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.

Naughtysite:
Shifting of Goal post.

QuotaSystem:


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.

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.

porka:


You still dont understand.

Crude oil is traded in US dollars. The IOCs will sell crude oil to Dangote in dollars. Dangote refinery must present dollars to oil companies to buy crude oil (raw material) to refine. How will there be fall in demand for dollars when a single company must be ready to pay dollars in exchange for 650,000 barrels daily?

Check the report very well, it says Dangote will sell to Nigerians at import price. You are deliberately inputing " where did he say he will sell in USD?" to satisfy your narrative. It doesn't change the well laid down fact that Dangote will buy crude oil in dollars.

Your optimism is not based on science but false assumptions.

Apart from freight cost, which will now be through pipeline and tankers instead of ship and barges, the advantage is not much as you are celebrating. It is always better to be cautious of impact of something you don't have understanding of to avoid disappointment.

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

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.
Quotasystem, read this so as to know that charging international price for locally refined crude is international 419. Also read porka's analyses, he's on point.

If dangote has been getting import waivers, forex concessions and other freebies from govt in the name of building a never ending refinery, then i think getting crude cheaper should be mincemeat for him except he's just up to a greedy game. We all know why our refineries have stopped producing totally is because of dangote's incoming refinery. Do you mean if tables were turned and the refineries start producing, they would sell to the Nigerian market at international prices? even Saudi oil company doesn't sell fuel at international prices in its local market. Be careful what you're defending cause you will also be a part of the receiver.
@grandstar, I daresay dangote has made a profit off Nigeria building the refineries already. Homemade products should be cheaper than imported ones, that's primary school knowledge. Dangote in cohorts with govt is planning a robbery of Nigerians like he did with cement during OBJ's time.

Agboriotejoye:

Quotasystem, read this so as to know that charging international price for locally refined crude is international 419. Also read porka's analyses, he's on point.

gnykelly:

I don't like discussing on NL... But you seems polite.

Wempco was given sole waiver to import cold steel so that it can generate enough capital to build a steel rolling plant in Nigeria...
They were Importing and reselling at a higher price to other companies due to the advantage of being sole importer... In the long run the abandoned the Idea of building the factory
And we're using our forex to make free money... The waiver was cancelled.

WENGERNOMICS:


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

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.
Quotasystem, read this so as to know that charging international price for locally refined crude is international 419. Also read porka's analyses, he's on point.

If dangote has been getting import waivers, forex concessions and other freebies from govt in the name of building a never ending refinery, then i think getting crude cheaper should be mincemeat for him except he's just up to a greedy game. We all know why our refineries have stopped producing totally is because of dangote's incoming refinery. Do you mean if tables were turned and the refineries start producing, they would sell to the Nigerian market at international prices? even Saudi oil company doesn't sell fuel at international prices in its local market. Be careful what you're defending cause you will also be a part of the receiver.
@grandstar, I daresay dangote has made a profit off Nigeria building the refineries already. Homemade products should be cheaper than imported ones, that's primary school knowledge. Dangote in cohorts with govt is planning a robbery of Nigerians like he did with cement during OBJ's time.

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.

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

God bless Dangote.

God bless Nigeria.

DanXplore:


They'd better buckle up or risk extinction

simonlee:
the Nigerian factor has started taking effect gradually!
i wouldn't be surprised if this postponement was deliberate just to allow the "lords of subsidy" loot more before handing it over to Dangote

QuotaSystem:


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.

kelvinUchiha:


You sabi book but look at it from this angle.
Some Government guys like babangida have this same refinery abroad and are buying our crude oil and refining it abroad and selling it back to us and government is paying heavily for the price to still be stable. If we have it in Nigeria the money will be used to do other things for Nigerians even if they buy it at 133. Do you know how much money will remain inside this country and boost our gdp when we start exporting to Ghana and other African countries

obi58:


Very very very foolish analysis.

Go to other oil producing nations like Saudi Arabia and confirm if refineries there procure crude oil at international pricing to refine and sell for domestic consumption.

If we follow your train of thought that we are not dashing out our crude then where is the advantage to the Nigerian people of a domestic refinery?

Why won't a monopoly develop?

Why then will our 4 refineries work even with the continued 'investment' into it?

obi58:


Very very very foolish analysis.

Go to other oil producing nations like Saudi Arabia and confirm if refineries there procure crude oil at international pricing to refine and sell for domestic consumption.

If we follow your train of thought that we are not dashing out our crude then where is the advantage to the Nigerian people of a domestic refinery?

Why won't a monopoly develop?

Why then will our 4 refineries work even with the continued 'investment' into it?

QuotaSystem:
It is almost shocking that despite your appalling lack of manners, you do not know the basic difference between a private refinery (run by IOCs e.g Dangote) and a Gov't owned refinery (run by NOC's e.g Aramco of Saudi & NNPC of Nigeria). The benefits accruing from saved forex also flew over your head.

This discourse is clearly above your paygrade.

Fade.

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.
Quotasystem, read this so as to know that charging international price for locally refined crude is international 419. Also read porka's analyses, he's on point.

If dangote has been getting import waivers, forex concessions and other freebies from govt in the name of building a never ending refinery, then i think getting crude cheaper should be mincemeat for him except he's just up to a greedy game. We all know why our refineries have stopped producing totally is because of dangote's incoming refinery. Do you mean if tables were turned and the refineries start producing, they would sell to the Nigerian market at international prices? even Saudi oil company doesn't sell fuel at international prices in its local market. Be careful what you're defending cause you will also be a part of the receiver.
@grandstar, I daresay dangote has made a profit off Nigeria building the refineries already. Homemade products should be cheaper than imported ones, that's primary school knowledge. Dangote in cohorts with govt is planning a robbery of Nigerians like he did with cement during OBJ's time.


What difference does it make it babangida has a refinery outside and sells at international prices while dangote has his here and sells at the same international price? Dangote may even end up being the better for it since he does not have to worry abt logistics on the high seas. You and quotasystem keep making allusion to money being saved by exporting to African countries but don't realise even Benin does not buy dangote cement and dangote will compete internationally not like the monopoly he's abt to enjoy on the local front.

Naughtysite:
Shifting of Goal post.