Aliko Dangote, President and Chief Executive of the Dangote
Group, one of Nigeria’s most diversified conglomerates, at the weekend
applauded the decision by the Central Bank of Nigeria (CBN) to stop sale of
foreign exchange to importers of 40 identified goods and services that can be
produced in the country.
Some of the products affected by the CBN directive to banks
and Bureaux de Change operators include Rice, cement, margarine, palm
kernel/palm oil products/vegetable oil, meat and processed meat products,
vegetable and processed vegetable products, poultry –chicken, eggs, turkey; and
private airplanes/jets, among others.
Addressing the media in Lagos, he assured that with the $9
billion Dangote oil refinery under construction in Lagos, expected to begin
production in 2017, the group could rake in up to $10 billion in foreign
exchange from exporting cement and petroleum products.
By 2017 also, he assured, “we (Dangote Group) would not go
near CBN for forex.”
Dangote, Africa’s richest man, added that work is at advance
stage on the Lagos-based petroleum products refinery whose capacity has so far
been increased thrice even before it opens its doors for business.
The plant initially had capacity to refine 400,000 barrels
of crude per day, before it was increased to 500,000bpd; before the latest
upgrade to 650,000bpd.
He noted the need for local refining of petroleum products
as it helps to conserve the huge forex spent on importation of such products.
According to Dangote “38 per cent of forex is spent on
importing petroleum products,” adding that with its increased capacity, the
refinery can satisfy 100 per cent of the nation’s demand and still leave some
for export.
“Our export would translate to $10 billion in revenue,” he
added, arguing that government may still need to subsidise sale of crude oil to
refineries in the country for them to operate profitably.
Dangote said most of the refineries in sub-saharan Africa
are operating at a huge loss, and that the only ones that are profitable today
are those in Cote D’Ivoire and South Africa.
Agreeing with those who want subsidy of petroleum products
removed to save Nigeria from further haemorrhage of its external reserves,
Dangote noted that when this is done, the fund would be channeled into other
areas of national need. He said that although the price of petrol may initially
rise to N110 per litre, it would eventually drop to a market determined level,
as the importers move to drive volume and remain competitive.
By the end of this year, Dangote Cement plants across the
country would operate on coal, he assured instead of gas which is problematic.
He also said that the factories would be emission-free despite the conversion
to coal, which the country has in abundance.
The group’s Senegal cement plant, for example, he said,
“operates on coal and there is no emission… it is very clean. Running on coal
by our study is cheaper than gas,” recalling that “in 2005, we were paying $1
(for gas), today it is $4 and industries in Lagos are paying $7.”
While explaining that his decision to invest outside of
Nigeria is driven by the need to diversify, Dangote assured that “by 2017, we
would have (cement) plants in 17 countries.”
Still on the CBN directive, he agreed on the need for
Nigerians to patronise locally made goods, as it would ensure that over time,
such ‘substandard products’ would improve significantly in quality for the good
of the economy.
“As we patronise locally made products, they would keep
improving,” he stressed.
Fielding questions, he insisted that there is noting wrong
with the rice grown in the country, stressing the need to encourage
agriculture, even as he wondered why Nigeria would import “raw sugar with so
much land and water in the country.
“My greatest concern is that in the next four and a half
years, we (Nigeria) are going to be over 200 million people so many mouths to
feed.”
The industrialist however expressed fear that the decision
could put enormous pressure on black market operators who sell forex and are
patronised by ordinary citizens who would not ordinarily qualify to purchase
foreign currency from banks and BDCs.
He also used the occasion to call for a Gross Domestic
Product (GDP) that is inclusive of both the rich and the poor and all strata of
the society.
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