The Real Reason Dangote Abandoned Nigeria's Crude Oil - Politics

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The Real Reason Dangote Abandoned Nigeria's Crude Oil - Politics - Nairaland

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The Real Reason Dangote Abandoned Nigeria's Crude Oil by shortgun(m): 2:03am On Feb 10

I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink. grin

Modified: Importing many items proves more cost-effective than sourcing them locally. Examples include cement, rice, poultry, fish, and more....

I will write about rice one day, how FG in collusion with "local rice farmers" took a bag from 7k to 70k. angry

21 Likes 4 Shares

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by FarmPlanetNG: 2:06am On Feb 10

Sourcing crude oil from USA can never be cheaper regardless of the bottlenecks in domestic transactions. Can't sleep 2AM. Damn

2 Likes 3 Shares

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by shortgun(m): 2:10am On Feb 10

FarmPlanetNG:
Sourcing crude oil from USA can never be cheaper regardless of the bottlenecks in domestic transactions. Can't sleep 2AM. Damn

Only if you know the amount demanded for freight costs alone.

16 Likes 1 Share

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by malali: 2:24am On Feb 10

[b]Selling crude oil to Dangote in dollars instead of Naira for his refinery in Nigeria offers several advantages:

International Standard: The crude oil market operates predominantly in US dollars. Selling in dollars aligns with global market standards, simplifying transactions and reducing currency conversion risks.

Market Stability: The stability of the US dollar compared to the Naira can provide assurance to both parties involved in the transaction. This stability reduces the risk associated with fluctuations in the value of the Naira, which can be volatile due to various economic factors.

Access to Foreign Exchange: Selling in dollars allows Dangote's refinery to have easier access to foreign exchange markets for purchasing equipment, spare parts, and other necessary imports for refinery operations. This access can be crucial for ensuring smooth operations and avoiding potential delays or shortages due to currency constraints.

International Trade: Dealing in dollars facilitates international trade relationships. It enables Dangote's refinery to engage with global suppliers and customers more efficiently, as most international transactions are conducted in dollars.

Investor Confidence: Selling crude oil in dollars can enhance investor confidence in Dangote's refinery project. Investors often prefer dealing in stable, widely accepted currencies like the US dollar, which can attract more investment and support the project's growth and development.

Inflation Hedge: Given Nigeria's history of inflation and currency devaluation, transacting in dollars provides a hedge against domestic currency fluctuations. It helps protect the value of revenue generated from crude oil sales, ensuring the sustainability of the refinery's operations.

Overall, selling crude oil to Dangote in dollars offers numerous benefits in terms of market stability, access to foreign exchange, international trade, investor confidence, and protection against currency risks, making it a favorable choice for both parties involved.[/b]

If Dangote imports crude oil from outside Nigeria in dollars to spite the government, tax the imported crude 50-100%, that should deter him, afterall alot of the refinery was built with subsidised dollar through elemiefele (CBN Governor).
Dangote mines his cement raw materials free of charge, and sells the cement and keeps all the profit. Dangote should be made to pay for the limestone and other raw materials or he should be saddled with giant community projects in all the states he mines raw materials from.
We have to stand up to unchecked monopoly at the expense of 300 million Nigerians.
If he refuses, open up the market, auction new licenses to new people, give him competition. If we do not open up the capital market, we will continue to be held hostage by monopolies.
Goodluck starting that port harcourt refinery, now that we have Africa's biggest monopolist in the refining business.

6 Likes 1 Share

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Omihanifa: 2:30am On Feb 10

Dangote abandoned nogeria crude simply because nnpc and other oil majors don't have enough to feed that refinery.

3 Likes 2 Shares

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Abufo: 2:38am On Feb 10

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

they will drink their own blood and eat their own flesh! The curse will fall like rain upon them........the sky above them will be like bulletproof glass and the soil beneath their feet will be like iron...........ngwa ! nigeria make we see you take 1 inch out of poverty........Until Nigeria gives God's own children their liberty...that land will NEVER make any progress! Una neva see suffer yet..........Somalia will be better than Nigeria until you REPENT of your Satanic filth!

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Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by matify83: 3:47am On Feb 10

shortgun:

Only if you know the amount demanded for freight costs alone.

You will do us a favour by referencing your sources so we also don't fall foul of spreading unverified beer palour gists.

Correction: Dangote refinery was originally designed to handle crude grades from multiple sources, Nigeria's inclusive.

It's illogical to pay for freight at an exorbitant rate within Nigeria than from USA.

3 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by CoronaVirusPro: 4:14am On Feb 10

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

You should be killed!

You called Reno a dumbo and look at the gibberish you composed?

Convince me that God created you?

4 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Catapault: 4:16am On Feb 10

It doesn't actually matter where Dangote is getting his oil from.

Nigeria doesn't lack buyers for its crude oil. It's problem is it doesn't pump out enough oil to fill its OPEC quota.

Dangote's job is to refine crude oil into petrochemicals, petrol, and petroleum products.

Once they're doing that, that's it. Where they get their crude is none of our business.

2 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Rolings: 4:43am On Feb 10

shortgun:

[b]After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

So will they use naira to buy the Crude?
They will still use the same dollars they refused to pay to Nigeria to USA..... doesn't add up.
Tru something else

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Jlow2: 4:54am On Feb 10

American crude is cheaper because its heavier and not easier to refine like the Nigerian crude, many countries offer cheaper crudes based on circumstances, that which might still cover the freight and still cheaper than getting from nigeria

3 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by kokoA(m): 5:04am On Feb 10

Beer palour gist.

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by TheBillyonaire: 5:06am On Feb 10

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

Be quiet.

Importing of crude is just a decoy to keep the ruse going. He will prefer to buy from bunkering network and plan to get oil wells to drill the oil for almost free and refine for global sales. It is all strategic business games.

2 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by bewla(m): 5:19am On Feb 10

FarmPlanetNG:
Sourcing crude oil from USA can never be cheaper regardless of the bottlenecks in domestic transactions. Can't sleep 2AM. Damn

This guy is con man

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by DeLaRue: 5:53am On Feb 10

Dangote refused to buy Nigerian crude oil in dollars. Is he buying from the US in naira? Op's assertion is certainly questionable.

Dangote can source crude from any country if the price is better. In any case Nigeria doesn't even have enough crude to supply Dangote at present.

As for government cronies trying to force Dangote to use their ship at unjustifiable prices, I am not surprised, afterall greed is second nature to many in this country.

Dangote should buy from wherever he likes.

2 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by CodeTemplar: 6:22am On Feb 10

Let him buy from USA, refine, and sell back to Intl market. That way he makes dollars but we know he has limited use for dollar and so might just sell the profit component of his dollar earning. We should take that as more forex inflow for all Nigerians and allow him breathe. After all govt has 20% stake in the refinery and get to share his gains with him.
Don't forget govt also have their own refineries and Dangote isn't dictating to them.

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Solsix(m): 6:50am On Feb 10

BlakKluKluxKlan:

You wrote absolute trash laced with unnecessary insults.
Crude oil is a foreign currency earner and the standard practice is payment in dollars.
It is incredible for you to believe that sourcing for crude from the US will be cheaper than from Nigeria. Where's your economic sense ?
Stop writing stuff and nonsense out of sheer hatred.
Stop thinking through your anus, use your brain rather than emotion to look at issues.
Reno is more in the know than armchair critics like you.

Are goods imported from overseas not cheaper than the one produced in Nigeria in most cases??

4 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by ivolt: 6:55am On Feb 10

So, the cabal were not interested in the first 6 shipments which was ferried by foreign ships?

If this is not delusions probably inspired in a beer parlour, then it is time to take your malaria drugs.

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Beautifulday: 7:11am On Feb 10

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

If this is true, Dangote go finish Nigeria finally with anger.

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by gabbytabby: 7:19am On Feb 10

If anything it is the oil companies (the real owners of the oil ) that are demanding payment in dollars and not the FG so stop your lies and propaganda.

They have always sold in dollars and pay their staff in dollars and such need time to adjust to the new normal. All of these should not have been allowed ie paying staff in dollars.

Both Dangote and the oil companies need to adjust to the new normal.

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by BlakKluKluxKlan(m): 7:19am On Feb 10

Solsix:

Are goods imported from overseas not cheaper than the one produced in Nigeria in most cases??

Are you sure ?
Give examples.

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by a4cube: 7:24am On Feb 10

Omihanifa:
Dangote abandoned nogeria crude simply because nnpc and other oil majors don't have enough to feed that refinery.

That means he did not abandon it rather they don't have stock to supply him. If and only if what you wrote is correct.

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by a4cube: 7:29am On Feb 10

Catapault:
It doesn't actually matter where Dangote is getting his oil from.

Nigeria doesn't lack buyers for its crude oil. It's problem is it doesn't pump out enough oil to fill its OPEC quota.

Dangote's job is to refine crude oil into petrochemicals, petrol, and petroleum products.

Once they're doing that, that's it. Where they get their crude is none of our business.

NGF said some days ago the our crude was sold 8n advance by Buhari govt. If true, that means we lack crude to supply to new customers.

2 Likes

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by Peppysco: 7:53am On Feb 10

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

Hmmm, writing so much trash with arrogance and nativity, no surprised anyways, you have your target audience. To make you and your audience understand the jargons you cooked there, I'll ask you this question in a layman's term. Assuming your assertion was true, do you really think sourcing for forex from foreign banks, at high interest rates by Dangote in order to buy from the US is a cheaper or better alternative than buying from the Nigerian government? Not even considering the cost of frieght and other logistics.
Dude, you've only succeeded in confusing more like minded people like you.

1 Like

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by coputa(m): 8:02am On Feb 10

FarmPlanetNG:
Sourcing crude oil from USA can never be cheaper regardless of the bottlenecks in domestic transactions. Can't sleep 2AM. Damn

but Dangote was mandated to pay the freight cost by nigeria government,so it cannot be cheaper than that of the US

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by coputa(m): 8:04am On Feb 10

shortgun:
I laughed very hard when Reno the dumbo posted that the reason Dangote is getting Crude oil outside the shores of Nigeria for his refinery in Lagos was because Nigeria's crude oil have already been contracted far into the future. And we have a quota from OPEC....
As usual, many fell for his senseless, baseless and nonsensical assertions without bothering to verify or ask critical questions like.
How will a refinery that was conceptualized,designed and built to refine Nigerian crude oil not have adequate provisions for Nigerian crude oil supply?

Well, the real gist and the crux of the matter is that the federal government refused to accept naira payments for crude oil sales to Dangote refinery, insisting that Dangote pay only in dollars. Despite Dangote's reservations about the government's motive for requesting foreign currency in a domestic transaction where naira should be the only legal tender , the federal government remained adamant, demanding payment solely in dollars.
Also, the federal government mandated that Dangote Refinery cover the freight costs for vessels selected by government cronies, equivalent to the rates charged by overseas vessels, along with port charges and landing costs—all payable in dollars.

After crunching the numbers , the management of Dangote Refinery concluded that sourcing crude oil from outside Nigeria from far away USA would result in lower costs. Thus, they decided to abandon the Nigerian crude, leaving it for Tinubu and his cronies to drink.

Dangote refinery was designed to refine different crude aside Nigeria's

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by FarmPlanetNG: 8:07am On Feb 10

coputa:
Dangote refinery was designed to refine different crude aside Nigeria's

The oil fields belongs to corporations not FG

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by coputa(m): 8:09am On Feb 10

FarmPlanetNG:

The oil fields belongs to corporations not FG

what is the difference between NNPL and the federal government

Re: The Real Reason Dangote Abandoned Nigeria's Crude Oil by shortgun(m): 8:30am On Feb 10

Peppysco:

Hmmm, writing so much trash with arrogance and nativity, no surprised anyways, you have your target audience. To make you and your audience understand the jargons you cooked there, I'll ask you this question in a layman's term. Assuming your assertion was true, do you really think sourcing for forex from foreign banks, at high interest rates by Dangote in order to buy from the US is a cheaper or better alternative than buying from the Nigerian government? Not even considering the cost of frieght and other logistics.
Dude, you've only succeeded in confusing more like minded people like you.

Imported cement is cheaper than Nigerian cement, same thing with rice, poultry, fish e.t.c

1 Like

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