Femi-Otedola
Tosin Ogunrinde
Femi Otedola, a billionaire investor, predicts the Nigerian naira will strengthen to below N1,000 per dollar before the end of the year, thanks to the Dangote Petroleum Refinery achieving full operational capacity. The refinery can now produce up to 75 million litres of Premium Motor Spirit (PMS) daily, significantly reducing Nigeria’s reliance on imported fuel .
This milestone marks a transformative moment for Nigeria’s energy landscape and economy. With domestic refining underway, pressure on the foreign exchange market should ease, Otedola notes. He’s optimistic about the naira’s potential to strengthen, citing the refinery’s impact on Nigeria’s foreign exchange outlook.
The Dangote Refinery’s full capacity is expected to conserve foreign exchange and improve the country’s balance of payments position. Nigeria has spent billions annually importing refined petroleum products, contributing to strain on the naira and external reserves.
Otedola congratulated Aliko Dangote, describing the achievement as historic and a key driver for energy self-sufficiency and industrial expansion. The refinery’s expansion plans include increasing capacity to 1.4 million barrels per day and producing petrochemicals like polypropylene and Linear Alkyl Benzene.
The refinery’s full operation is expected to reduce Nigeria’s dependence on imported fuel, easing pressure on the foreign exchange market. Economic analysts believe large-scale local refining will conserve foreign exchange and improve the country’s balance of payments position.
The Dangote Refinery has already reduced petrol prices from N799 to N774 per litre, showcasing its potential to stabilize the market. With sustained production, Nigeria could see improved FX liquidity and a stronger naira.
Otedola’s prediction hinges on the refinery’s continued operation and expansion. If successful, it could signal a turning point for Nigeria’s economy and foreign exchange outlook.
