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Blames continuous naira depreciation for low local production
From IKECHUKWU NNADI, Enugu
The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has urged the federal government and other stakeholders in the nation’s economy to take steps to protect the Dangote Refinery and other local production initiatives, as the backbone of an export economy that Nigeria should aim at.
The Chamber, however, blamed the continuous depreciation of the Naira for the low local production capacity of the country at the moment.
In a statement issued in Enugu yesterday (Monday, November 11), and made available to newsmen in Enugu, President of the Chamber, Mr Odeiga Jideonwo said after watching closely and monitoring events surrounding Nigeria’s economy in recent time, the Chamber has come to the conclusion “the high level of importation of finished goods remains the major reason for the continuous decline of the naira, especially when we continue to import products that can be sourced or produced locally.”
“Our recent study of China reveals that the economic growth being experienced in China presently is a function of a strict policy of the government supporting locally based or indigenous companies to produce for 100 per cent local consumption as well as for export,” Jideonwo said.
“With their local consumption demand being satisfied by goods produced locally, they have settled, to a large extent, the major economic issues of exchange rate.
“Interestingly, stepping it up to manufacturing various products for export, helps China to build its foreign reserves which as at September, 2024 were $3.3trn.
“This is more than twice the size of Japan’s reserves. This feat by China remains the result of the decisive policies of the government and the good people of China.
“The Dangote Petroleum Refinery is currently one of Nigeria’s gifts that need to be encouraged at this time when the economy of Nigeria is declining.
“Since oil is currently the major source of foreign earnings for Nigeria, players in the industry that have shown capacity in moving the country from net exporter of crude oil to also exporter of refined petroleum products, should be encouraged by the government and indeed all stakeholders.”
The ECCIMA president described Dangote Refinery as a “timely private sector initiative whose impact on the economy is not to be underrated.”
“ECCIMA believes that the byproducts of this refinery, which has the capacity to refine 650,000 barrels per day and has increased production from 25 million litres to 30 million litres in October, 2024, will be ancillary to other indigenous companies and this will indeed foster economic growth,” Jideonwo emphasized.
“It is obvious that the growth of Dangote Petroleum Refinery is necessary, as it remains the core for the needed diversification of our economy.
“Every other sector will definitely need the byproducts of this refinery. Nigeria’s foreign earnings will also grow if Dangote’s refined petroleum products are exposed and accepted in the international market.
“With these reasons, ECCIMA calls on the Government and all stakeholders to rally round and support the Dangote Petroleum Refinery as well as other local manufacturers and industries for the growth of the national economy.”
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