‘It Does Not Make Sense To Export Crude And Not Supply Dangote Refinery’ — Rewane

Bismarck Rewane, a prominent economist and Managing Director of Financial Derivatives Company Limited, has expressed criticism over Nigeria’s approach to exporting crude oil, particularly in relation to the indigenous Dangote Refinery.

Speaking on Channels Television’s Business Morning show, Rewane argued the importance of supplying crude to the Dangote Refinery.

He emphasized that this would enable Nigeria to refine crude domestically and export refined petroleum products to West African nations, especially after securing a deal for about six million barrels.

The economist 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.

“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 owned by Aliko Dangote, is expected to commence operations in December with 350,000 barrels a day.