Dangote to stop sourcing forex from CBN

The Dangote Group has disclosed that it would soon stop accessing foreign exchange (forex) from the Central Bank of Nigeria (CBN).

The conglomerate has also revealed that it would expand its operations into the steel sector.

Group Managing Director, Dangote Group, Olakunle Alake, made this disclosure during a panel discussion at the Infrastructure Solutions Summit organised by the African Finance Corporation (AFC) in Abuja, yesterday.

According to him, “We do have something right now that we are trying to complete. I think this is the major project and that is our major focus right now. In another couple of years, we will not go to Central Bank for foreign exchange for any of our activities, because at the end of the day, it’s a double situation, you import product which means you are creating jobs outside Nigeria and you struggle to get the forex.

“You drill for oil, you export oil, you don’t refine it. That way you are just killing employment. Our focus is two things. One, we make sure we look at things that can be produced locally, we create employment that way and we create value that way”.

He added that Dangote was planning to invest heavily in the steel sector of the economy.

According to him, “apart from the oil and gas project that we are doing, we are also one of the key stakeholders that has supported the government in terms of infrastructure tax credit scheme and we are using local banks to build that capacity across Nigeria.

“For us, steel is one of the key areas. You recall that years back government decided that steel was major and set up Ajaokuta Steel and Delta Steel.”