By Oluwakemi Kindness
The President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), George Elombi, says the Dangote Petroleum Refinery has played a major role in stabilising the naira by reducing Nigeria’s reliance on imported petroleum products.
Speaking at a Mid-Year Media Roundtable in Abuja on Wednesday, Elombi said the refinery eased pressure on the country’s foreign exchange market by cutting fuel import demand and supporting crude-for-naira transactions.
“It wasn’t believed, but the currency stabilised because of that,” Elombi said.
He noted that the refinery also proved its strategic importance during the recent Middle East crisis, when disruptions in the Gulf pushed up global oil prices but did not trigger shortages of refined petroleum products across Africa.
According to Elombi, the refinery’s impact extends beyond Nigeria, making it a model for industrial development across the continent.
He disclosed that Afreximbank approved $2.5 billion of the $4 billion financing requested by the Dangote Group to support the refinery’s expansion.
The Afreximbank president said the bank is also financing refinery and petroleum storage infrastructure in Ethiopia, Kenya, Tanzania, Uganda, Angola, Chad, the Republic of Congo and Namibia to strengthen Africa’s energy security and reduce dependence on external supply chains.
Elombi added that the Dangote Group’s fertiliser business has become a major export platform, supplying products to Germany, Brazil and other international markets.
However, he said Afreximbank wants more of those exports directed to African countries to boost intra-African trade.
Describing Nigeria as Afreximbank’s largest and most strategic market, Elombi said the country’s industrial projects are critical to the continent’s economic future.
He also highlighted the role of the Pan-African Payment and Settlement System (PAPSS) in reducing pressure on foreign exchange markets.
He explained that the platform recently enabled the Dangote Group and Ethiopian Airlines to settle transactions by exchanging Ethiopian birr and naira directly, eliminating the need to source scarce foreign exchange.
