The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said  that the country spends almost 40 per cent of its scarce foreign exchange (FX) on the importation of petroleum products as well as petrochemicals, which continues to put pressure on the naira exchange rate.

Speaking during a media briefing on the sidelines of the ongoing International Monetary Fund (IMF)/World Bank annual meetings in Washington DC, Emefiele, however, expressed optimism that once the Dangote Refinery and Petrochemical Plant commence operations around July next year, the country would be in a position to be able to save 40 per cent of the FX it spends on the importation of petroleum products as well as petrochemicals.

This, he also pointed out would enable the Central Bank to be in a better position to float the naira.

"On the Dangote Refinery, by the time it begins production latest July next year, it is going to be a major source to save forex for Nigeria. Right now, the overall forex we spend on imported items, the importation of petroleum products consumes close to 30 per cent.

"By the time you add diesel, aviation fuel, petrol and the rest of that which makes up the 30 per cent, the Dangote Refinery has the capacity to produce 650,000 barrels per day. There is a domestic component that is about 455,000 barrels. Even if the 455,000 is what is sold to Dangote in naira alone, it is going to be a major forex savings for Nigeria," he explained.

Responding to a question, the CBN governor revealed that the total cost of the Dangote Refinery project was about $17.5 billion and the total equity from the Dangote Group in the project was $9 billion.
So, less than $9 billion was contributed by a combination of foreign and local banks and the CBN, he disclosed.