Renowned economist Bismarck Rewane says it makes no sense for the country to export crude on forward contracts and not supply indigenous firms like Dangote Refinery.
Rewane, the Managing Director of Financial Derivatives Company Limited, made this known on Tuesday during a live appearance on Channels Television’s Business show.
He said 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.
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 on the Nigerian Stock Exchange in 2024–2025. By listing this $19bn to $20bn investment, it increases the 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 shareholders of N357bn a year.
“So, N146bn a year and N357bn a year in taxes; it is not a capitalistic investment, but it is democratizing the process for shareholders, just like when MTN was a private company.
“When MTN declares a dividend today, everybody in town is happy because its ownership is democratized. It is now considered to be Nigerian, and that’s transformation. The same thing is happening for these kinds 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.
