The nation should not be exporting crude on forward contracts to an indigenous company like Dangote Refinery, according to renowned economist Bismarck Rewane.
Rewane, the Managing Director of Financial Derivatives Company Limited, announced this during a live appearance on Channels Television’s Business Morning show on Tuesday.
The Dangote Refinery, he claimed, will be able to receive crude in Nigeria, refine it in Nigeria, and export refined petroleum products to West African countries after securing its first cargo agreement of roughly six million barrels.
“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 it doesn’t make sense for West and Central Africa,” the analyst said.
“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.
“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.”
The refinery 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.