We lost N50 Billion to Forex policy – Aliko Dangote

Last weekend, Aliko Dangote, president of Dangote group, declared that his company lost ₦50 billion to the flexible foreign exchange policy.
It will be recalled that last week, The Central Bank of Nigeria (CBN) scrapped the dual exchange rate policy, creating a single window for the trade in naira.
Mr Dangote made this declaration when the Vice President, Yemi Osobanjo, took a tour through the project sites of Dangote Fertiliser and Refinery in Lekki, Lagos.
He argued that operational costs totalled $100 million each month due to recurring expenses adding that, “we have been badly affected like any other company.”
“This week, the Central Bank removed the peg that has held the naira at the official rate of 197 for the last 16 months, leading to a 30 per cent devaluation as the currency traded freely on the interbank market…”
“The gas, which is our main source of power, is priced in dollars. If there is 40 per cent devaluation, your price will go up by 40 per cent. Every single aspect of the production will go up by that percentage,” he added.
According to Dangote, the diversification of Nigeria’s economy was long overdue and one sector that the government can focus on is Agriculture.
His investment in fertilizer production, according to him, was a sure way the diversification into agriculture could succeed because it will amount to little if focus is directed to agriculture and fertilisers would be imported.
“By the time we complete this project, there will be opportunity to take on agriculture and say bye to poverty, because there will be jobs, no sector has more job potential than agriculture,” he said.
He also told the Vice-President that the  refinery estimated at $12 billion would have a capacity of 650,000 barrels a day. There will be market for the refined products because only three African countries – South Africa, Egypt and Cote D’Ivoire have functioning refineries, he had said.
He further stated that; “Mechanical completion will be end of 2018 but we will start producing in 2019.”
“This site is the biggest site in the world, the refinery is the biggest single refinery in the world, the petrochemicals is 13 times bigger than Eleme petrochemicals while the fertiliser plant will be 10 times bigger than former National Fertiliser company. The project, with the $2 billion fertiliser unit was the funded through loans, export credit agencies and our own equity,” he concluded.

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