When we taught fuel subsidy will end next year. 2021 is just around the corner.

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Can anyone confirm the report that (1) dangote is allowed exchange dollar a price that is not same with the parallel market price which is The Central bank of Nigeria rate,(2) that the same opportunity is not given to other manufacturers.
Please can anyone with a reliable source confirm that?

[s]

post=83636817:
Slow and steady we will get to a New and better Nigeria.God bless Dangote.
God bless Nigeria

[/s]
"Gen.Muhammadu Buhari,the APC presidential candidate has promised to build FOUR new petroleum refineries in Nigeria if elected president during the forthcoming elections taking place later this month..."
http://africanripples.com/buhari-promises-four-new-petroleum-refineries-if-elected-president/

"Nigeria’s former Minister of Petroleum Resources-Ibe Kachikwu,has admitted the failure of President Buhari’s administration to give Nigerians refinery as promised in the run-up to the 2015 presidential election...."
http://saharareporters.com/2019/06/08/buharis-administration-failed-nigerians-not-building-refinery-promised-kachikwu

“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product."

This means people should not have any hope of reduced fuel prices

Agboriotejoye:
I keep saying it. Dangote is the front for the cabal milking Nigeria dry.
Just imagine buying crude at export price and selling at import price to a local market. What then is the point of the dollar breaks CBN have been giving the guy.
In other words, dangote refinery is another euphemism for removal of subsidy



The landing cost of fuel is N133. If he is selling at that amount or close to, then what difference does it make to the Nigerian market. Nigeria is an oil producing nation, so selling for local demand at international price should not arise except there's a plan to exploit the masses.

landing 133 Lie

Dollywood:
Dangote can do better as a president

They're 2 opposite people. One employs workers and the other sacks workers.

Some people here should just go and build their own refinery. I hate blabbers.

Dangote kuku buy nigeria

We ship from china to Nigeria cheaper and faster, we make payment to your 1688 suppliers

QuotaSystem:
A bit disappointing, but not unusual for mega-projects of this magnitude.

This is going to have a huge positive impact on our Naira exchange rate, because the millions of dollars wasted importing fuel daily will be saved, significantly easing dollar demand with the consequent effect on prices.

Aliko Dangote must also be made to repatriate a good part of his forex (earned from exporting refined products) back to the country (as current export guidelines require) as this will further boost our reserves and economic standing.

An exciting development for Nigeria worth looking forward to.

Dangote that is planning to invest 60% of his money in the US and Europe ?

Agboriotejoye:
I keep saying it. Dangote is the front for the cabal milking Nigeria dry.
Just imagine buying crude at export price and selling at import price to a local market. What then is the point of the dollar breaks CBN have been giving the guy.
In other words, dangote refinery is another euphemism for removal of subsidy



The landing cost of fuel is N133. If he is selling at that amount or close to, then what difference does it make to the Nigerian market. Nigeria is an oil producing nation, so selling for local demand at international price should not arise except there's a plan to exploit the masses.

Landing cost is inclusive of the handling, shipping and duties besides the product cost itself, so dangote's refined product price to a greater extent eliminates those cost components....so we are expecting a relatively cheaper price locally safe for forex fluctuation.

WENGERNOMICS:


This project will make Aliko 3 times richer than he currently is. 650,000 barrels a day is not beans.

The profit margins of refineries are not that large.

post=83636817:
Slow and steady we will get to a New and better Nigeria .

God bless Dangote.

God bless Nigeria.

What is d fate of Nigeria's four refineries that buhari said he will fix within two years of coming to office in 2015?

mamaafrik:
Can anyone confirm the report that (1) dangote is allowed exchange dollar a price that is not same with the parallel market price which is The Central bank of Nigeria rate,(2) that the same opportunity is not given to other manufacturers.
Please can anyone with a reliable source confirm that?

deep. Should have been used to buy stakes in the refinery

QuotaSystem:
A bit disappointing, but not unusual for mega-projects of this magnitude.

This is going to have a huge positive impact on our Naira exchange rate, because the millions of dollars wasted importing fuel daily will be saved, significantly easing dollar demand with the consequent effect on prices.

Aliko Dangote must also be made to repatriate a good part of his forex (earned from exporting refined products) back to the country (as current export guidelines require) as this will further boost our reserves and economic standing.

An exciting development for Nigeria worth looking forward to.

You're brilliant sir *doffs hat*

Even if Dangote sells at the market rate, his refinery is creating competition on the market, and therefore, reducing the price globally. The laws of demand and supply tells us that.

Also, the refinery creates jobs for Nigerians, thereby helping improve the Nigerian economy.

Furthermore, we must not forget that Dangote refinery is not wholly owned by him. The govt put up half the money. So any foreign currency earned will be shared with Nigeria. That increases our foreign reserves, which in turn strengthens the Naira. A stronger Naira reduces the cost of imports. So let's say you want to import electronics, it would cost you less. Cheaper imported goods would raise the profile of an average Nigerian, and serve to reduce poverty.

So whether Dangote gives price concession to Nigerians on his refined oil or not, Nigerians still benefit in innumerable ways.

Aliko Dangote, thank you sir for your strength.

Next stop, Dangote should be president of Nigeria, just like Donald Trump runs America like a business currently.

lexy2014:
What is d fate of Nigeria's four refineries that buhari said he will fix within two years of coming to office in 2015?

The zombie will avoid it like plague.

TM

DirtyGold:
Continue posting... by the time it is finally commissioned, maybe more than half his export target destinations would have gone electric.

What's tha business?

Not really

dis man suppose to be our president. .... what is he waiting for??

Agboriotejoye:

The landing cost of fuel is N133. If he is selling at that amount or close to, then what difference does it make to the Nigerian market. Nigeria is an oil producing nation, so selling for local demand at international price should not arise except there's a plan to exploit the masses.

Let us break this down:

Dangote will not sell to Nigeria in Dollars unlike if we were importing refined fuel. That is KEY. Why?

It is because Nigeria will benefit greatly from eliminating a huge daily demand for USD to import fuel. This fall in demand has a direct effect on the exchange rate which will fall as a result of a fall in demand for $. Additionally Dangote will be forced to repatriate some of his USD income from exports, which will also boost our foreign reserves. More USD in the reserves means more USD available to satisfy our daily forex bill and avoid price spikes because the CBN will be better positioned to intervene accordingly.

Now why can't Dangote just sell to us at a reduced price? It is also simple.

For Dangote to survive in the global oil industry, it means he must then be able to compete favorably with other international refineries. That would be impossible if he is subsidizing prices for specific countries, because the costs of input (crude) and processing (refining) are the same or similar to his other competitors across the world. He must therefore sell at global prices, Nigeria not excluded (do not forget he is exporting the excess refined fuel to other countries) so as to remain profitable to his investors and keep him from shutting down after a few months of operation.

Yes we are an oil producing nation, but we are not 'dashing' the crude to Dangote to process for us. He is buying it from us at global prices too, and adding value (refining) at a cost he must recover and make some profit on.

This is rather simplified but hopefully it puts things in clearer perspective.

mamaafrik:
Can anyone confirm the report that (1) dangote is allowed exchange dollar a price that is not same with the parallel market price which is The Central bank of Nigeria rate,(2) that the same opportunity is not given to other manufacturers.
Please can anyone with a reliable source confirm that?

Yes dangote is given exchange rate concession for this project, 2). Some manufacturers were given the chance but abused it so FG withdraw the privileged

Agboriotejoye:
I keep saying it. Dangote is the front for the cabal milking Nigeria dry.
Just imagine buying crude at export price and selling at import price to a local market. What then is the point of the dollar breaks CBN have been giving the guy.
In other words, dangote refinery is another euphemism for removal of subsidy



The landing cost of fuel is N133. If he is selling at that amount or close to, then what difference does it make to the Nigerian market. Nigeria is an oil producing nation, so selling for local demand at international price should not arise except there's a plan to exploit the masses.

He isn't the Red Cross. He's borrowed billions of dollars to build the refinery. No bank will me lend him a cent if he was going to sell the product at the subsidized price.

Nigeria should do the needful and remove the subsidy nd deregulate the price.

Britain, a country of about 65m produces 1.4m barrels of crude oil daily which is about 70% of Nigeria's OPEC quota

Yet, it makes more than Nigeria's budget revenue from fuel taxes. It's 2018 budget 810billion.pounds, which is doubles Nigeria's GDP.. The oil revenue barely constitutes 3% of budget revenue unlike Nigeria that it is 75%.

The sooner the country outgrow oil, the better. The subsidy has to go

QuotaSystem:


How did you conclude on the currency to be used for payment?

Besides what price do you think his major competitors are selling their refined oil?

Don't forget that for him to survive and excel as a global player in the industry, he must remain competitive.

Modified:



Let us break this down:

Dangote will not sell to Nigeria in Dollars unlike if we were importing refined fuel. That is KEY. Why?

It is because Nigeria will benefit greatly from eliminating a huge daily demand for USD to import fuel. This fall in demand has a direct effect on the exchange rate which will fall as a result of a fall in demand for $. Additionally Dangote will be forced to repatriate some of his USD income from exports, which will also boost our foreign reserves. More USD in the reserves means more USD available to satisfy our daily forex bill and avoid price spikes because the CBN will be better positioned to intervene accordingly.

Now why can't Dangote just sell to us at a reduced price? It is also simple.

For Dangote to survive in the global oil industry, it means he must then be able to compete favorably with other international refineries. That would be impossible if he is subsidizing prices for specific countries, because the costs of input (crude) and processing (refining) are the same or similar to his other competitors across the world. He must therefore sell at global prices, Nigeria not excluded (do not forget he is exporting the excess refined fuel to other countries) so as to remain profitable to his investors and keep him from shutting down after a few months of operation.

Yes we are an oil producing nation, but we are not 'dashing' the crude to Dangote to process for us. He is buying it from us at global prices too, and adding value (refining) at a cost he must recover and make some profit on.

This is rather simplified but hopefully it puts things in clearer perspective.

So in essence, for dangote to sell at cheaper price to Nigeria, the government have to sell to him at cheaper price as well?

QuotaSystem:
A bit disappointing, but not unusual for mega-projects of this magnitude.

This is going to have a huge positive impact on our Naira exchange rate, because the millions of dollars wasted importing fuel daily will be saved, significantly easing dollar demand with the consequent effect on prices.

Aliko Dangote must also be made to repatriate a good part of his forex (earned from exporting refined products) back to the country (as current export guidelines require) as this will further boost our reserves and economic standing.

An exciting development for Nigeria worth looking forward to.

The impact on exchange rate is not as significant as you are painting it. You have been told several times that your wishful thinking is a figment of your imagination. This is how you people started jubilating over the 4 refineries that they said are working in full capacity, which are not even producing anything right now.

It is better to base your optimism on fact and not fiction.

Oil is traded in dollars. Dangote will buy crude in dollars. From the report, he will also sell to the local market at import price. Wherein lie the monumental impact on the currency exchange rate?

Perhaps the only advantage you should jubilate over is the reduction/elimination of freight cost.

Dangote said some weeks ago that he would invest 60% of his family wealth in safer jurisdiction (foreign currency) because of the volatility in naira.

lexy2014:


What is d fate of Nigeria's four refineries that buhari said he will fix within two years of coming to office in 2015?

They'd better buckle up or risk extinction

gaetano:
By the year he officially commissions it, all his potential targets would have gone electric

stop this electric nonsense, and be positive for once

pls pls, whatever dangote group is doing let them make sure the drivers that will drive the fuel,kero and diesel truck are responsible and properly trained,just imagine they are transporting cement,sugar,salt and their trucks are causing mayhem on the roads, imagine thousands of dangote trucks carrying fuel and other highly flammable materials,if they don't put their thinking caps on they will simply set the nation ablaze.

DNSPro:
So in essence, for dangote to sell at cheaper price to Nigeria, the government have to sell to him at cheaper price as well?

If he is getting his input (crude oil) at a subsidized rate, then it would be commercially possible for him to sell to us as a cheaper price.

However this makes little economic sense, because we operate on a budget that is prepared with specifed benchmarks for our oil prices and production output. Selling for lower will have unfavorable economic multiplier effects as that means less revenue (and forex) for Nigeria.

Besides it would mean we will be saving Naira (cheaper petrol from dangote) and losing dollars (selling our crude for less) when it should be the other way round.

QuotaSystem:


How did you conclude on the currency to be used for payment?

Besides what price do you think his major competitors are selling their refined oil?

Don't forget that for him to survive and excel as a global player in the industry, he must remain competitive.

Modified:



Let us break this down:

Dangote will not sell to Nigeria in Dollars unlike if we were importing refined fuel. That is KEY. Why?

It is because Nigeria will benefit greatly from eliminating a huge daily demand for USD to import fuel. This fall in demand has a direct effect on the exchange rate which will fall as a result of a fall in demand for $. Additionally Dangote will be forced to repatriate some of his USD income from exports, which will also boost our foreign reserves. More USD in the reserves means more USD available to satisfy our daily forex bill and avoid price spikes because the CBN will be better positioned to intervene accordingly.

Now why can't Dangote just sell to us at a reduced price? It is also simple.

For Dangote to survive in the global oil industry, it means he must then be able to compete favorably with other international refineries. That would be impossible if he is subsidizing prices for specific countries, because the costs of input (crude) and processing (refining) are the same or similar to his other competitors across the world. He must therefore sell at global prices, Nigeria not excluded (do not forget he is exporting the excess refined fuel to other countries) so as to remain profitable to his investors and keep him from shutting down after a few months of operation.

Yes we are an oil producing nation, but we are not 'dashing' the crude to Dangote to process for us. He is buying it from us at global prices too, and adding value (refining) at a cost he must recover and make some profit on.

This is rather simplified but hopefully it puts things in clearer perspective.

How can Dangote be selling petroleum products to the local market at the same price as importers, when he is not running a local operation?? You're not shipping it out to refine, you're buying at a local rate and refining locally, what then should be the excuse for a hike in prices of the end products? Whatever amount he chooses to sell to neighbouring countries is his business, but to the Nigerian market, if Dangote refinery does not drop the price of petroleum products by atleast ₦25-₦50 then the gains are only superficial.

porka:


The impact on exchange rate is not as significant as you are painting it. You have been told several times that your wishful thinking is a figment of your imagination. This is how you people started jubilating over the 4 refineries that they said are working in full capacity, which are not even producing anything right now.

It is better to base your optimism on fact and not fiction.

Oil is traded in dollars. Dangote will buy crude in dollars. From the report, he will also sell to the local market at import price. Wherein lie the monumental impact on the currency exchange rate?

Perhaps the only advantage you should jubilate over is the reduction/elimination of freight cost.

Dangote said some weeks ago that he would invest 60% of his family wealth in safer jurisdiction (foreign currency) because of the volatility in naira.

Where did it say he will sell to Nigeria in USD?

What effect will the consequent fall in demand for USD for importation have?

Therein lies your answer.

gnykelly:


Yes dangote is given exchange rate concession for this project, 2). Some manufacturers were given the chance but abused it so FG withdraw the privileged

hmmmmm,when you mean abuse it,how do you mean please,thanks