Nigeria’s foreign exchange (forex) problem and the significant pressure it puts on the local Naira currency can be resolved by the Dangote Oil Refinery and Petrochemicals company, S&P Global, an international financial analytics company, has said.
As part of its evaluation of Nigeria’s sovereign credit ratings, S&P Global, which has its headquarters in Manhattan, New York City, revealed this information while on site at the Dangote Refinery in Ibeju-Lekki, Lagos.
According to S&P, Nigeria’s oil industry and expanding economy would benefit from the world’s largest single-train refinery complex.
The delegation was led to Lagos by Ravi Bhatia, director and lead analyst at S&P Global Ratings for sovereign and international public finance ratings.
Bhatia predicted that the Dangote refinery will turn Nigeria into a net exporter of petroleum products.
He added that this shift will increase revenue production and lessen the strain currently placed on the nation’s foreign exchange reserves.
Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited (DIL), who guided the team through the facility, also reaffirmed in an interview with the media that the company hopes to spark a positive cycle of industrial development, job creation, and economic prosperity by using Africa’s plentiful crude oil resources to produce refined products locally.
Additionally, he disclosed that the company will begin producing premium motor spirit (PMS) this month, July, as previously stated.
Edwin stated that the $20 billion facility can supply all of Nigeria’s needs for aviation fuel, kerosene, diesel, and gasoline while also producing goods of a high caliber that satisfy international standards. Any excess fuel could be exported.
The S&P team applauded Dangote Industries Limited President Aliko Dangote for incorporating cutting-edge technologies and quality control procedures, such as a cutting-edge Central Control Unit that guarantees seamless automation of processes.
Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulphur diesel.
He mentioned that the refinery complies with Euro V requirements and is built to process a variety of crudes, including light oil from the United States and various African and Middle Eastern countries. Furthermore, it is engineered to meet the emission criteria set forth by the US EPA, the European Union (EU), the Department of Petroleum Resources (DPR), the African Refiners and Distribution Association (ARDA), and other regulatory bodies.
He said:
TimesNow.com.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPC Ltd) declared a state of emergency on crude oil production.
Speaking at the ongoing 2024 Nigeria Oil and Gas (NOG) Energy Week in Abuja on Tuesday, June 2, NNPC Ltd’s group chief executive officer, Mele Kyari, declared a decisive move to address forces and challenges hindering crude oil production in the country.
According to the NNPC Limited boss, Nigeria can conveniently produce two million barrels of crude oil daily without deploying new rigs.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
