Rugaria:


It's very obvious, but when you complain about this man's uncanny brand of vicious monopoly/capitalism, folks make it look like you are just hating..
From flour, to grains and cement, he has managed to sponsor presidents who helped him push off his competitors. He will then monopolize the sector, fix prices as he feels and disappear into one of his mansions while ordinary people suffer.. Cement prices in Nigeria are higher than that of other countries where Dangote has cement plants! Yet he has licences for limestone here in Nigeria! The man is a daredevil capitalist who believes strongly in manipulatig the system to squeeze the last breadth out of the poor masses.. To think that he is even being used as the top example of successful entrepreneurs, that the young in this country should look up to is simply mind boggling..

Dangote is suggesting only those with active refineries be granted licences to import fuel when the demand is greater than the supply. This as a means of encouraging others to establish refineries locally. How will this be trying to monopolize fuel? ... when it will bring competition and growth in the local refinery market? .... back up your statement ... how is this trying to monopolize the industry?
What is the price of his cement in Nigeria?.....and what is the price in other countries where he has plant?
When we make statements we should be able to back them up.

thebosstrevor1:


So you mean they are not good entrepreneurs

His suggestion is to regulate the industry.

No igbo or your man that owns a refinery will reject this idea.

we have been fighting to deregulate the industry like it's done in all market economies

Rugaria:


It's very obvious, but when you complain about this man's uncanny brand of vicious monopoly/capitalism, folks make it look like you are just hating..
From flour, to grains and cement, he has managed to sponsor presidents who helped him push off his competitors. He will then monopolize the sector, fix prices as he feels and disappear into one of his mansions while ordinary people suffer.. Cement prices in Nigeria are higher than that of other countries where Dangote has cement plants! Yet he has licences for limestone here in Nigeria! The man is a daredevil capitalist who believes strongly in manipulatig the system to squeeze the last breadth out of the poor masses.. To think that he is even being used as the top example of successful entrepreneurs, that the young in this country should look up to is simply mind boggling..

Hmmm...!

Fixey:





Hahahahahahahahaha. Legit question



Would all refineries undergo turnaround maintenance at the same time?

Is his refinery not the only one we have?

Suddenly, he cares about the health of Nigerians when it suits his pocket. Baba don turn the Nigerian market to his generational own via his monopolistic agenda.

Originalsly:


Dangote is suggesting only those with active refineries be granted licences to import fuel when the demand is greater than the supply. This as a means of encouraging others to establish refineries locally. How will this be trying to monopolize fuel? ... when it will bring competition and growth in the local refinery market? .... back up your statement ... how is this trying to monopolize the industry?
What is the price of his cement in Nigeria?.....and what is the price in other countries where he has plant?
When we make statements we should be able to back them up.

Well said. I have researched online price of cement where Dangote has cement plant. Prices are comparable to Nigeria. In some cases a bit cheaper and in some cases a bit more expensive.

ShobayoEmma:
Trying to put up his monopolistic agenda in motion in petrochemical sector too. But note this, before the North will use you to indirectly front their economy diversionary to the North; the South would have by far become a separate country where there will be equity, Justice and peace.

Dangote wasn't the first to be given license to build refinery. The license was given to otedola but instead of building a refinery he decided to import fuel and made made billions from subsidies by importation...Dangote decided to do the needful and you guys are just talking nonsense.

COMPAQ:


Is his refinery not the only one we have?

So many are undergoing construction at the same time. Few others have licenses but have not started building.

loswhite:
Dangote wasn't the first to be given license to build refinery. The license was given to otedola but instead of building a refinery he decided to import fuel and made made billions from subsidies by importation...Dangote decided to do the needful and you guys are just talking nonsense.

He's not helping anyone. After securing licenses to build a refinery which is hectic, then fresh beuaucracries threaten full scale development although many whose sought licenses naturally bent towards importation. It doesn't mean he should swallow up the whole oil industry

Godarz:


Danmgote has two factories in South Africa....plus

1,South Africa has better electricity supply than Nigeria....cost from running generator gone

2.South Africa has a good railway system....cost of transport gone down

3.South Africa has a good road system...cost of transport gone down

4.South Africa can afford a good road and railway system because they diversify their economy, plus they also charge higher taxes...their tax to gdp ratio is 23% Nigeria is 6.1%, plus there is a toll on some south African roads (attempts to reintroduce tolls in Nigeria led to growling and protesting)..plus electric companies in SA charge cost reflective tarrifs, and don't have people and government agencies refusing to pay their power bills either

Dangote makes a 60% profit margin in Nigeria compared to 20% in other African country. Stop typing rubbish you dumb monkey.

See price of 40kg bag if cement for Yankee o

COMPAQ:


Well said. I have researched online price of cement where Dangote has cement plant. Prices are comparable to Nigeria. In some cases a bit cheaper and in some cases a bit more expensive.

Not generic pricing. Quality and grade applies to cement. Nigerians pay higher for cement than it is in the international market

COMPAQ:
See price of 40kg bag if cement for Yankee o

Okay
But is it the same 2x grade?

COMPAQ:


I totally agree with you. Cheap everything. I always argue that the issue with Nigeria is not that things are expensive, its an issue of incomes are low. The income side of the equation is what should be addressed. Rent, petrol, food, transport , taxes etc are much less in Nigeria than abroad.

3 bedroom bungalow in Houston is like $1500 a month (N570k per month or N6.8mln per year) in very normal area o - equivalent of Yaba.

Cement costs 3 times more in Nigeria compared to the U.S. as do cars, electricity, etc. You are a foolish little monkey.

Fixey:



So many are undergoing construction at the same time. Few others have licenses but have not started building.

Only BUA is showing any serious sign of building a full scale refinery. No one else. It has not even started any construction.

COMPAQ:


Only BUA is showing any serious sign of building a full scale refinery. No one else.

.. Hahaha. So you think. That's what the media wants you to believe. There are other macro refineries in the pipeline and lots of modular refineries. Do your research. For mega refineries there are over 20 licenses and much more for modular refinieries

Aconomist:
Cement costs 3 times more in Nigeria compared to the U.S. as do cars, electricity, etc. You are a foolish little monkey.

Look up. I just posted cement price from Home depot 3 posts up. Put your own evidence of cement one third the price in US.

Article: Dangote is not your friend

For some people, the production of cement within the shores of Nigeria is a thing of pride. They point out to a Nigerian producing for Nigerians as the highest form of patriotism. But policies should not be judged by the ‘feel good’ factor, rather they should be measured by their impact on the people.

It would be recalled that the Nigerian Government in its attempt to boost local production placed a ban on importation of cement in 2001. President Obasanjo seeing that the objectives were not being met lifted the ban in 2007, only for the ban to be placed back again. Give or take, we have had 18 years to evaluate the impact of the ban. The overwhelming consensus is that Nigerians pay among the highest prices for cement in the world. A quick search on Konga shows a 50kg bag of cement costs $7, while a 2016 World Bank report (Page 61) on competition in Africa reveals that the average global cement price is around $3.4. Almost two decades after, Nigerians pay double the global prices for the price of cement.

I hear you retort that it’s the tough business environment that has made things, cement inclusive. And that would be true if the profit margin is not exorbitant. In 2017, a Bloomberg Intelligence report showed that the average global profit margin for cement companies was 17%. For Dangote Group, the profit margin was 42%. That’s more than twice. I just checked the result for 2018 and the profit margin has shot up to 64% .
If conditions are difficult, then the profit margin should shrink, not explode. It goes without saying that it’s Nigerians who are paying through their nose when they could easily get the product for much lesser.

This World Bank report, on Page 64, shows that Dangote has been granted exclusivity to materials, including limestone used to produce cement.
Nigerians don’t understand that when they mention cement production in the country as a pointer to why banning things is good, they are indirectly encouraging a system of exploitation.

Every single time a Nigerian business man tells you Nigeria should ban importation of something without calling out the problems which necessitates importation of that product in the first place, know that they are thinking of enriching themselves at your expense.

https://thowsyne.medium.com/dangote-is-not-your-friend-b0b9303ae662

Fixey:


.. Hahaha. So you think. That's what the media wants you to believe. There are other macro refineries in the pipeline and lots of modular refineries. Do your research. For mega refineries there are over 20 licenses and much more for modular refinieries

Guy na licence we want chop? Haven't we always given license? Did any get built? Really!!!

Modular is good, but can't solve our demand anytime soon. Dangotw can refine 600k barrels. Walter Smith is refining 5k barrels.

So that he can manipulate the oil sector too.

Government were supsed to empower those local refineries in Niger Delta, that same local refineries the government tagged illegal refineries . Only Dangote can't do the refining job alone expect if they just want to suffer the masses by channeling the separation techniques to Dangote refinery .

Talking of refinery license, Dangote knows that what he is saying will favour him , tho I don't know if there's another body refinering oil in Nigeria.

Fixey:



Okay
But is it the same 2x grade?

So you think Yankee has lower standards Nigeria? Not likely.

COMPAQ:


Guy na licence we want chop? Haven't we always given license? Did any get built? Really!!!

Modular is good, but can't solve our demand anytime soon. Dangotw can refine 600k barrels. Walter Smith is refining 5k barrels.

Dude, Dangote started from license just like the others. Your comment says alot about your awareness. Do your digging. Other refineries are in the pipelines. There's a Yoruba billionaire too in the mix with around 450,009 barrels a day capacity, BUA with 250,000 barrels a day and much more

. If you don't throw your nets wide, stop commenting like you know much

COMPAQ:


So you think Yankee has lower standards Nigeria? Not likely.

Then why quote pricing for cements without putting it against the grade of the cement

Dude, do your research well. Nigeria overlays for cement

Fixey:



He's not helping anyone. After securing licenses to build a refinery which is hectic, then fresh beuaucracries threaten full scale development although many whose sought licenses naturally bent towards importation. It doesn't mean he should swallow up the whole oil industry

Why do they bend towards importation? How did the importation benefits you as a Nigerian? Nigerian citizens deserve the leaders they get....smh

This is a good proposal that can increase production of local refinery. The con to this is that there is no major step by local stakeholders to build refineries that can cushion the effect of underproduction should dangote be experiencing a downtime. Hence dangote still remains a monopoly. The resultant effect is that independent oil marketers will be excluded from importation and shortage of refined product at high cost.

loswhite:
Why do they bend towards importation? How did the importation benefits you as a Nigerian? Nigerian citizens deserve the leaders they get....smh

Stop saying things you don't know dude


There are so many reasons. One of which is their greed get quick dollars and then import, it's not so with all at the same time. Use your brain.

Aconomist:
Article: Dangote is not your friend

For some people, the production of cement within the shores of Nigeria is a thing of pride. They point out to a Nigerian producing for Nigerians as the highest form of patriotism. But policies should not be judged by the ‘feel good’ factor, rather they should be measured by their impact on the people.

It would be recalled that the Nigerian Government in its attempt to boost local production placed a ban on importation of cement in 2001. President Obasanjo seeing that the objectives were not being met lifted the ban in 2007, only for the ban to be placed back again. Give or take, we have had 18 years to evaluate the impact of the ban. The overwhelming consensus is that Nigerians pay among the highest prices for cement in the world. A quick search on Konga shows a 50kg bag of cement costs $7, while a 2016 World Bank report (Page 61) on competition in Africa reveals that the average global cement price is around $3.4. Almost two decades after, Nigerians pay double the global prices for the price of cement.

I hear you retort that it’s the tough business environment that has made things, cement inclusive. And that would be true if the profit margin is not exorbitant. In 2017, a Bloomberg Intelligence report showed that the average global profit margin for cement companies was 17%. For Dangote Group, the profit margin was 42%. That’s more than twice. I just checked the result for 2018 and the profit margin has shot up to 64% .
If conditions are difficult, then the profit margin should shrink, not explode. It goes without saying that it’s Nigerians who are paying through their nose when they could easily get the product for much lesser.

This World Bank report, on Page 64, shows that Dangote has been granted exclusivity to materials, including limestone used to produce cement.
Nigerians don’t understand that when they mention cement production in the country as a pointer to why banning things is good, they are indirectly encouraging a system of exploitation.

Every single time a Nigerian business man tells you Nigeria should ban importation of something without calling out the problems which necessitates importation of that product in the first place, know that they are thinking of enriching themselves at your expense.

https://thowsyne.medium.com/dangote-is-not-your-friend-b0b9303ae662

Not sure where you $3 cement comes from o! Also note that 80lb is about 36kg

Dharmiejoe:
This is a good proposal that can increase production of local refinery. The con to this is that there is no major step by local stakeholders to build refineries that can cushion the effect of underproduction should dangote be experiencing a downtime. Hence dangote is remains a monopoly. The resultant effect is that independent oil marketers will be excluded from importation and shortage of refined product at high cost.

In that case the NNPC should reserve the right to solely import during emergencies

This Man is too Greedy and Corrupt but some people don't know

No. The guy is not contradicting himself. You see, ability to look at things from different angles is one of the qualities of a truly intelligent person.

The point he was trying to make there is that even though it is bad economics to restrict importation of fuel to those who have license to operate refineries, Dangote is not the only one who will benefit from such policy as there are other people who owns such license too. He was looking at it from different perspective.

I personally don't support that Dangote's suggestion, but then, I can see that he has a point. Imagine spending all that billions of dollars to build a refinery only for some unscrupulous elements to flood Nigerian market with substandard fuel that sells at a price that is far lower than what Dangote can afford to sell and make profit. His refinery would just fold up and billions used in building it gone!

Government just have to find a way of regulating the market to encourage those who operate refineries without creating room for monopoly.

Rugaria:


@ the bolded,
Are you not contradicting yourself?

Godarz:


1.There are over 20 licensees for refineries in Nigeria, out of which 4 are active. What Dangote is suggesting will also include these guys, including his arch rival and enemy BUA...

2.Secondly, you did not read the article...



The suggestion is when the said refinery is undergoing TAM....then imported fuel could be used to meet up with demand..

Of course, restriucting import to refinery licencees is bad economics...but it won't just benefit Dangote.

Oga shut-up...to comment no be by force.Don't display ur ignorance in public all in the name of 'I must comment'.