Dangote: ECCIMA blames continuous Naira depreciation to low local production

The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has blamed the continuous depreciation of the Naira to low local production capacity of the country.

The chamber made the disclosure in a statement issued by its President, Mr Odeiga Jideonwo and made available to newsmen in Enugu on Monday.

According to Jideonwo, the chamber has been watching closely and monitoring events surrounding the Nigeria’s economy in recent times.

“The high level of importation of finished goods remains the major reason for the continuous decline of 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 to support locally based or indigenous companies to produce for 100 per cent local consumption as well as for export.

“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 of various products for export, helps China build its foreign reserves which as at September, 2024 were $3.3 billion.

“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 gift that needs 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 said that Dangote Petroleum Refinery remained a timely private sector initiative whose impact on the economy would not 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.

“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 foreign earnings will also grow if Dangote Refined Petroleum products is exposed and accepted in the international market.

“With these therefore, 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 national economy.