The federal government is projected to earn about $500m in three years from taxes and royalties when the 650,000 barrel per day Dangote refineries come on stream with petrochemical plant in 2017, gas project in 2018 and refinery in early 2019, BusinesDay has learnt.
This was revealed on the occasion of the inspection tour of the Dangote Refineries and Petrochimical plant located in Lekki, Lagos taken by Yemi Osinbajo. Nigeria’s vice President along with Ambode Akinwunmi, Lagos State governor and some key ministers.
“This is incredible if that can be done because it would be a major strategic asset for Nigeria, It would boost our power supply tremendously,” the Vice President said.
Osinbajo commended the project, saying it is an incredible industrial undertaken, the most ambitious in Africa.
The vice president’s entourage included Kemi Adeosun, finance minister, Babatunde Fashola, minister for Power, Works and Housing, Okechukwu Enelema, minister of trade and investment and Kayode Fayemi, minster of solid ministry.
On his part, the Lagos state governor, Akinwunmi Ambode, said the project when completed would have great multiplier effects on the nation’s economy:
“Firstly, there is a refinery project that is ongoing, second there is a petrochemical project that is also ongoing. There is pipeline transfer project that brings gas from Bonny down to Olokonla and down to Lekki and then the fourth one is the fertilizer project all in one location.”
Ambode said the projects would also be critical to the economic growth of the Lagos East and West Senatorial Districts which according to him, will be open to massive investment opportunities on completion.
Aliko Dangote, Chairman of Dangote Group said the Gas Project upon completion will have the capacity to produce about three billion cubic feet of gas daily, which would permanently address the two billion cubic feet daily gas required to power the country.
The refinery is projected to add 135,000 direct jobs another 100,000 indirect jobs that would be generated while income accruable to the Federal Government would be in the region of over $500million in three years.
Ambode praised the decision of the Vice President to lead the inspection visit to the projects assured that his administration would provide the necessary support to ensure that the projects are completed within schedule.
“The coming of the Vice President to inspect this project is instructive and a sign post that the Federal Government is in support of what is going on us and the truth is this, we might not be able to show you all that is going on here but in another few weeks, we will do an aerial view of this project and also do a documentary because for the very first time we are going to have a Petrochemical project that is coming on stream by December 2017; a Refinery that is coming on stream by the first quarter of 2019 and also the Gas project that is coming on stream by 2018. You can just imagine or visualize what that means to the economy of Lagos,” Governor Ambode said.
“It is important that we understand the debt of what has happened here and also use it as a platform to encourage other investors that Lagos is on the rise and the future of Lagos is very bright,” the Governor said.
ISAAC ANYAOGU
