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Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? - Politics (6) - Nairaland

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Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by Keemsleek005(m): 5:03am On Mar 01, 2021
[quote author=wman post=99498408]

Lmao.

We want our country to be richer and get fair value for its resources. Already, we are sinking into debts and can't afford to fund infrastructure and other projects without foreign loans. You are here lying that we gave more than enough crude oil?

How do people like you reason? Don't you want your country to progress? Don't you want your country to get richer? What do you gain from supporting Dangote and his crony capitalism? [/quote

Nigeria as abundant crude oil thats true, refining as been our problem and am happy lot of refineries are coming up modular ones and mega ones. And cos its a local contents it must be sold in naira so as not to kill the economy futher. What most people dont understand is that the oil cabals just want to make more money and more money and they dont send the masses.
The truth is we need them more than they need us, thats why they can hold any goverment ransom at anytime.

Even an ordinary seller of phones or stuffs think of his profit first before anybody. When u get to that higher stage u will understand and think that way too someday.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by Keemsleek005(m): 5:13am On Mar 01, 2021
loswhite:
so you mean you will buy refined fuel from petrol stations with USD right....lol most Nigeria citizens are just educated illiterate.
The truth is alot of ppl had license to build refineries but refused to do so rather they imported fuel to the detriment of all Nigerians and became billionaires due to subsidy scam. It is important to note that fuel importation is part of the inflation we are experiencing due to a weaken naira against the US Dollars.
Dangote decided to do the needful and he is saying if there is a shortfall in the future only those with active license of refining should be able to import the product. The question I want to ask my fellow citizens is why do we want to support ppl that choose to focus on importation rather than refining? In what way do this ppl benefit us as Nigerians? Why do we want ppl without refineries to be importing fuel when there is a short fall? If only these ppl choose to build refineries in the first place there will be no need for importation due to shortfalls


So true, but lot of modular refineries are coming up people dont know that there are up to 80 refineries coming up small and mega ones, thou am not a fan of dangote, ever business man wants to make profits. Importation favours them well cos of the scam underneath it that people dont know. Who wants to loose free money?

1 Like

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by lexy2014: 5:38am On Mar 01, 2021
Keemsleek005:



As much as every businessman is a thief, dangote not paying tax is a ppp agreement with the goverment in repairing roads such as oshodi apapa road, i think tincan too etc. Ibeto too can sign such ppp agreement against paying tax for a period of years.

Are u sure u read my post before commenting?
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by namedo: 5:42am On Mar 01, 2021
Corruption is a hindrance to economic growth.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by CSTRR: 6:24am On Mar 01, 2021
Exactly.

Dangote makes 66% profits in the Nigeria cement market.
The highest in the world.

This is a man that exploits limestone in Nigeria without needing to import.

I fear about his petrol prices from his refinery.

1 Like

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by tempest01(m): 6:30am On Mar 01, 2021
tutudesz:

Madam leave me!! Am not into old woman undecided

Why una dey call the bot madam? am i missing something?
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by tutudesz: 7:32am On Mar 01, 2021
tempest01:


Why una dey call the bot madam? am i missing something?
Na old woman O!
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by madridguy(m): 7:47am On Mar 01, 2021
A very brilliant article.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by netmillionaires(m): 8:09am On Mar 01, 2021
Exactly! I like your opinion. We should be able to chose whom to buy from that is why we insist that others be allowed to stay in business. Dangote is trying to force government to close down other businesses so he would be the only seller of petroleum at least for the next three years



favor914:
No one forced you to buy refined crude from Dangote Oil, you can still purchase from NNPC if you so choose, now we have an option the choice is yours.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 27Pushing30: 8:12am On Mar 01, 2021
MansoryMX:
Only a matured mind will take his/her time to read up this beautiful article and see the danger that lies ahead for Nigerians. I drove down to a nearby refilling station to buy petrol this evening and i was shocked it’s now sold for 175-190/liter (excluding the already tampered fuel pump). It shall never be well with Buhari, his thieves and all those who voted this evil government in power. As for those of you still supporting this government because of stipends y’all benefits from them, Doomsday will visit you all!

Please ask anybody in the Oil industry ... Dangote cannot sell to Nigerian companies in Dollars.

That is why he’s saying let him buy in Naira (USD value shall be converted to Naira) and vice versa

Even when buying some products from NNPC which require a local LC to be established the invoice carries the USD value with a proviso on benchmark Naira payment (converted)

If for any reason the above is not the case then I think it’s time for “Dangote to go”

Enough of the oppression
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by tempest01(m): 8:34am On Mar 01, 2021
tutudesz:

Na old woman O!

Oh...be like say I don too inactive for here. All the coven hags don come full here. Most of them na abroad based jobless, family migration helped BMC crew.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by tutudesz: 8:54am On Mar 01, 2021
tempest01:


Oh...be like say I don too inactive for here. All the coven hags don come full here. Most of them na abroad based jobless, family migration helped BMC crew.
Na so O!
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by DSDLIVEREPORT: 9:18am On Mar 01, 2021
God bless the writer of this piece . All the section of the Nigerian economy is structured to benefit the very privileged few.
It is glaring that this has become a peril for new entrants into any of this sector. Nothing Will just work in your favour.
But I tell you if the players don't adjust to free Nigerians from this forced bondage,the chain will be broken when a Jerry Rawlins comes to manage our economy.

I am waiting to see.how.many likes this expository will get .kudos to the writer.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by Nobody: 9:34am On Mar 01, 2021
wman:


It's actually because of Dangote that Nigerians pay the highest price for cement in Africa. Dangote cement is cheaper in Ghana than Nigeria. Nigerians pay one of the highest prices for cement in the world.

Dangote is a monopolistic bastard that has nothing good to offer Nigeria apart from enriching himself and his government cronies. That guy is doing more to impoverish Nigerians.
This envious criticism won't amount to anything. Ask your billionaire brothers to build cement factory and bring the price down. I think nobody force u to buy his cement. In Niger Republic cement is much more expensive than in Nigeria, they buy it from here and transportation hike it.
You're accusing him of monopoly when in fact Sokoto cement and Ashaka were there before him, later BUA came and prosper. So what is there that make it monopoly?

2 Likes

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by ThierryJay: 10:15am On Mar 01, 2021
loswhite:
so you mean you will buy refined fuel from petrol stations with USD right....lol most Nigeria citizens are just educated illiterate.
The truth is alot of ppl had license to build refineries but refused to do so rather they imported fuel to the detriment of all Nigerians and became billionaires due to subsidy scam. It is important to note that fuel importation is part of the inflation we are experiencing due to a weaken naira against the US Dollars.
Dangote decided to do the needful and he is saying if there is a shortfall in the future only those with active license of refining should be able to import the product. The question I want to ask my fellow citizens is why do we want to support ppl that choose to focus on importation rather than refining? In what way do this ppl benefit us as Nigerians? Why do we want ppl without refineries to be importing fuel when there is a short fall? If only these ppl choose to build refineries in the first place there will be no need for importation due to shortfalls

For the most part, fair points. However, pls note that while it's not a crime for Dangote's interest to be mainly driven by business profits considerations, the Government has a duty to drive policies that benefit the greater population (utilitarianism) and not a select few.

We need to define the specific benefits that Nigerians will gain from Dangote refinery operations. Is it to manage our fx reserves and exchange rate? I really don't see that happening as they will sell to him in Naira which might outweigh the fx saved from not importing the equivalent of Dangote's local output. Multiplier effect is of little relevance here as we are talking about what will impact hundreds of millions of Nigerians and not a few thousands in Ibeju-Lekki and co.

So if it isn't to defend Naira value, then it has to be more affordable retail pricing. But if Govt leaves this aspect to Dangote, he'll eventually raise prices to further his profit motives. So, the pricing must be regulated just like NCC does with the Telcos that's making data and airtime more affordable. The incentives Obasanjo gave to the Telcos yielded the desired results, despite also being affected by our volatile economic situation. But why hasn't the incentives in Sugar and cement yielded same under even better economic conditions? The common factor I see here is Dangote and Rabiu. What guarantee is there that the pricing failure in sugar and cement will not be replicated with Dangote's retail oil pricing? That's why regulation is key here.

On your point about Dangote's suggestion where there's supply shortage in future, I prefer an open market situation, for both importers without licences and all as it will benefit more Nigerians. If truly Dangote's refinery is in Nigerians best interest through affordability, then he should have little to worry about if unlicensed importers are bringing in petrol as he should be able to leverage his economies of scale to achieve lower pricing and thus higher market share.

I have nothing against Dangote and I actually believe his refinery is a step in the right direction. But it's crucial that Nigeria does not create an economic monster that would feed fat on our collective well-being all in the name of being a risk-taking capitalist. So questions must be asked and gaps plugged ab initio.

The Telco model should be replicated with the private refinery sector.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by jaxxy(m): 11:08am On Mar 01, 2021
I think it is comply wrong for one man or business to gain at the expense and detriment of the country and masses.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 11:46am On Mar 01, 2021
kirajustice:
TAYO IRANTIOLA, Lagos
https://politicsnigeria.com/backward-integration-in-sugar-cement-and-now-petroleum-who-are-the-real-beneficiaries/

Tayo Irantiola writes from Lagos Nigeria...

grin grin grin

Bitter, petty-minded Nigerians...SMH

Cement: the backward integration policy started by the Obasanjo administration has transformed Nigeria from reportedly the second-biggest importer of cement (second only to the US), spending billions of US dollars supporting cement manufacturing jobs abroad (there used to be so many ships lining the seas approaching Nigeria that UK-based The Economist magazine dubbed it “The Great Lagos Cement Armada”), to presently a NET EXPORTER of cement, earning foreign exchange for Nigeria, saving the BILLIONS Nigeria used to spend on imports, and (perhaps the most important) CREATING TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS all along the value, and in the process creating wealth and generating tax revenues for Nigerian governments to invest in schools, hospitals, public transportation, infrastructure, etc. (if the politicians do not steal or embezzle same first).

Meanwhile, Nigeria’s three major cement producers - Dangote, BUA, and LaFarge (which btw is the world’s BIGGEST cement producer, and have continuously operated in Nigeria in various firms since 1950s/60s, before some of our parents were born), are publicly-listed on the Nigerian Stock Exchange. That means that any Nigerian is free to SHARE in their supposed “crony” windfall profits.

Petroleum Refining: It should be a a monumental embarrassment to even the most jaundiced and miseducated Nigerian that one of the world’s largest producers of crude oil spends the single biggest portion of its scarce foreign reserves importing refined petroleum products and propping up foreign refineries and foreign jobs. Meanwhile, Nigeria’s four government-owned refineries lost a collective N154 BILLION in 2018 (which is bigger than the education and/or health budget of EVERY single one of Nigeria’s 36 states in the same year), while producing little or NOTHING (specifically, the Kaduna Refinery produced ZERO products the entire year). The TRILLIONS of Naira ($9.95 billion last year, according to OECD figures) that is spent on importing products yearly is greater than the federal government’s capital budget for education, health, agriculture, housing, etc. In other words, Nigeria spends more supporting foreign refineries and foreign jobs than the capital expenditure on roads, bridges, schools, hospitals, local food production and husbandry, low-cost/affordable housing, etc.

When the Dangote refinery fully comes on stream (even before the BUA refinery subsequently), the net effect would be to transform Nigeria from its DISGRACEFUL position (given our hydrocarbon endowments) as one of the world’s leading importers of refined petroleum products, propping up foreign refineries and foreign jobs thereto, to a NET EXPORTER of refined products, earning much-needed forex for Nigeria (unfortunately necessary for a still primarily import-dependent economy), saving BILLIONS in scare foreign reserves currently being used to import refined products into Nigeria (reportedly 41% of foreign currency reserves last year), and CREATING TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS, which again creates local wealth and generates increased tax revenues for the federal and state governments to (hopefully) invest in schools, hospitals, housing, public transportation, infrastructure, etc. (if the politicians can keep their hands out of the till).

It bears noting that there were reportedly more than 28 licenses already previously issued for private refineries (going all the way back to the Obasanjo administration) BEFORE Dangote (among others) was issued with its own license by the Jonathan administration, and licenses for private refineries continue to be issued to the present day.

Sugar: Admittedly not an expert on this particular sector of the economy, except knowledgeable enough to know that Nigeria is one of the world’s leading importers of sugar, despite having the sorts of favorable weather and natural agricultural endowments for massive local production. The nearly $500 million that Nigeria reportedly spent on raw sugar imports last year is MORE than the entire capital expenditure budget of every single one of Nigeria’s 36 states (with the possible exception of Lagos). In effect, Nigeria spends more money propping up plantations and workers in Brazil (and the US) than each Nigerian state government spends on building schools, hospitals, roads, housing, etc. Accordingly, every right-thinking Nigerian should be supporting this sugar backward-integration program, in the reasonable expectation that it will achieve the same substantive results as the cement (and expectedly petroleum refining) program, to wit: save millions expended on IMPORTS that support foreign economies and foreign jobs, while creating TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS!

Again, the good thing here is that at least two of the companies referenced in this jaundiced piece (Dangote Sugar and Flour Mills) are PUBLICLY-LISTED on the NSE. Accordingly, anyone who believes that that these entities are literally (or even metaphorically) printing money and are swimming in the alleged cash “windfalls” of crony capitalism are free to gobble up their shares!

Denouement: Sadly, I have grown to increasing recognize a truly unfortunate characteristic of many Nigerians, which I suspect is the legacy of a corrupt-invested society (and increasingly culture) - so many Nigerians would rather own 100% of NOTHING instead of 1% of SOMETHING! That’s why despite the ever-mounting gargantuan LOSSES racked up by the government-owned refineries, every single time the notion of privatization (even partially) is broached, many Nigerians scream blue murder!

Personally, I am always willing to listen to discussions about competition law and/or anti-trust regulations. Of course, Nigeria already have such laws and regulations in various forms, but something like Obasanjo’s Competition Bill of 2003 (which the National Assembly failed to seriously act upon) would be worth revisiting. Nonetheless, it is important to note (and this is arguably the most important aspect of this discourse) that there are NO discriminatory or such other laws, rules or regulations that PROHIBITS, PRECLUDES NOR PREVENTS ANYONE (foreign or domestic) from investing in the local production of cement or petroleum refining in Nigeria (and I have not included the Sugar industry, only because I am personally unfamiliar with that sector, not because there are necessarily any such discriminatory barriers)! Anyone who can afford (or raise) the BILLIONS OF DOLLARS involved in these ventures is FREE to go compete! But government should never ever be urged by nattering naboobs of negativity (apologies to Rockefeller) to effectively PUNISH success (in a nation that so often elevates failure).
>

1 Like

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by loswhite(m): 11:51am On Mar 01, 2021
ThierryJay:


For the most part, fair points. However, pls note that while it's not a crime for Dangote's interest to be mainly driven by business profits considerations, the Government has a duty to drive policies that benefit the greater population (utilitarianism) and not a select few.

We need to define the specific benefits that Nigerians will gain from Dangote refinery operations. Is it to manage our fx reserves and exchange rate? I really don't see that happening as they will sell to him in Naira which might outweigh the fx saved from not importing the equivalent of Dangote's local output. Multiplier effect is of little relevance here as we are talking about what will impact hundreds of millions of Nigerians and not a few thousands in Ibeju-Lekki and co.

So if it isn't to defend Naira value, then it has to be more affordable retail pricing. But if Govt leaves this aspect to Dangote, he'll eventually raise prices to further his profit motives. So, the pricing must be regulated just like NCC does with the Telcos that's making data and airtime more affordable. The incentives Obasanjo gave to the Telcos yielded the desired results, despite also being affected by our volatile economic situation. But why hasn't the incentives in Sugar and cement yielded same under even better economic conditions? The common factor I see here is Dangote and Rabiu. What guarantee is there that the pricing failure in sugar and cement will not be replicated with Dangote's retail oil pricing? That's why regulation is key here.

On your point about Dangote's suggestion where there's supply shortage in future, I prefer an open market situation, for both importers without licences and all as it will benefit more Nigerians. If truly Dangote's refinery is in Nigerians best interest through affordability, then he should have little to worry about if unlicensed importers are bringing in petrol as he should be able to leverage his economies of scale to achieve lower pricing and thus higher market share.

I have nothing against Dangote and I actually believe his refinery is a step in the right direction. But it's crucial that Nigeria does not create an economic monster that would feed fat on our collective well-being all in the name of being a risk-taking capitalist. So questions must be asked and gaps plugged ab initio.

The Telco model should be replicated with the private refinery sector.



I think it is contradictory when you refer to Telco model and yet you want companies without active refining license to be importing fuel... So the question is why would you have a license to refine petroleum products but choose to import rather than refine? Assuming till date we have only Econet would you have been able to boast of the Telco model? If most of the companies that obtained licenses for refining actually built a refinery, do you think we will be in this mess today? If you really want the telco model to be replicated then you should support the private companies that choose to build refineries rather than the ones that focuses on importation.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by istina: 11:57am On Mar 01, 2021
I nominate this as Nairaland write-up of the year
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 12:22pm On Mar 01, 2021
cool
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 12:46pm On Mar 01, 2021
wman:
It's actually because of Dangote that Nigerians pay the highest price for cement in Africa. Dangote cement is cheaper in Ghana than Nigeria. Nigerians pay one of the highest prices for cement in the world.

Dangote is a monopolistic bastard that has nothing good to offer Nigeria apart from enriching himself and his government cronies. That guy is doing more to impoverish Nigerians.
ThierryJay:
For the most part, fair points. However, pls note that while it's not a crime for Dangote's interest to be mainly driven by business profits considerations, the Government has a duty to drive policies that benefit the greater population (utilitarianism) and not a select few.

We need to define the specific benefits that Nigerians will gain from Dangote refinery operations. Is it to manage our fx reserves and exchange rate? I really don't see that happening as they will sell to him in Naira which might outweigh the fx saved from not importing the equivalent of Dangote's local output. Multiplier effect is of little relevance here as we are talking about what will impact hundreds of millions of Nigerians and not a few thousands in Ibeju-Lekki and co.

So if it isn't to defend Naira value, then it has to be more affordable retail pricing. But if Govt leaves this aspect to Dangote, he'll eventually raise prices to further his profit motives. So, the pricing must be regulated just like NCC does with the Telcos that's making data and airtime more affordable. The incentives Obasanjo gave to the Telcos yielded the desired results, despite also being affected by our volatile economic situation. But why hasn't the incentives in Sugar and cement yielded same under even better economic conditions? The common factor I see here is Dangote and Rabiu. What guarantee is there that the pricing failure in sugar and cement will not be replicated with Dangote's retail oil pricing? That's why regulation is key here.

On your point about Dangote's suggestion where there's supply shortage in future, I prefer an open market situation, for both importers without licences and all as it will benefit more Nigerians. If truly Dangote's refinery is in Nigerians best interest through affordability, then he should have little to worry about if unlicensed importers are bringing in petrol as he should be able to leverage his economies of scale to achieve lower pricing and thus higher market share.

I have nothing against Dangote and I actually believe his refinery is a step in the right direction. But it's crucial that Nigeria does not create an economic monster that would feed fat on our collective well-being all in the name of being a risk-taking capitalist. So questions must be asked and gaps plugged ab initio.

The Telco model should be replicated with the private refinery sector.

First, with all due respect, some of you need to get out more, because Nigerian cement is among the CHEAPEST on the continent (and btw, Dangote Cement is 52.5R grade, the HIGHEST in the world - before Dangote, Nigerians were importing and buying 32.5-graded cement from Blue Circle, Holcim, LaFarge, Scancem, Heidelberg, and all the foreign companies operating in Nigeria since the 1950s/60s, before we were even born). Nonetheless, if you think Dangote and BUA cement are expensive, can you imagine what you would be paying presently for imported cement now that the Naira has free-fallen from about N112/US$1 to N410/US1 (in addition to the much higher shipping insurance rates because of the privacy-invested waters of the Gulf of Guinea)!

Finally, there has been NO benefit that has been peculiar to or granted specifically or specially to Dangote or BUA. Every industry that they are engaged in is OPEN TO ALL INVESTORS (foreign and domestic), and thus while sensible regulation (often lacking in Nigeria, where regulators most often view their roles as, or constitute themselves into, industry adversaries) is always necessary to maintain the integrity of markets and protect vulnerable consumers, most of the discussions around these subject matters (and particularly Dangote and, to a lesser extent, BUA) are, when stripped of all intellectual pretensions, little more than a call to PUNISH their success.
>
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 12:49pm On Mar 01, 2021
namedo:
Corruption is a hindrance to economic growth.

And so is ignorance (not directed at you in particular, but sadly reflected in many of the thread comments). embarassed
>
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 12:57pm On Mar 01, 2021
jaxxy:
I think it is comply wrong for one man or business to gain at the expense and detriment of the country and masses.
DSDLIVEREPORT:
God bless the writer of this piece . All the section of the Nigerian economy is structured to benefit the very privileged few.
It is glaring that this has become a peril for new entrants into any of this sector. Nothing Will just work in your favour.
But I tell you if the players don't adjust to free Nigerians from this forced bondage,the chain will be broken when a Jerry Rawlins comes to manage our economy.

I am waiting to see.how.many likes this expository will get .kudos to the writer.

Bros, if you have billions of dollars to build a refinery (or cement or sugar plant), get at it! grin

There are NO laws preventing, precluding or prohibiting anyone from doing so...
So let’s quit the petty Nigerian thing of punishing success (while rewarding failure).
>
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 1:21pm On Mar 01, 2021
>
Stripped of all intellectual pretensions, the REALITY (and I am nothing if not a realist grin) is that there are so many Nigerians who will never get past Dangote’s ETHNICITY (the fact that he had lived in Lagos for the past 40 years - or about two-thirds of his life - is irrelevant to such people). In their narrow ethnocentric worldview, there is simply no way that ANYONE from Dangote’s ethnic stock would be as successful as he is without massive corruption and cheating enabled and/or promoted by his ethnic brethren.

The unfortunate reality is that if Dangote was from a different ethnic stock (and one particular ethnicity sticks out, but shall remain nameless grin), operating in the same Nigeria under the same laws and regulations, many of these same folks would be touting as a business genius (as we have witnessed so many far less successful so hailed). Sometimes that primordial ethnic bias and prejudice is couched in faux intellectualism and flowery prose, but that’s akin to spraying potpourri on manure and yet it’s still manure.
>
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by ThierryJay: 1:23pm On Mar 01, 2021
loswhite:
I think it is contradictory when you refer to Telco model and yet you want companies without active refining license to be importing fuel... So the question is why would you have a license to refine petroleum products but choose to import rather than refine? Assuming till date we have only Econet would you have been able to boast of the Telco model? If most of the companies that obtained licenses for refining actually built a refinery, do you think we will be in this mess today? If you really want the telco model to be replicated then you should support the private companies that choose to build refineries rather than the ones that focuses on importation.

Fine, you made a point there, if the sector is to be properly regulated then there has to be licensed operators for it to be effective.

But you've not addressed my major points in my previous comment. I'm really interested in your take on those.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by ThierryJay: 1:35pm On Mar 01, 2021
9jaRealist:



First, with all due respect, some of you need to get out more, because Nigerian cement is among the CHEAPEST on the continent (and btw, Dangote Cement is 52.5R grade, the HIGHEST in the world - before Dangote, Nigerians were importing and buying 32.5-graded cement from Blue Circle, Holcim, LaFarge, Scancem, Heidelberg, and all the foreign companies operating in Nigeria since the 1950s/60s, before we were even born). Nonetheless, if you think Dangote and BUA cement are expensive, can you imagine what you would be paying presently for imported cement now that the Naira has free-fallen from about N112/US$1 to N410/US1 (in addition to the much higher shipping insurance rates because of the privacy-invested waters of the Gulf of Guinea!

Finally, there has been NO benefit that has been peculiar to or granted specifically or specially to Dangote or BUA. Every industry that they are engaged in is OPEN TO ALL INVESTORS (foreign and domestic), and thus while sensible regulation (often lacking in Nigeria, where regulators most often view their roles as, or constitute themselves into, industry adversaries) is always necessary to maintain the integrity of markets and protect vulnerable consumers, most of the discussions around these subject matters (and particularly Dangote and, to a lesser extent, BUA) are, when stripped of all intellectual pretensions, little more than a call to PUNISH their success.
>

With all due respect, it's obvious there are things you are not aware of behind the scenes.

Who told you there are no peculiar benefits or restrictions given to Dangote and co? Are you aware that local sugar production was only licensed to Dangote, BUA and Flour Mills in the whole of Nigeria? meaning even if you have the money you can't play directly in this sector.

Are you aware that Dangote and BUA got pioneer status incentive (5 year tax holiday) for Cement in 2017 even when cement was not on the approved pioneer list. This was issued and approved directly by Abba Kyari.

Say only what you know oga. Being a realist is not an excuse for ignorance of the implications of established facts.

For me, this is not an ethnic matter but an ethical matter from Government perspective. Regulating the refinery sector is not punishment but commonsense. Will you say NCC is just punishing the successes of MTN, Glo and Co.?

1 Like

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by jaxxy(m): 2:03pm On Mar 01, 2021
9jaRealist:



Bros, if you have billions of dollars to build a refinery (or cement or sugar plant), get at it! grin

There are NO laws preventing, precluding or prohibiting anyone from doing so...
So let’s quit the petty Nigerian thing of punishing success (while rewarding failure).
>

Many people and companies in Nigeria can do it. It’s not rocket science. Just don’t force detrimental policies on the people to the advantage of a few. Protect the masses.

That’s what we did and still doing in telecoms sector to have cheaper data and call rates.
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by COMPAQ(m): 2:38pm On Mar 01, 2021
jaxxy:


Many people and companies in Nigeria can do it. It’s not rocket science. Just don’t force detrimental policies on the people to the advantage of a few. Protect the masses.

That’s what we did and still doing in telecoms sector to have cheaper data and call rates.

I thought most Nigerians complain that our data and call tarrif are expensive.

1 Like

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 3:44pm On Mar 01, 2021
jaxxy:
Many people and companies in Nigeria can do it. It’s not rocket science. Just don’t force detrimental policies on the people to the advantage of a few. Protect the masses.

That’s what we did and still doing in telecoms sector to have cheaper data and call rates.

Dude, we RESTRICTED our GSM licenses to just 3 (plus 1 reserved for Nitel) out of many EOIs...
And there are NOT “many people and companies in Nigeria” that can build a $12-15 billion refinery. Quit it.
>
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by 9jaRealist: 3:46pm On Mar 01, 2021
angry
Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by Kubernetes: 4:13pm On Mar 01, 2021
Asswipemod:


And so in return you must strangle and starve the same people you're supposed to bring solution to their needs?

Govt brings solution because they receive our taxes.The biz man whose cost of production is #1 will want to sell above #1 no matter how little

1 Like

Re: Backward Integration In Sugar, Cement And Petroleum: Who Are The Beneficiaries? by jaxxy(m): 4:18pm On Mar 01, 2021
COMPAQ:


I thought most Nigerians complain that our data and call tarrif are expensive.

It’s was higher b4

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