Dangote refinery to promote import substitution, increase forex supply

Dangote refinery will promote the Central Bank of Nigeria’s import substitute objective and increase foreign exchange supply.

This was disclosed by the Central Bank Governor, Mr Godwin Emefiele, in a documentary titled “Fuelling Nigeria’s Future: The world’s biggest refinery.”

Emefiele was clear about his support for Dangote Refinery and the possibility of it helping Nigeria’s economy.

He said, “Dangote refinery would help achieve the import substitution objective, which means that products that were imported would be produced locally. Thereby saving foreign exchange that the CBN uses to fund the import of these products.“

Recall that the NNPC has taken a stake in Dangote Refinery, and with the backing of the apex bank, it is clear that Dangote has the backing of the regulators to support his venture.

Aliko Dangote also reiterated that the move would help to bring stability to the naira.

He said, “It would give us a more stable currency because currently, 25 per cent of foreign exchange goes into the importation of petrol products. But right now the refinery has the full capacity to meet the demands for these products.”