Nice one Baba Olowo

SalamRushdie:
I told y'all the refinery wasn't ready and that Buhari just put pressure on this man to do fake Launch so he can claim it as part of his administration challenge...I doubt the refinery can even start working in July , it's takes month to test the distillators and I don't think any of them have even been fired up yet ...Let Buhari and APC keep deceiving themselves

Atiku might be president on friday

Omoh this man don make money for life

CyracksMrBlogger:
it is own by a northerner not a southerner, at least they are more honest and trust worthy. He will be getting the crude here so why sell at N400? Although the Southerners can continue hiking their own fuel price and transportation which is what they love doing. *Wickedness*

Dangote has to pay his debts, pay for maintenance and upgrades, pay local and federal taxes, and also pay staff the kind of salaries that would prevent them from japa.

At the end, he cannot do that by selling PMS at N200 or less.

NNPC is not going to sell him crude at cheap prices.

About the only thing Dangote refinery does is remove the cost of importing fuel.

Ok

FIRDAUS3:
Everything gonna be fine, this smell so nice for Nigerians

how does it smile nice for nigeria where all government refineries are all down only a private refinery will be supplying products to all citizens

Nice one but my question is, what does it mean to ordinary Nigerians like me?

kelvindj98:
This just shows you that proper privatization is the only way to fix this country's economy. Government as usual can't be trusted to run our economy and infrastructure. But if it is properly privatized (not that rubish that Goodluck did where he sold parts of Nepa to his cronies). It will lead to economic boom. I can see more modular refineries being built once Dangote proves this venture can be profitable.

The only way more refineries...modular or otherwise, will come on line is when subsidy goes completely, and fuel is sold at market price.

Otherwise, it would not make economic sense to refine crude oil domestically.

N500 a litre or N250 a litre?

The koko that is.

abhosts:
So why not launch with incoming President when it is ready?

so that it will be credited to pmb

At least now Nigerians see something physical to vent their anger on whenever petrol prices go higher than normal......So Dangote should better be care not to allow this satanic Government use him as a tool to inflict more suffering on Nigerians.

CyracksMrBlogger:
it is own by a northerner not a southerner, at least they are more honest and trust worthy. He will be getting the crude here so why sell at N400? Although the Southerners can continue hiking their own fuel price and transportation which is what they love doing. *Wickedness*

Crap
Is that why Dangote cement is expensive

Nazgul:
From the hundreds of thousands of barrels of PMS that would be refined per day in this refinery, are we still going to be purchasing PMS for over N700 if subsidy is eventually removed?

Cos subsidy (according to the government) is the fee paid to independent marketers to reduce the price of refined petroleum products for consumers (Nigerians), since Dangote would be operating from Nigeria is it safe to say that we're going to experience a reduction in the price of fuel since subsidy would no longer be paid?

Would the refinery have a direct impact in the prices of fuel and Diesel?

Would it cushion the effect of the fuel subsidy removal on we the masses?

Crude oil will be sold to dangote at international price. The price difference won't be that much

AntiChristian:
At least no more foreign petrol trips to refine and import!

God Bless Nigeria!

This refinery is not ready for ooetaarion .... Go and write it down .... Work will go on well beyond July....... I was already calculating the savings in foreign exchange and this man just turn am to salt for my mouth

patriotic007:
At least now Nigerians see something physical to vent their anger on whenever petrol prices go higher than normal......So Dangote should better be care not to allow this satanic Government use him as a tool to inflict more suffering on Nigerians.

Oga, if you were a businessman, would you sell your product at half the cost it took to make it to help poor people.?

Dangote has to pay debt, suppliers, his workers , and he has to pay for the crude.

All that costs money....and all that would be reflected in the price of petrol.

Subsidising fuel for 50 years... is why we don't have working refineries.(though NNPC is now repairing all of them).

nairalanda1:


Dangote has to pay his debts, pay for maintenance and upgrades, pay local and federal taxes, and also pay staff the kind of salaries that would prevent them from japa.

At the end, he cannot do that by selling PMS at N200 or less.

NNPC is not going to sell him crude at cheap prices.

About the only thing Dangote refinery does is remove the cost of importing fuel.

The cost of importing fuel is the major reason fuel is expensive hence the subsidy payment.....so I was told sha o

Nazgul:
From the hundreds of thousands of barrels of PMS that would be refined per day in this refinery, are we still going to be purchasing PMS for over N700 if subsidy is eventually removed?

Cos subsidy (according to the government) is the fee paid to independent marketers to reduce the price of refined petroleum products for consumers (Nigerians), since Dangote would be operating from Nigeria is it safe to say that we're going to experience a reduction in the price of fuel since subsidy would no longer be paid?

Would the refinery have a direct impact in the prices of fuel and Diesel?

Would it cushion the effect of the fuel subsidy removal on we the masses?

Subsidy is what government pays to keep the price of fuel low. It covers transport of fuel, the cost of producing fuel, and so forth.

The only thing that we would not be paying for is the import cost of fuel. Otherwise, the cost of refining fuel, the cost of transporting that fuel to end users...plus the debt Dangote incurred in building the refinery...we still have to pay for that.

And no, having government subsidise fuel again means that government would waste money...because all the costs I have mentioned do not remain static. They rise and rise.

Things sadly cost money.

HacheNoire:


Was Dangote the only one issued a license to build a refinery?

Please give kudos when due! Some have even sold the licenses to 3rd party’s.

I will not give kudos to dangote,he can't thrive in a level business playground, na monopolist. ..lastly,make we dey depend on one man now lol, I laf

Dangote get luck sha, I just dey imagine where INNOSON for dey now assuming na northerner.

nairalanda1:


Oga, if you were a businessman, would you sell your product at half the cost it took to make it to help poor people.?

Dangote has to pay debt, suppliers, his workers , and he has to pay for the crude.

All that costs money....and all that would be reflected in the price of petrol.

Subsidising fuel for 50 years... is why we don't have working refineries.(though NNPC is now repairing all of them).

I was told crude oil is not the reason fuel is expensive that it's the cost of transporting it into Nigeria that makes it expensive......No matter don dey use style change oh ......If fuel will be more expensive with domestic refinaries then I guess Nigerian government where right all this while for not having a working refinary in the country and opting to import fuel instead...... Anyway what do I know

HacheNoire:


It’s 2023! Quit wailing!

nothing concern me, don't hide from d truth

patriotic007:
The cost of importing fuel is the major reason fuel is expensive hence the subsidy payment.....so I was told sha o

No, it also covers transport within the country, and the cost of refining the fuel (which government tried to keep low by refining our crude in substandard refineries abroad. Many other African countries did the same).

Dangote has to pay his debts, pay for maintenance, pay for refining costs, and pay workers good and high salaries. All that adds up. Then there are transport costs which are separate.

id4sho:

Crude oil will be sold to dangote at international price. The price difference won't be that much

But there won't be need for importation fee, vessel demurrage fee, security fee, vessel charter fee...etc. Which independent marketers usually use to hold the government on their blokos, hence the subsidy payment, the crude would be refined right here in Nigeria and distributed to consumers.

This means that there should be a visible reduction in the prices of refined petroleum products.

SalamRushdie:
I told y'all the refinery wasn't ready and that Buhari just put pressure on this man to do fake Launch so he can claim it as part of his administration challenge...I doubt the refinery can even start working in July , it's takes month to test the distillators and I don't think any of them have even been fired up yet ...Let Buhari and APC keep deceiving themselves

I said similar thing that isn't going to work for the next few months but some people here think that we hate development. I have lived long in Nigeria to understand how things work and to predict governance.

denzel231:
nothing concern me, don't hide from d truth

What truth?

And what does the supposed truth change? NOTHING!

I wanna be like you sir! You're too much! Congratulations to you!

garfield1:


Atiku might be president on friday

He won't , we don't deceive ourselves here

nairalanda1:


No, it also covers transport within the country, and the cost of refining the fuel (which government tried to keep low by refining our crude in substandard refineries abroad. Many other African countries did the same).

Dangote has to pay his debts, pay for maintenance, pay for refining costs, and pay workers good and high salaries. All that adds up. Then there are transport costs which are separate.

Are you saying we will buy fuel more expensive now that Dangote has a domestic refinary?

Who knows how much fuel price will be then ?

patriotic007:
I was told crude oil is not the reason fuel is expensive that it's the cost of transporting it into Nigeria that makes it expensive......No matter don dey use style change oh ......If fuel will be more expensive with domestic refinaries then I guess Nigerian government where right all this while for not having a working refinary in the country and opting to import fuel instead...... Anyway what do I know

Crude is expensive. Especially when prices rise.

Also, refining it into varied products is expensive as well. Espeically since it also produces waste as a byproduct...which impacts on costs.

Finally, we have no working refineries (although I was reliably informed that NNPC is repairing all its refineries)...because subsidy means that refineries do not make enough of a profit to work sustainably.

It's like you are baking bread at N1000 a loaf, and selling it at N1500 a loaf, but then government comes in and tells you to sell that bread at N500 a loaf and pays you a subsidy of N500 per loaf sold....which works until your production costs go up to N1500 a loaf, which means you have to sell at least at N1600 a loaf to recoup costs...but government still insitits you sell at N500, and still pays you N500 to cover a N1000 loss.

The above is what we have been doing to our refineries.

Cassandraloius:
I wanna be like you sir! You're too much! Congratulations to you!

He doesn’t waste his time on nairaland

Kokadomfreedom:
Why not wait till when ready before commissioning?

Trust me Buhari put pressure on him