Nigeria is to become the largest exporter of fertilizer in Africa as the $2 billion Dangote Fertilizers Company is set to commence full production by May this year.
Already pre commissioning activities has started and the companys is expected to go full blast come May this year
Aliko Dangote, president of Dangote Refinery and Petrochemical Company disclosed this while conducting round Godwin Emefule, Governor of Central Bank of Nigeria the complex at lekki Export Processing zone, Lagos weekend.
Reacting to the development at the complex, the CBN governor praised the efforts of the president of Dangote Group for taking bold steps to change the base of the Nigerian economy
He said even though Nigeria is almost self sufficient in fertilizer production the size of the fertilizer company is twice that existing fertilizer company in the country, stating also that by the time the refinery in the complex takes off by the first quarter of 2020, Nigeria will not only be self sufficient in the production of refined products, but will also join the league of those that export petroleum products out of the country.
“I am sure by that time Dangote completes all these projects the CBN will begin to ask Dangote to sell foreign exchange to it”.
Commenting further, the CBN governors also said Petro chemical plants is also about 10 that of the petrochemical plant of the one in Rivers State.
“This certainly a transformational project for Nigeria and it total keys into the objective of this government. That is advocating for conservation of foreign exchange and diversification of the economy”, he said.
He said to put things in proper perspective. “By the time you dimension the size of the foreign exchange that is used to import petroleum products, it is at least 1/3 of the foreign exchange CBN spend to bring goods and services to the country”.
The apex bank he stated will add more to the 42 items that are in foreign exchange restricted list to about 50. And when importation of petroleum products is added to the restriction list when Dangote refinery comes on stream this would have helped the country to save a lot of foreign exchange in the nearest future.
According To him, the apex bank is going to get more aggressive in ensuring that food items, more and more of them are added in to the foreign exchange restriction list
He said by the time the foreign exchange on import and those on food items are saved the government would have boosted it foreign exchange reserve as about 55 per cent of the foreign exchange spent by government or CBN goes on importing petroleum products and food.
He said the CBN will support any Nigerian company that engages in manufacturing items , agriculture value chains. “I have said before and I am repeating it again, that if there are companies that are interested in diversify the economy, and want to join government in restructuring the base of the Nigerian economy , CBN will be ready to stand bye to provide funding both in foreign exchange and Naira dollar needed to get that project off the ground”.
The Dangote Refinery, he said is a $9 billion project that is being funded by both local and foreign banks adding that CBN only has committed about N75 billion in supporting it
“We would continue to show support to individuals and companies that displayed the determination to support the government and support and CBN in restructuring the base of the Nigerian economy”.
Commenting further on the project, Aliko Dangote said that the biggest problems that we have is that Nigeria import more than what she produce like any other African country stating that by the time the fertilizer company is finished Nigeria will be the largest exporting fertilizer country in Africa, the largest exporter of petrochemicals products, and the biggest in Africa in exporting petroleum products.
Olusola Bello
