Truth is, the APC seriously needs to win the next round of elections in Rivers State from The Wards all the way to the Governorship Elections! If you know then you know!

oyejideogunjumo:


If we sell for 350 how many people will be able to afford it? Africa is backward because of lack of innovation.

Well, all West African countries sell above N300.And all of them have not died...and all of them are at our level (and no, Niger, Chad, and Benin and even Ghana and Liberia are not richer than we are)

The thing is, you want to eat your cake and have it. You want functioning refineries, and at the same time you want to pay less than the cost of what it takes to make the fuel.You want the refinereis to run at a loss so that you can have cheap fuel.

If you were running a business selling yam at N1000 a tuber , after buying it at N800 per tuber from the famer, and then government steps in and tells you to reduce your price to N200, and pays you a subsidy of N100 per yam sold, and does not let you increase your price, would you make a profit to run your business.? No.

That is what we have been doing to our petroleum business. That is why we import fuel like water because for decades we sold fuel at a loss from all our refineireis. And they all broke down...because profit was not enough to incentivise them to run well.

Other countries tried what you are thinking of, and they all ended up in severe economic crisis. The China you like...sells fuel at N402. They have working refinereis because they make enough of a profit to make them work.

Its just another avenue to looth more money

Subsidybad21:


Well, all West African countries sell above N300.And all of them have not died...and all of them are at our level (and no, Niger, Chad, and Benin and even Ghana and Liberia are not richer than we are)

The thing is, you want to eat your cake and have it. You want functioning refineries, and at the same time you want to pay less than the cost of what it takes to make the fuel.You want the refinereis to run at a loss so that you can have cheap fuel.

If you were running a business selling yam at N1000 a tuber , after buying it at N800 per tuber from the famer, and then government steps in and tells you to reduce your price to N200, and pays you a subsidy of N100 per yam sold, and does not let you increase your price, would you make a profit to run your business.? No.

That is what we have been doing to our petroleum business. That is why we import fuel like water because for decades we sold fuel at a loss from all our refineireis. And they all broke down...because profit was not enough to incentivise them to run well.

Other countries tried what you are thinking of, and they all ended up in severe economic crisis. The China you like...sells fuel at N402. They have working refinereis because they make enough of a profit to make them work.

All these TURECI (technicalities ) is because Dangote failed to deliver as expected since 2017. When FG made plans to import fuels from the Chad refinery I noticed the frustration of the government. As it is FG cannot rely on Dangote delivery date again. Refineries have been running at huge loss and the deals at NNPC and DPR is very high. Privatization remains the best option. Turn Around Maintenance of refinery is a political contract since the military era. I know the political intricacy that went behind the maintenance contract of Kaduna Refinery under Abacha.

Just that OBJ time was limited as at 2007, all the refineries would have been sold. As at now, Dangote and other investors would have been responsible for maintenance and management of those refineries.

babaolofin:


All these TURECI (technicalities ) is because Dangote failed to deliver as expected since 2017. When FG made plans to import fuels from the Chad refinery I noticed the frustration of the government. As it is FG cannot rely on Dangote delivery date again. Refineries have been running at huge loss and the deals at NNPC and DPR is very high. Privatization remains the best option. Turn Around Maintenance of refinery is a political contract since the military era. I know the political intricacy that went behind the maintenance contract of Kaduna Refinery under Abacha.

Well , in previous posts , I have stated that refineries must be privatized along with NNPC...IN ADDITION to deregulation.

I wonder where you got the idea I don't back privatization.

At the same time, privatization does not mean that the investor would come and build stuff for you and not make a profit to pay for maintenance and future upgrades...that's where deregulation comes in

By the way, there are four other refineries under construction apart from Dangote. And 20 others who have been licensed to set up refinereis.

That's the way to go.

triple996:
what is wrong with Nigerians self
if they have not built anything you guys will complain . they are trying to get our rifinary working you are still complaining. is it not the 9ja Delta that is complaining of marginalization especially about the non working refinaries. now that government is planning make them functional again, you guys are still complaining.
chaii

my dear, some of us make use of our senses, ok. It cost Dangote 15bilion to built new refenary, n govt want to use 750bilion to renovet not to built new one o, that money can build 25 additional n working refineries according to wat it cost Dangote to build his. That money has been mapped out, how to be shared. PDP worse govt but APC n Buhari is d greatest mistake that has ever happen to Nigeria.

OtunbaJ:
my dear, some of us make use of our senses, ok. It cost Dangote 15bilion to built new refenary, n govt want to use 750bilion to renovet not to built new one o, that money can build 25 additional n working refineries according to wat it cost Dangote to build his. That money has been mapped out, how to be shared. PDP worse govt but APC n Buhari is d greatest mistake that has ever happen to Nigeria.

You are on point!.........

TinubuGoQuench:

SHUT UP THERE AND READ MORE BOOKS ON ECONOMICS AND FINANCE!!! DON'T JUST SIT IN YOUR ONE ROOM APARTMENT TO TYPE RUBBISH

of all those that qouted me yours was the dumbest

triple996:


of all those that qouted me
yours was the dumbest

SHUT UP!

TinubuGoQuench:

SHUT UP!

. mumu

adenigga:

https://m.punchng.com/News/FG-set-to-go-ahead-with-$1.5bn-refinery-revamp-despite-criticisms

Lori iro