Will other players in the down stream sector who own modular refineries enjoy same from the government? Dangote is in to make huge profit margins..

Dangote could never have succeeded in business in an advanced society as he is in Nigeria. How a country works solely for an individual beats my imagination.

That Emefiele is a crook. You see what we have been talking about. The crude oil is often priced in dollars right? So the Nigerian govts plan is to subsidize dangote's business. They will sell him crude oil at their pegged unrealistic 335 Naira exchange rate. Most of the refined product will now be sold for its real value at the international market in dollars and consequently also to Nigerians at its dollar equivalent. And that my friends is how they intend to siphon the crude oil wealth to one person ie Dangote

9jaRealist:


If that is the case, then it’s even BETTER for those other refiners...
They can simply sell their own products cheaper and cannibalize Dangote’s market share.
>

and the commoner suffer as usual, I saw your comment about how dangote and bua help us stop importing cement. seriously your dangote and bua should have just leave us to keep importing our cement because way back before they venture into it, average Nigerian DA afford it without stress but after they venture into it, what happen?


it occur to me that the idea of producing our own goods in Nigerian is not because they want the citizens to buy at cheaper rate but it because they want to keep extorting the average Nigerian and then enriching the elite.


Shame on Nigeria.

Ferdinandu:

Did Dangote cement become a game changer. We are buying cement at ridiculous high price now but they said we are now self sufficient in cement production. Dangote monopoly may not even be better than Government run companies in the long run in terms of it's effect on ordinary Nigerians

Don't mind them. they should tell us one thing dangote venture into and it doesn't skyrocket. even the salt he's producing.

cugardmalino:
Nigeria has 5 not working refinaries and nobody is saying anything. We all are waiting for that one 1 man. Open your eyes and see that this country will soon be on motgage to Dangote. Also no forget say the 5 not working eats a whopping N10b monthly for maintenance. Na Dangote go soon buy all the 5 of them for N100. E no go better for our leaders

We have been complaining for decades about our moribund refineries but Nigerians have clearly accepted that the FG has proven since OBJ that it is too greedy, selfish, incompetent and dishonest to profitably operate refineries.

It was in this country that Diezani as Petroleum minister preferred to waste billions of USD on shady, fraudulent "oil swap" deals with her cronies like Kola Aluko, instead of concentrating on revamping our refineries with the excess money we were getting from high oil prices under Jonathan. Those archaic refineries should be corporately dissolved, dismantled and the metal sold for scrap.

Igboarecriminal:
Fantastic news indeed. There will be no need for forex conversion any longer. Now he can export to other African countries and bring in the forex.
That is in addition to the savings to be made from discontinuance of fuel importation. Fuel import was the number 1 forex guzzler.

Watch how IPOB terrorist and some brown roof republic will Insult Dangote because he is muslim from North. They will tell us how lamidi cownu loaned money to Dangote's ancestors.

Don't worry electric cars and trucks are taking over the world in 8 years time. Refinery owners in Europe and Asia are selling off their refinery, cos they know fuel is about to end soon.

But Aboki cow brain will always be Aboki cow brain is now thinking of building refinery when the whole world is switching off from it. He could have done this 15 years ago and cash out by now.

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangotes petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved) : further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

Deceitfulness to those who choose to remain gullible..

It's just a matter of time and Russia will rise.

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Especially if you can get new cryptocurrency coins for free without spending a dime then HOLD for the value to explode in the future.

GoodDollar coins launched in September last year has more than doubled in value and it has much more growth potential.

The best part is you don't have to spend any money to acquire it for now. You can check my signature to claim free 50G$

chatinent:


The plan is to sell to themselves at cheap rates so they can resell to us, and export at a good rate.


The name Dangote is a haven for all political fraud.


They make up Dangote. Dangote is just a name.

Just like Ali baba and his 40 thiefs.

Thelife:


and the commoner suffer as usual, I saw your comment about how dangote and bua help us stop importing cement. seriously your dangote and bua should have just leave us to keep importing our cement because way back before they venture into it, average Nigerian DA afford it without stress but after they venture into it, what happen?


it occur to me that the idea of producing our own goods in Nigerian is not because they want the citizens to buy at cheaper rate but it because they want to keep extorting the average Nigerian and then enriching the elite.


Shame on Nigeria.

If you still had to import cement at todays exchange rates, Nigerians would start building with stones and wood.

Cement prices, since we would be importing, would then truly skyrocket to at least x3 of todays prices. Not just the cost of the foreign product, but also the logistics involved priced in USD. In todays global economy, the producer is king.

cugardmalino:
Nigeria has 5 not working refinaries and nobody is saying anything. We all are waiting for that one 1 man. Open your eyes and see that this country will soon be on motgage to Dangote. Also no forget say the 5 not working eats a whopping N10b monthly for maintenance. Na Dangote go soon buy all the 5 of them for N100. E no go better for our leaders

What is Dangote’s business that the Nigerian government is too incompetent to operate its own refineries - despite spending billions in Turn Around Maintenance contracts and employing thousands of workers, while producing little or no products? What is Dangote’s business that the government-owned refineries, while maintaining a MONOPOLY grip of the Nigerian market (since there were no other producers) still LOST N154 billion in their last audited financial year statement released in 2019? What is Dangote’s business that whenever the subject of privatizing those loss-guzzling refineries is broached, many Nigerians ignorantly rush to the streets in protest (despite the ineptitude of those refineries actually costing ordinary Nigerians real money in the firm of higher fuel and transportation prices, and increased inflation therefrom)? And what is Dangote’s business that at least 28 other applicants were granted private refinery licenses, going all the way back to the Obasanjo administration, before he secured his own license (under the Jonathan administration) and yet no one else seem to able to do what he is doing (of course, except for the BUA Group that is also building a big refinery in Akwa Ibom State).

Anyway, many Nigerians seem to venerate failure (the government refineries) while denigrating success. That’s why Nigeria is going backwards!
>

Godarz:


As regards cement, other complanies got the same favour as Dangote. Lafarge, Ibeto, Bua et al.

Plus a working refinery in Nigeria means less money and scarce dollars spent on importing the refined stuff like petrol

Also the reason why there aren't more refineries added to the ten or more refineries under construction is that you Nigerians want government to keep on controlling the price of fuel which means anyone setting up a refinery will end up running it at a loss. That's the main reason why NNPC refineries are down.

Smile, other complain get the same Favour as dangote? are you for real, please just stop lieing.

1. is tax system, after dangote venture into cement industry, the government increase the tax knowing fully well that they are the one that make up dangote and the money he paid as tax is still going back to him, then the tax frustrated the other cement industry and they have no chose than to increase there selling price to meet up.


2. did you know that it only dangote trucks that permitted to carry weight load that's greater than the required maximum weight load specify in Nigeria law?


3. when the border was closed, show us which of those industry was given the grace of importation apart from dangote


seem you people sees us as fool.

Emary:
So the plan is to sell this man our crude at cheap rates, only for him to resell the refined products to us at even higher rates than importers currently do? Real monopoly. Well, at least after this, we should hear no more about subsidy.

leave these people time will tell, let them use the masses oil money to setup refinary for themselves , we are watching what goes up must surely comes down.is it not the same with cement? Did the cement come down the same cement is not affordable to Nigerians.

9jaRealist:


What is Dangote’s business that the Nigerian government is too incompetent to operate its own refineries - despite spending billions in Turn Around Maintenance contracts and employing thousands of workers, while producing little or no products? What is Dangote’s business that the government-owned refineries, while maintaining a MONOPOLY grip of the Nigerian market (since there were no other producers) still LOST N154 billion in their last audited financial year statement released in 2019? What is Dangote’s business that whenever the subject of privatizing those loss-guzzling refineries is broached, many Nigerians ignorantly rush to the streets in protest (despite the ineptitude of those refineries actually costing ordinary Nigerians real money in the firm of higher fuel and transportation prices, and increased inflation therefrom)? And what is Dangote’s business that at least 28 other applicants were granted private refinery licenses, going all the way back to the Obasanjo administration, before he secured his own license (under the Jonathan administration) and yet no one else seem to able to do what he is doing (of course, except for the BUA Group that is also building a big refinery in Akwa Ibom State).

Anyway, many Nigerians seem to venerate failure (the government refineries) while denigrating success. That’s why Nigeria is going backwards!
>

common show us any of those 28 license private refineries that your government is selling crude oil to in naira? just one.

Before nko? They want tobtransact in foreign currency on our soil?

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

Stop talking like a quota system mind. Forex is just the part of national wealth maintained in foreign currencies to facilitate business with other economies. Forex cannot be saved in that sense but channelled to other things.

chatinent:


The plan is to sell to themselves at cheap rates so they can resell to us, and export at a good rate.


The name Dangote is a haven for all political fraud.


They make up Dangote. Dangote is just a name.

Thanks to you, you share my observation, did cement come down? How many Nigerians can afford the dangote cement? While it's even cheaper in ghana.

QuotaSystem:


If you still had to import cement at todays exchange rates, Nigerians would start building with stones and wood.

Cement prices, since we would be importing then, would then truly skyrocket to at least x3 of todays prices. In todays global economy, the producer is king.

Smile, did you know that your dangote have skyrocket the price just as he started producing and that time the exchange rate is very okay then but your government makes the imported price hard to afford by increasing the import tax duty on it. it just a normal logic.


1. your government increase the import tax duty so the price of imported cement raise from 500-1200.

2. Dangote start operating it own cement industry and start selling at 1100, and making people believe that he's helping them, smile. we all know the game bro.


all I will just say is that we should not expect any change in fuel price just because dangote venture into it. I won't be surprise if he start selling is petrol at the rate of 170 per liter while the imported once will be with 10 naira difference.

TheWrita:
I don't understand the headline and I'm not going to read the rest of this story to avoid being irritated this Sunday morning
FG is planning to do what?sell oil?
Isn't dangote refinery ...drilling for oil?
I'm sure some people are already rushing the comment section to defend and explain rubbish.
You guys are too dumb to understand that the country you THINK you are a citizen of ..actually belongs to a few old men.
They are just sharing things among themselves.
Sad!

Exploration companies (Upstream) drill for crude oil.

Refining companies (Downstream) e.g Dangote, BUA, Walter Smith process (refine) the crude oil to get its derivatives e.g kerosene, diesel, lubricants etc.

Dangote's refinery has nothing to do with exploration or drilling for oil as it would be buying from the FG in Naira. That's the headline.

The great irony is that you were in a hurry to label others as dumb.

Thelife:
and the commoner suffer as usual, I saw your comment about how dangote and bua help us stop importing cement. seriously your dangote and bua should have just leave us to keep importing our cement because way back before they venture into it, average Nigerian DA afford it without stress but after they venture into it, what happen?

it occur to me that the idea of producing our own goods in Nigerian is not because they want the citizens to buy at cheaper rate but it because they want to keep extorting the average Nigerian and then enriching the elite.

Shame on Nigeria.

LaFarge is a foreign company. In fact, it is the world’s BIGGEST producer of cement. How much does LaFarge sell its cement in Nigeria? Is it cheaper than Dangote or BUA cement? If you think that imported cement will still cost Nigerians the same as it cost when the Naira was N118 or N168 to the US Dollar (let’s not even go as far back to our parents time, when the N1 was almost $2), when the Naira is now officially N410 to the US Dollar (and unofficially about N500/$1), then I am afraid you are being more than a tad delusional - and that’s even before you add shipping costs (including the high insurance rates because of the piracy-infested Gulf of Guinea shipping lanes).

Most important, though, is that the local production of cement in Nigeria by Dangote and BUA creates TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS (direct and indirect) along the entire value chain, thereby creating wealth locally in the Nigerian economy and generating tax revenues (both corporate and income taxes) for Nigerian federal and state governments, which revenue should ideally (if the politicians are not stealing or embezzling it) be invested in public infrastructure, schools, hospitals and transportation, among other things. Meanwhile, guess who gets the majority of those JOBS being created in the local economy - commoners!
>

9jaRealist:


LaFarge is a foreign company. In fact, it is the world’s BIGGEST producer of cement. How much does LaFarge sell its cement in Nigeria? Is it cheaper than Dangote or BUA cement? If you think that imported cement will still cost Nigerians the same as it cost when the Naira was N118 or N168 to the US Dollar (let’s not even go as far back to our parents time, when the N1 was almost $2), when the Naira is now officially N410 to the US Dollar (and unofficially about N500/$1), then I am afraid you are being more than a tad delusional - and that’s even before you add shipping costs (including the high insurance rates because of the piracy-infested Gulf of Guinea shipping lanes).

Most important, though, is that the local production of cement in Nigeria by Dangote and BUA creates TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS (direct and indirect) along the entire value chain, thereby creating wealth locally in the Nigerian economy and generating tax revenues (both corporate and income taxes) for Nigerian federal and state governments, which revenue should ideally (if the politicians are not stealing or embezzling it) be invested in public infrastructure, schools, hospitals and transportation, among other things. Meanwhile, guess who gets the majority of those JOBS being created in the local economy - commoners!
>

There's hardly anything logical about the arguments of those opposed to Dangote's refinery.

Just petty, naked sentiments.

Igboarecriminal:
IPOB terrorist with monkey brain.
this is the bottom of the bottle saying swim or sink. We're talking about Africa, where in some places there's still no Cars or road, talkless of electric car. You people watch too much CNN and hollywood movies.

thanks for helping me replying the dude he don't know anything

Why must everything be dangote. Nigeria is cursed forever

seunmsg:


You and the guy you quoted are very slow. Will Dangote sell to Nigerians in Naira or dollars? What’s the point selling crude to Dangote in dollar when he will be selling to Nigerians in Naira? How do we conserve scarce foreign exchange and improve the position of the naira if NNPC is to sell to him in dollars?

It is also important you guys know that selling crude to Dangote refinery in Naira doesn’t mean selling to him cheap. He will buy at the naira equivalent of the price of crude oil at international market.

You believe in the news a lot.


I am telling you a true life story.

Igboarecriminal:
IPOB terrorist with monkey brain.
this is the bottom of the bottle saying swim or sink. We're talking about Africa, where in some places there's still no Cars or road, talkless of electric car. You people watch too much CNN and hollywood movies.

Because Dangote is the one who controls manufacturing of cars in US Europe and Asia Abi?

eseago:
Thanks to you, you share my observation, did cement come down? How many Nigerians can afford the dangote cement? While it's even cheaper in ghana.

Don't mind them.

9jaRealist:

What is Dangote’s business that the Nigerian government is too incompetent to operate its own refineries - despite spending billions in Turn Around Maintenance contracts and employing thousands of workers, while producing little or no products? What is Dangote’s business that the government-owned refineries, while maintaining a MONOPOLY grip of the Nigerian market (since there were no other producers) still LOST N154 billion in their last audited financial year statement released in 2019? What is Dangote’s business that whenever the subject of privatizing those loss-guzzling refineries is broached, many Nigerians ignorantly rush to the streets in protest (despite the ineptitude of those refineries actually costing ordinary Nigerians real money in the firm of higher fuel and transportation prices, and increased inflation therefrom)? And what is Dangote’s business that at least 28 other applicants were granted private refinery licenses, going all the way back to the Obasanjo administration, before he secured his own license (under the Jonathan administration) and yet no one else seem to able to do what he is doing (of course, except for the BUA Group that is also building a big refinery in Akwa Ibom State).

Anyway, many Nigerians seem to venerate failure (the government refineries) while denigrating success. That’s why Nigeria is going backwards!
>

Thelife:
common show us any of those 28 license private refineries that your government is selling crude oil to in naira? just one.

What was it about the highlighted part of my post was too difficult to understand?

Of course if all those other licenses were able to build their own refinery projects, Nigeria probably would not be currently importing fuel (and perhaps the Dangote refinery may even have not been necessary). Nonetheless, each of the Waltersmith Refinery in Imo State, the Edo Modular Refinery, and the Orient Refinery, would each buy their crude oil supplies in Naira.
>

alexola20:
And when you get your share and exchange it to USD,€ or
£,you will realised you have really been shortchanged.

All of my life as a Nigerian I have never seen any positive change. I will manage the short change, No worries

When Is FG Selling The Gold In Zamfara And Other Northern States To Benefit Everyone Of Us?