How government is supporting Dangote Refinery
The Dangote refinery is a private venture but there is no denying that the Nigerian government interest in the project is high as it is banking on the project to tackle fuel shortages the country has suffered from for years.
In order to facilitate the project, the government is making concessions to ensure the successful completion of the
the refinery on the scheduled date of December 2019.
Minister of State for Petroleum Resources Ibe Kachikwu, during one of his visit to refinery site said the government was ready to play its part by granting pioneer status and duty waivers for the project.
The Group General Manager Crude Oil Marketing Division of the Nigerian National Petroleum Corporation (NNPC) Mr. Mele Kyari explained that “pioneer status” and “duty waivers” have typically been granted to the Dangote Group in respect of the refinery.
Asked if the government is considering some form of concession in terms of crude supply to the plant so as to keep petroleum product prices from the refinery low, Kyari said, “No, crude will be Free on Board (FOB) at international price.”
He told Daily Trust on Sunday through a text that the cost of petroleum products from the Dangote Refinery particularly PMS will be lower than import.
“The cost (petroleum products) will be less freight. So landing cost will be lower than import. There may still be underrecovery if the N145/litre is maintained at current crude price. So, they must be kept whole or else they export all,” Kyari said.