Exporting Crude, Not Supplying Dangote Refinery Wrong — Rewane

Prominent economist Bismarck Rewane said it is wrong for Nigeria to export crude on forward contract and not supply Dangote refinery.

Rewane stated this in an interview on Channels Television’s Business Morning show on Tuesday.

The economist noted that by securing its first cargo deal of about six million barrels, the Dangote Refinery will be able to get crude in Nigeria, refine it in Nigeria, and export refined petroleum products to West African countries.

He said, “It doesn’t make sense for Nigeria to be exporting crude on Forward Contract and not be able to refine its own product for its own citizens and for West and Central Africa, it doesn’t make sense.

“This refinery is likely to be listed in the Nigerian Stock Exchange 2024-2025. By listing this $19bn to $20bn investment, it increases market capitalization of the Nigerian Stock Market by 60 percent.

“Not only that, the Dangote Group itself pays taxes of over N146bn a year and pays dividends to share holders of N357bn a year,” he said.

The Managing Director of Financial Derivatives Company Limited further stated, “So, N146bn a year and N357bn a year taxes; It is not a capitalistic investment but it is democratising the process of shareholders just like when MTN was a private company.

“When MTN declares a dividend today, everybody in town is happy because its ownership is democratised. It is now considered to be Nigerian and that’s transformation. The same thing is happening for these kind of companies which are dominant and leaders in all industries,” he said.

Recall that the Dangote refinery, which is sited in Lagos and owned by Africa’s richest man, Aliko Dangote, is expected to commence operations in December with 350,000 barrels a day.