REVEALED: Dangote lost N50 billion to Buhari’s flexible foreign exchange

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– Aliko Dangote says he has lost N50 billion to Buhari’s flexible foreign exchange

– Dangote said the diversification of Nigeria’s economy was long overdue and that one sector that the government can focuses on is agriculture

aliko-dangote

Aliko Dangote

After announcing flexible foreign exchange policy, Nigeria and Africa’s richest man Aliko Dangote has revealed that his company lost N50 billion to President Muhammadu Buhari policy.

Dangote revealed this to newsmen over the weekend when Vice President Yemi Osinbajo toured the project sites of Dangote Fertiliser and Dangote Refinery in Lekki, Lagos.

READ ALSO: Half of crude oil will be refined in Nigeria, exported by 2021– Dangote promises

“We have been badly affected like any other company,” he said, arguing that operational costs totalled $100 million each month due to recurring expenses, such as the purchase of parts for cement production and running a fleet of 9,000 trucks.

“When you are talking about 20 billion dollars worth of projects, what is 161 million? One-hundred-and-sixty-one million dollars is what I need in just six weeks,” he said.

“This week (last week), the Central Bank removed the peg that has held the naira at the official rate of 197 for the last 16 months, leading to a 30 per cent devaluation as the currency traded freely on the interbank market.

“This devaluation alone, we have lost over 50 billion naira ($176 million),” he said. “The gas, which is our main source of power, is priced in dollars. If there is 40 per cent devaluation, your price will go up by 40 per cent. Every single aspect of the production will go up by that percentage,” he added.

Dangote said the diversification of Nigeria’s economy was long overdue and that one sector that the government can focuses on is agriculture.

 “By the time we complete this project, there will be opportunity to take on agriculture and say bye to poverty, because there will be jobs, no sector has more job potential than agriculture,” Dangote added.

READ ALSO: D

 “Mechanical completion will be end of 2018 but we will start producing in 2019. This site is the biggest site in the world, the refinery is the biggest single refinery in the world, the petrochemicals is 13 times bigger than Eleme petrochemicals while the fertiliser plant will be 10 times bigger than former National Fertiliser company. The project, with the  $2 billion fertiliser unit  was the funded through loans, export credit agencies and our own equity,” Dangote said.

 

The post REVEALED: Dangote lost N50 billion to Buhari’s flexible foreign exchange appeared first on Nigeria News today & Breaking news | Nigerian newspapers.

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