Ibn Chambas, expert applaud Dangote Refinery 

Chairman of African Union High Level Panel on Sudan, Dr Mohamed Ibn Chambas, has said the Dangote Refinery is a testament to Nigeria’s ingenuity and African entrepreneurship.

“Tinubu has demonstrated commitment to creating an enabling business environment in Nigeria in general and the smooth operation of the refinery in particular. I encourage all Africans across the continent and in the diaspora to visit the Dangote Refinery for inspection.
  
“A visit to the refinery provides an insight into the tremendous potential and hope there is, not only for Nigeria but, indeed, for the entire African continent,” he said.

MEANWHILE, an energy expert and CEO of Diary Hills, Kelvin Emmanuel, has lauded Federal Government’s naira-for-crude sale agreement, allowing the Nigerian National Petroleum Corporation (NNPC) to sell petroleum to local refineries, including the Dangote Refinery in naira.

Emmanuel, in an interview with ARISE NEWS, yesterday, described the move as a step in the right direction towards economic stabilisation and more efficient management of Nigeria’s petroleum pressure on the country’s foreign exchange market.

Emmanuel highlighted the importance of the naira-based crude oil swap arrangement, stating that the global system for pricing Premium Motor Spirit (PMS), also known as gasoline, necessitated an adaptive approach for Nigeria and by denominating crude oil sales in naira, Nigeria could better align its pricing structure with domestic economic realities while still participating in the global oil market.

“It is a step in the right direction and it is in line with the law. It is very important because when you look at the framework for pricing of PMS, you will see that there is a global system for pricing gasoline all over the world. What this naira based crude swap arrangement basically says, according to what I have seen, is that the government is basically providing feedstock to the Dangote refinery in naira, at an agreed upon exchange rate. I think the starting amount is about 385,000 metric tonnes. He still has 265,000 metric tonnes he still needs to source from other areas.”

Emmanuel pointed out that, prior to this deal, the demand for foreign exchange to import crude oil had significantly impacted the value of the naira and with this new framework, the government and the Dangote Refinery had a clearer roadmap for determining the volume of PMS to be supplied to Nigeria, equating to the value of crude delivered to the refinery.