Financial analyst and educator Kalu Aja has highlighted that the most significant advantage of the Dangote Refinery is its ability to capture by-products locally that were previously left abroad, which could increase Nigeria\u2019s foreign exchange earnings.<\/p>\n
<\/p>\n
In a post on his X handle on Wednesday, Aja described the Dangote Refinery as a major milestone for Nigeria, comparable only to the emergence of Nigeria Liquefied Natural Gas (NLNG). He noted that while the refinery would save the country transportation costs in dollars previously spent on bringing crude oil from abroad, other associated costs like insurance and interest remain.<\/p>\n
<\/p>\n
Aja further explained that Nigerians should not expect a significant drop in the cost of Premium Motor Spirit (PMS) unless the government decides to subsidize crude oil and the dollar exchange rate.<\/p>\n
<\/p>\n
Breaking down the process of refining PMS from crude oil, Aja mentioned that the costs of extracting crude oil, refining it, and marketing PMS are the same whether the refinery is in Lagos or abroad. However, the real savings come from transporting crude oil to Lagos instead of abroad, and the local capture of by-products, which can be exported to earn more foreign exchange.<\/p>\n
<\/p>\n
\u201cThe real benefit Dangote Refinery brings is that those associated by-products that we left in \u2018Malta\u2019 will now be captured by Dangote locally. Thus, Nigeria will earn MORE by exporting those by-products, so net net, the Dangote Refinery earns Nigeria more FX,\u201d Aja wrote.<\/p>\n
<\/p>\n
He emphasized that while the refinery is a significant development, it will not drastically reduce the PMS bill unless there are government interventions in subsidies.<\/p>\n","protected":false},"excerpt":{"rendered":"
Financial analyst and educator Kalu Aja has highlighted that the most significant advantage of the Dangote Refinery is its ability to capture by-products locally that were previously left abroad, which could increase Nigeria\u2019s foreign exchange earnings. In a post on his X handle on Wednesday, Aja described the Dangote Refinery as a major milestone […]<\/p>\n","protected":false},"author":14,"featured_media":47127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-47125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/47125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=47125"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/47125\/revisions"}],"predecessor-version":[{"id":47134,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/47125\/revisions\/47134"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/47127"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=47125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=47125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=47125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}