Dangote Refinery able to fixing Nigeria’s foreign exchange issues; catalysing {economic} improvement, says S&P International
Worldwide {financial} analytics company, S&P International, has described the 650,000 barrels per day (bpd) Dangote Oil Refinery and Petrochemicals firm as able to resolving Nigeria’s overseas trade (foreign exchange) situation and its enormous strain on the native Naira foreign money, whereas additionally catalysing the nation’s {economic} improvement.
S&P International, headquartered in Manhattan, New York Metropolis, disclosed this throughout an onsite go to to the Dangote Refinery at Ibeju-Lekki, Lagos as a part of its sovereign credit score scores evaluation of Nigeria.
The group from the worldwide score company had been accompanied by officers from the Federal Ministry of Finance.
S&P famous that the most important single-train refinery advanced on the planet would bolster Nigeria’s oil sector and, extra importantly, even have a optimistic impression on its rising financial system.
Director and Lead Analyst, Sovereign and Worldwide Public Finance Scores, S&P International Scores, Ravi Bhatia, who led the delegation to Lagos, mentioned Dangote refinery would remodel Nigeria right into a web exporter of petroleum merchandise. He added that this transformation is predicted to spice up income technology and alleviate the present strain on the nation’s overseas trade reserves.
“It’s a very spectacular facility, in a position to course of 650,000 barrels a day, when in full capability. It’s the largest single-train refinery advanced on the planet. It got here out fairly rapidly. Nigeria is a giant exporter of crude however has points with importing refined fuels. So, there’s a hole out there the place crude may be refined in Nigeria, lower your expenses that manner, and probably avoid wasting overseas trade. This will likely be optimistic for the financial system within the medium time period. It seems to be optimistic from our evaluation,” Bhatia mentioned after an over four-hour tour of the ability.
Additionally, in a chat with the media, Vice President of Oil and Fuel at Dangote Industries Restricted (DIL), Devakumar Edwin, who led the group throughout the tour of the ability, reiterated that by harnessing Africa’s plentiful crude oil assets to provide refined merchandise regionally, the corporate goals to catalyse a virtuous cycle of commercial improvement, job creation, and {economic} prosperity.
e additionally revealed that, as earlier promised, the corporate will begin the production of premium motor spirit (PMS), this month (July).
Noting that merchandise from the $20 billion facility are of top quality and meet worldwide requirements, Edwin mentioned it will probably meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses accessible for export.
The S&P group counseled the President of Dangote Industries Restricted, Aliko Dangote, for integrating superior applied sciences and high quality management measures, together with a state-of-the-art Central Management Unit guaranteeing clean automation of operations.
Different members of the group of the worldwide score company embrace the Affiliate Director, Sovereign Scores, Maxmillian McGraw; Director, Company Scores, Omegu Collocott; Senior Analyst, {Bank} Scores, Charlotte Masvongo, and Director, {Financial} Companies, Samira Mensah.
At present working at 350,000 barrels per day capability, Edwin mentioned the refinery is slated to scale as much as at the least 500,000 barrels per day capability by July/August, commencing the refining of petrol and ultra-low sulphur diesel.
He famous that the refinery, designed to course of a variety of crudes together with numerous African and Center Jap crudes, in addition to US Gentle Oil, conforms to Euro V specs.
As well as, it’s designed to adjust to US EPA, European Union (EU) emission norms, the Division of Petroleum Sources (DPR) emission/effluent norms, and the African Refiners and Distribution Affiliation (ARDA) requirements.
Whereas noting that the majority refineries had been constructed by overseas firms, he mentioned it’s a factor of satisfaction {that a} Nigerian firm designed and constructed the world’s largest single-train refinery advanced whereas appearing immediately as its personal Engineering, Procurement, and Building (EPC) contractor. The refinery additionally incorporates a self-sufficient marine facility able to dealing with the world’s largest vessels.
“The refinery can produce the very best quality merchandise on the planet, Euro V grade. It is without doubt one of the energy-efficient refineries and it’s extremely environmentally pleasant. It’s refined with a excessive stage of automation. The biggest single prepare refinery on the planet is 100 per cent designed, engineered, and constructed by a Nigerian firm as EPC contractor,” he mentioned.
Nigeria, one of many world’s main oil-producing nations, exports all its crude oil for refining and subsequently imports refined merchandise resulting from a scarcity of operational refineries. It’s estimated that Nigeria imports at the least 50 million litres of petrol per day to satisfy home demand.
In keeping with knowledge from the Nationwide Bureau of Statistics (NBS) in its International Commerce Statistics for the Fourth Quarter of 2023, Nigeria spent roughly N12 trillion on the importation of petroleum merchandise in 2023, together with premium motor spirit (PMS), generally often called petrol. This determine marks an 18.68% improve in comparison with the N10 trillion spent on gas imports in 2022.
