Forex Depreciation Spikes Cost of Dangote Oil Refinery By N2trillion

Chairman of Dangote Group, Alhaji Aliko Dangote, has revealed that the ongoing refinery project in Lekki area of Lagos which was earlier projected to cost N2.8trillion would now be completed at the cost of N4.8trillion.

According to him, this unfortunate development was as a result of the prevailing foreign exchange depreciation in the country.

Dangote stressed that contrary to speculations, the company had not gotten substantial forex from the Central Bank of Nigeria.

He however said Nigeria would save $7.5bn yearly on import substitution from the project when completed, adding that it would crash the price of Premium Motor Spirit (PMS) because the product is refined in-country.

“By the time we finish our gas pipeline, it can generate about 12,000MW and we can export to other African countries. We would have the capacity to store four billion litres of products, and can load 2,680 trucks per day,” he said.

The business tycoon also spoke on allegations of conflict with the host community, saying there were no issues, adding that the past issues were between two communities and the state government.