started in 2013, was completed with a total of $18.5bn with funding distributed into 50 per cent equity investment and 50 per cent debt finance.

He noted that the commercial loan component of the project was financed majorly by domestic banks with the balance sourced from foreign banks while the CBN provided about N125 billion to cover domestic currency requirements for the venture.

“What you may not be fully aware of, Your Excellences, is that the Dangote Group has started repaying some of the commercial loans even before the commissioning of this facility.

“This reflects the commercial capability of the group and its chairman. I am pleased to inform everyone today that, following extensive repayments, outstanding debt has dropped appreciably from over US$9 billion to US$3 billion,” he said.