(Interview)
Nigeria will soon begin to generate about $1 billion annually when Dangote’s fertilizer company begins operations, according to Godwin Emefiele in an interview he granted journalists shortly after inspecting the facility in Lagos. Yemisi Izuora reports
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What is the CBN interests in theses projects?
The Central Bank is interested for two reasons, Mr. President Muhammadu Buhari, had come up and said there is a need at this time especially when the currency is going through challenges that there is a need for us to diversify the things of the Nigerian economy from oil into other areas where we can earn revenue.
You have heard Dangote talk about the fertilizer plant which will start commercial production in May, 2020, and three years ago when I talked about this complex and this project, people thought we were joking.
Nigeria has always been an importer of fertilizer, we all know about the fertilizer scandal in Nigeria and the president in his wisdom said we would no longer import fertilizer.
This particular fertilizer plant of Aliko Dangote which is 3 million tons per annum that will generate 1 billion dollars, not only that but 25 per cent of it will be used for domestic consumption to help in our agriculture transformation and the rest of the 75 per cent will be exported and we will earn minimum of 750 million dollars per annum only on fertilizer.
The second project is the refinery, with 650,000 barrels capacity,
The refinery will not only satisfy local consumption but will also position Nigeria as a major petroleum exporting country.
And I know Nigeria is so central that this will serve almost all of Africa, and you can imagine the cheap cost of freight.
This project is so strategically positioned that it will even make the final price of petroleum within and outside Nigeria to even be lower that those import that come from other parts of the world.
Today we import all our propylene granule but the petrochemical plant will produce propylene so everything you produce that has a plastic base will be produced from this plant to satisfy not only domestic consumptions but also export.
Are other entrepreneurs ready to make investments of this nature?
Well we thank Dangote but we need to encourage other Nigerians.
We go to different summits in different parts of the world, what people tell us is that we need to think about how to work with Nigerians and not how to give to Nigerians and for them to work with Nigerians.
Nigerians themselves must stand tall and be ready to come out and help their country especially now we have low interest rates, with the things government are doing to increase employment levels, to get our industries back alive again and low interest regime we could never have it better than now and that’s why I’m saying the few of the local Nigerians that are making money in different other areas and services as the rest of them.
This is the time for them to come out and join the likes of Aliko Dangote and help grow the economy or even before that, its not about the government growing the economy, people sit down and watch television and say growth rate is below population rate.
Who will help to make the country’s growth rate higher than population rate where we can say we are really a prosperous country.
Who does it if its not the private sector not just government, government is just an enabler so this is a time for all of us to come out and I repeat there is low interest rate regime now.
What level of support are you considering at this point?
We would want to support any Nigerian or foreigner who identifies Nigeria as a good investment destination whatever we can do to help you, we will do it.
In the area of banking industry, in the area of foreign exchange, to import raw materials and equipments, in the area of agriculture the Central Bank is ready to support.
That is why we are forcing the banks today so they can do what is right and lend money to who needs money and so they must play that role for the good of our country.
They must act as catalyst to development and that is what they are doing. They are not doing exactly what we want but they have started. I believe through the course of time we will get there.
So we looking at a situation where Nigerian banks will begin to support Nigerian entrepreneurs?
It is not the fault of Nigerian banks and I repeat, Nigerian banks are willing but they need credible people that can come in and borrow money and pay. If I look at the size or number of loans that are in AMCOM today it is amazing.
Today, the truth is most of them are Nigerians so Nigerian banks need people like Aliko Dangote, Tony Elumelu, Jim Ovia. and so on, let them come out and be counted in this journey. Today there are 34 thousand people working in this facility in the next two months it will double to about 65 – 70 thousand working in this complex.
Ao when Aliko finishes all the people who are working here that is the laborers, welders where are they going, If we don’t find a place that this people will go next then you can imagine what will happen that is why we have kidnapping and all that. That is why the entrepreneurs should come out and contemplate projects where people can be employed, that is how the country sees prosperity. That is why we will be coming out boldly.
I am here in the next four years and three months we will support anybody, let them come out and we will put in policies that will make sure that coming out to develop our economy both the agriculture or manufacturing industry, the Central Bank rakes in dollars to fund our obligations we will appreciate them and we will continue to do so.
Sir, you have been here before, can you tell us what has changed so far?
First is that we need to really thank Dangote for the determination, for the large heart, this is not a project that an ordinary person will ever have contemplated, I was here in 2016, I was also here in 2019, now I’m here in 2020.
The reason I am here today is to see to the progress of what that has been done on these three projects which comprises of Fertilizer which is the second largest fertilizer plant in the world, the petrochemical as well as the refinery.
The three of them, these projects when they were contemplated about five years ago were almost close to about 7-9 billion dollars after the adjustment in currency and some of the things that were not anticipated but are now part of the project and you can imagine how much It is today, if I had to guess its nothing less than 15 billion dollars.
Is CBN solely funding the project?
This project we are talking about there is 50 per cent equity out of at least 12 billion dollars, so which bank will see someone who puts in even 10 per cent equity and you are a credible person and will not support you in a period where they are looking for areas where they can invest their liquidity.
We just need credible people to come out and be honest.
In any case the Central Bank will not allow you to borrow money and not pay again because the era has gone. If you take a loan you will pay, if you don’t pay your money it will be taken wherever you are keeping it.
If you are riding private jet, it will be seized so you will be seen to be truly liquidated. But what we are saying is that the banks are ready, so those who are credible should come up and contemplate projects, the only way we can get our industries back alive again is to do this and the government is ready to give whatever protection you want or whatever support you want.
Because we do not want a situation where government makes policies and there are people who do their own styles to undermine the government, it will not happen again.
