Billionaire investor Femi Otedola has projected that the naira might strengthen to beneath N1,000 per greenback earlier than the top of the 12 months, citing Dangote Petroleum Refinery’s attainment of full capability.
In a publish on X on Thursday, Otedola described the feat achieved by the refinery as a key turning level for Nigeria’s overseas change outlook.
The billionaire congratulated Africa’s richest man, Aliko Dangote, on what he described as a transformational milestone for Nigeria and the continent.
What Otedola is saying
Otedola famous that the refinery’s capability to produce as much as 75 million litres of Premium Motor Spirit day by day might considerably scale back the nation’s dependence on imported gas.
- “With home refining now firmly underway after many years of reliance on imports, stress on the overseas change market ought to ease considerably,” Otedola wrote.
- “I’m optimistic that the naira will strengthen meaningfully, and buying and selling beneath N1,000/$1 earlier than 12 months finish is more and more inside attain,” he added.
Past the present milestone, Otedola disclosed that Dangote has commenced an extra $12 billion growth challenge aimed toward growing refining capability to 1.4 million barrels per day.
The growth may even embody the manufacturing of two.4 million tonnes of polypropylene and 400,000 metric tonnes of Linear Alkyl Benzene, a key enter in detergent manufacturing.
Polypropylene is broadly utilized in plastics and packaging, whereas Linear Alkyl Benzene is a significant uncooked materials for family and industrial cleansing merchandise.
Elevated native manufacturing of those inputs might scale back import dependence in Nigeria’s manufacturing sector and additional decrease overseas change demand.
“Aliko shouldn’t be stopping right here,” Otedola wrote, noting that work on the growth has already commenced.
Backstory
Nigeria has traditionally spent billions of {dollars} yearly importing refined petroleum merchandise on account of restricted home refining capability, a pattern that has exerted sustained stress on the overseas change market.
- Gas imports have historically been one of many largest parts of Nigeria’s import invoice, driving demand for US {dollars} and contributing to change charge volatility.
- Analysts have lengthy argued that enormous scale home refining might assist preserve overseas reserves by reducing the necessity for greenback denominated gas imports.
Otedola’s remarks align with this argument, linking the refinery’s ramp as much as full capability with the potential easing of demand within the FX market.
What you must know
The Dangote Refinery, situated within the Lekki Free Zone in Lagos, is designed to refine 650,000 barrels of crude oil per day, making it the most important single-train refinery on the earth.
At full output, it’s anticipated to fulfill home demand for petrol, diesel and aviation gas, with surplus volumes obtainable for export.
- BusinessTimes reported that the refinery has reached its full designed capability, marking what the corporate describes as a historic milestone and making it the primary refinery globally to realize full nameplate capability in a single practice of that scale.
- In a press release issued on Wednesday, February 11, 2026, the refinery stated the milestone was achieved following the optimisation of its Crude Distillation Unit (CDU) and Motor Spirit (MS) manufacturing block, additional strengthening steady-state operations at Africa’s largest oil refining facility.
As a part of the method, the refinery has commenced an intensive 72-hour collection of efficiency take a look at runs in collaboration with its know-how licensor, UOP, to validate operational effectivity and ensure that each one crucial parameters meet international requirements.
