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Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? - Business (5) - Nairaland

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Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by shegun4sur: 3:36am On Jul 17
TheSparrow:
This writeup is loaded with ignorance, weak assumptions and false narratives.



You have not educatively debunked anything therein, aside cast aspersion on someone's efforts, which is quite uncommendable

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by skj1377(m): 3:42am On Jul 17
Hello Oga. Please we have failing PR officers for the Dangote group on nairaland. First quote the law your talking about! And does the law take effect on uncompleted projects to the extent that $1billion will be spent impromptu. Liers every corner of Nigeria. How do you know no bank has called in their loan do you work for all banks or you work for Dangote group? Your just a paid PR officer how much are they paying you to peddle falsehood. Yes the writer complained of a lack of project management skills in the conception and delivery of the project which has resulted in unnecessary delays, you just said the first delay was because they increased the daily output from 450k to 650k and so they recalibrated the design. Why would Dangote arbitrarily change the design of a project of such scale does it look like a room and parlour he is building now look at how many "k" he can produce per day now "0k". Your next point was a delay of 4 months, how does for months explain a delay of 8yrs and counting. Your third point was covid 19, the project had been delayed for 7yrs prior not a valid point besides the project is estimated to be completed 2025 as only the fertiliser section will start operation next year. You finally made mention of loans becoming foreign reserve or foreign direct investment, Oga at this junction are you an educated illiterate how does a loan for an individuals private business translate into foreign reserve of a country do you think any of those $ came to Nigeria at all. The refinery is imported as well As all it's components the loan is to pay the invoices of the different manufacturers and other logistics and consultation costs period. Ajaokuta steel company that probably would have produced the complete refinery at a fraction of the cost is not working so who will send us the dollars for what we can't produce? As you can see the money is not enough, the project is far from complete and as such can't be used to service the matured obligations debtors are knocking. If your paid to do PR for Dangote your not doing well stop telling unnecessary lies besides what agreement did only Dangote have with the federal government that allowed only his cement trucks to cross our international boarders when they where locked against all other manufacturers in Nigeria. Do you know how many Nigerian's are in unemployment market because of that.
deenee:


Clearly who ever paid you for this watery write up didn't pay you well enough or must have over estimated your ability to do this hatchet job right.

First and foremost, no bank has called in Dangote's loans and infact they are falling over themselves to extend loans to him.

Secondly by law NNPC will have an equity stake in any refinery project that capacity to refine more than 200k barrels per day. This is the law that has been sacrosanct and in effect even before Dangote got his license to build a refinery so all the gist about NNPC bailing him out is bullocks!

Thirdly, the completion day for the Refinery was shifted about three times for the underlisted reasons

First was when he decided to increase the proposed capacity from 450k to 650k per day hence they had to recalibrate the entire project schedule neccesitating the néed to shift.

Second was due to community clashes at project site and work stopped for over 4 months at this time

Thirdly due to the covid 19 induced pandemic

Now back to the loans and financing for the refinery, there is 30% equity contribution from Dangote himself, 60% foreign loans and 10% local debt from a syndication of banks.

Even the foreign loans have been brought in tranches as foreign direct investment forming part of the foreign reserves hence, the reason why he has a fixed repo contract with the CBN. And he is not the only one that has. All institutional investors both local and foreign have one kind of Fixed USD contract arrangement with the CBN. Even Innoson Motors has same so I wonder why the search light is on Dangote alone?

Let me also burst your bubble, Dangcem market cap is around 3 trillion naira making it one of the most capitalised stocks on the NGX and Dangote owns about 90% of DangCem directly and even doing share buy back to increase his stake.

So if he runs into any trouble all he needs to do is sell a few Dang Cem shares and move on. The same company is poised to do a trillion naira in turnover this year.

Finally the bloated cost your are quoting g here including the transatlantic pipeline, fertiliser plant and refinery.

Don't allow your self to be used as s tool of destruction and yes the refinery will work and Dangote will get more wealth whether you and your cohorts like it or not.

God bless Dangote
GOD BLESS Nigeria


5 Likes 1 Share

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seguno2: 4:09am On Jul 17
Goldenboy224:
cool
If Nigeria breaks (Biafra, Oduduwa, Ijaw and Arewa).
You will truly know that dangote is just a political tool.

Or a political fool
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seguno2: 4:10am On Jul 17
SimplyFacts:
Don't you see any around?

He is waiting for you to use it then he will consider following your example.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seguno2: 4:11am On Jul 17
mbahdi:
Dangote d mvp of nigeria.a good man with a devil's heart

How can the devil’s heart be in a good man
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seguno2: 4:12am On Jul 17
TheSparrow:
This writeup is loaded with ignorance, weak assumptions and false narratives.

That the sparrow failed to point out. Not even one
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seguno2: 4:14am On Jul 17
MEGAWATCH:
Ajokuta steel unsuccessful,
Dangote refinery going the same way,
What will ever work in Nigeria?

Nothing except we Nigerians are ready to work on our societies and communities on principles rather than affiliations.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Gval123: 4:17am On Jul 17
No true billionaire in Nigeria, they are all politicians, stealing from the people. olay

2 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by jaxxy(m): 4:34am On Jul 17
Yankee101:


You think a refinery is serving Nigerians?

Nope. The world is moving to clean energy


Wind, sun, batteries

You think it's a coincidence the oil majors are living nigeria?

We all know that bt it will still take awhile. That technology is still developing, crude oil prices have gone up and the world is still very much dependent on oil. So wise countries and still using oil bt developing their new technologies to reduce oil dependency.

Africa is still behind this this so it will and should serve Nigeria and africa’s needs for much longer.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by velocity25(m): 4:44am On Jul 17
Investing such amount in oil sector whereas the same amount in infotech will generate more profits than this.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seguno2: 4:44am On Jul 17
Gval123:
No true billionaire in Nigeria, they are all politicians, stealing from the people. olay

Are we Nigerians so much mumu to allow them steal from us
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Dashlish12: 4:48am On Jul 17
damosade:
That place is a city on its own. Was there yesterday .
Good morning sir, if u need land in ibeju/lekki Dangote/fertilizer axis for as low as 2m per plot with gazette title or 700k per plot with survey copy direct from the family (not real estate) pls mention me
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Dashlish12: 5:04am On Jul 17
People saying: "taking Chukwuemeka money to enrich Haruna... what are Obi Cubana's people doing with all their money this weekend?" Naturally, the reply would be that Dangote was granted a monopoly... really? Why didn't they apply during OBJ and GEJ time. sir if u need land in ibeju/lekki Dangote/fertilizer axis with gazette title or survey plan for a relatively low price direct from the family; pls mention me

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by loswhite(m): 5:37am On Jul 17
Why is everyone intrested in importing fuel? Why are we supporting those that have refused to invest in building a refinery to have a license to import fuel in the future? It is baffling to see that same citizens that have been clamoring for a refinery is now supporting and fighting for multiple ppl to have license to import fuel... The problem of this country is the citizens
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by seunayantokun(m): 5:56am On Jul 17
Doing right and correct things brings true peace and prosperity to people and nations and their businesses but evils, overt or covert, known or unknown, bring them down to shame. Good morning Nigeria.

1 Like 1 Share

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by SIRTee15: 6:06am On Jul 17
deenee:


Refinery business is not profitable yet Saudi Aramco is worth over 2 trillion dollars.


Aramco is Saudi equivalent of nnpc, except it's properly managed. Its a state owned enterprise.
They are into all sectors of oil n gas including the highly profitable ones like crude oil drilling where majority of their revenue comes from anyway.
Petroleum products are dirt cheap in Saudi Arabia because of heavy govt subsidy.
Aramco is not in the domestic refinery market for profit. Pls, don't compare it to Dangote.

3 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by descarado: 6:26am On Jul 17
9jaRealist:


The Orient Refinery is in ANAMBRA State…
And was commissioned by President Jonathan years ago.

More (tribal -inspired) IGNORANCE parading as public commentary in Nigeria. SMH
>

Seplat gas plant was what I had in mind, not Orient refinery.

Team tribal. Wonder if the owner of this place pay you guys when you join in tribal bashing.Grow up please. See how he rushed to comment like an immature adolescence

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by jackcanfield(m): 6:36am On Jul 17
It is like this writer doesn't know how international financing works, do you think he would take a short term loans with no moratorium of up to five years for a refinery this size, it is possible they had other technical delay, because it makes perfect sense to start quick for a refinery with a break even period of seven years, I don't think finance is the problem, but you can't sabotage safety for profit in a mega project of this size. The NNPC was never called to bail anyone out, but they're just using their powers to want to muscle a 20% stake pending when Baba sign the PIB... Moreover they are private placements, in fact 1000 ways to raise finance, and the Saud's are there with cheap money.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by breathelove(f): 6:39am On Jul 17
Jimasun:

Dangote refinery has passed the stage where it would need a bailout.
It is already over 90% completed.
There is no financial bottleneck.
Dangote is even reluctant to accept the offer of FG to buy 20% stake in the refinery.
Hmmm.
Everyone with his own story. Only time would tell.

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by jamace(m): 6:46am On Jul 17
seunayantokun:
Doing right and correct things brings true peace and prosperity to people and nations and their businesses but evils, overt or covert, known or unknown, bring them down to shame. Good morning Nigeria.
Gbam. Thanks for the beautiful quote. cool
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by LagbajaTheBEREAN: 7:20am On Jul 17
Folabifreeman:
The Rich keeps getting richer

The poor still Feeding the Rich.
Sadly, the shooting that happened some days ago in his factory has been silenced and we've moved to better things..


Money play, power play..

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Crunchyg2: 7:56am On Jul 17
chukwuibuipob:
Ur address what y have as collateral
0:7:0:6:1:6:2:4:4:0:2 chat or call me up
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Reference(m): 8:17am On Jul 17
What is all this nonsense.
Everyone knows the difficulty surrounding industrial investment. Everyone knows the high cost of doing business in Nigeria. Everyone knows the challenges around getting sensible credit in this country.

There is a refinery emerging and it will succeed at the end because the man has a track record of developing and sustaining industrial investment.

If a venture industrialist has tough challenges setting up shop it is rather an indictment of this country and its failed structures not him and it is a stern warning that the much needed economic development we earnestly seek will not happen if we cannot make the pastures green particularly for foreign investment who will be looking at Dangote's successes or failures as a barometer to their decisions about Nigeria.

Countries that earnestly seek investment bend over backwards with all sorts of economic stimuli from tax breaks, subsidies and lean credit to ensure it happens. It is not new.

It is only new to those who want total state control of our economy to promote their age old rent seeking nature that cannot see through this and see this through.

They should let this man and his refinery be abeg.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by poiZon: 8:30am On Jul 17
oluseyiforjesus:
As long as his cement is not cheap is not a bailout but ............
It's a big shame if FG celebrate ds refinary, wat u can't build a man single handedly built it. It's a shame on FG
He did not śingle handedly built it.
He got fx at way cheaper rate, his consignmemt doesnt sleep in the port, am sure too they dont even get any clearing fees from him.
Now the nnpc wants to buy 20% stake in it while overexagerating the actual cost of a project that hasnt been completely completed, in all these am seeing the more powerful and less educated North holding the sophisticated, more enlightened but divisive South to its jugular.
We r doomed in the south.
Anytime i see the Nigerian map, the landmass that the North possess compare to the landmass of the south yet they still thinking of capturing lands thru ruga, grazing routes and all those foolish projectures... I weep..
We have been conquered by less educated fools cos we r chasing money.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by benzine: 8:39am On Jul 17
deenee:


Na only Nigeria oil dey? even Ghana get oil and they have discovered oil in semi commercial quantities along Chad basin and River Niger-Benue trough.

He can also choose to buy from any of the countries in the middle east, India and even OPEC. Even your so called militants will see to him once the price is right


Guy that refinery will never be profitable buying oil from the international market. Pls don't kid yourself. What about the gas to power the facilities? Refineries are not as profitable as u think
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by deenee: 8:40am On Jul 17
afube:




I feel for Dangote really, his projections may be way off considering the massive earthquake taking place in the automobile industry worldwide .........how will the massive refinery meet its revenue projection with the massive uptake of electric-powered vehicles in China and Europe in particular, even the united states is going to launch a massive build-out of recharging stations for EV all around the country with massive subsidies for companies selling Electric Vehicles................... This electric vehicle revolution may be a knockout blow for that Dangote refinery and will definitely affect the price of crude oil going forward.......................................in my view Dangote should have invested these mega billions in battery production for the EV industry.


please note that electric vehicles are more efficient and effective cars than petrol-powered cars, they are more expensive right now but they will become cheaper than petrol cars in the next 3-5 years, it is not looking too good for Dangote industry as a whole....sad really

The mistake you people keep making with this EMV buhahaha is you assume Dangote wants to sell his refined crude to foreigners which is not correct.

How many electric cars do yiu see in Nigeria or even West Africa that is is target market?

Please let's stop mixing apples and oranges.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by slowice(m): 8:42am On Jul 17
oluseyiforjesus:
As long as his cement is not cheap is not a bailout but ............
It's a big shame if FG celebrate ds refinary, wat u can't build a man single handedly built it. It's a shame on FG

Did you even read the post? Dangote is not building shit, we re all being used, its a fking community project that belongs to one man and the community gains nothing from it but more reap off.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by slowice(m): 8:44am On Jul 17
We are all being used repeatedly to satisfy one man and his huge ego....
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by deenee: 8:51am On Jul 17
skj1377:
Hello Oga. Please we have failing PR officers for the Dangote group on nairaland. First quote the law your talking about! And does the law take effect on uncompleted projects to the extent that $1billion will be spent impromptu. Liers every corner of Nigeria. How do you know no bank has called in their loan do you work for all banks or you work for Dangote group? Your just a paid PR officer how much are they paying you to peddle falsehood. Yes the writer complained of a lack of project management skills in the conception and delivery of the project which has resulted in unnecessary delays, you just said the first delay was because they increased the daily output from 450k to 650k and so they recalibrated the design. Why would Dangote arbitrarily change the design of a project of such scale does it look like a room and parlour he is building now look at how many "k" he can produce per day now "0k". Your next point was a delay of 4 months, how does for months explain a delay of 8yrs and counting. Your third point was covid 19, the project had been delayed for 7yrs prior not a valid point besides the project is estimated to be completed 2025 as only the fertiliser section will start operation next year. You finally made mention of loans becoming foreign reserve or foreign direct investment, Oga at this junction are you an educated illiterate how does a loan for an individuals private business translate into foreign reserve of a country do you think any of those $ came to Nigeria at all. The refinery is imported as well As all it's components the loan is to pay the invoices of the different manufacturers and other logistics and consultation costs period. Ajaokuta steel company that probably would have produced the complete refinery at a fraction of the cost is not working so who will send us the dollars for what we can't produce? As you can see the money is not enough, the project is far from complete and as such can't be used to service the matured obligations debtors are knocking. If your paid to do PR for Dangote your not doing well stop telling unnecessary lies besides what agreement did only Dangote have with the federal government that allowed only his cement trucks to cross our international boarders when they where locked against all other manufacturers in Nigeria. Do you know how many Nigerian's are in unemployment market because of that.


I won't even bother to respond to you. I will just drop a few pointers for you to have an introspective reflection on

Go and read to understand how Foreign Direct Investments work.
Secondly, no Bank has called in any loan otherwise his name would be on the list of defaulters periodically published by banks as stipulated by CBN.

Dangote is not the reason you are unemployed and building a 650k bpd capacity refinery is not beans. There are bound to be delays even beyond his own control.

Even the OEMs delayed from their end too.

Don't let bad belle and envy destroy you. The refinery will soon start operations and there is absolutely nothing y'all can do about it!
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by emapeteum(m): 8:55am On Jul 17
TheSparrow:
This writeup is loaded with ignorance, weak assumptions and false narratives.
Pls counter his with fact
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by deenee: 8:55am On Jul 17
benzine:



Guy that refinery will never be profitable buying oil from the international market. Pls don't kid yourself. What about the gas to power the facilities? Refineries are not as profitable as u think

He is not buying directly from Nigeria neither he has said that severally because he wants to avoid all the issues and inconveniences you people bring to business. He can go into a futures agreement where he can fix rates now for future supply. Oil supply plenty everywhere.

And the sale of by products from the refined crude and gas will be additional cash flow to support the revenue from refined crude.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by deenee: 8:56am On Jul 17
Reference:
What is all this nonsense.
Everyone knows the difficulty surrounding industrial investment. Everyone knows the high cost of doing business in Nigeria. Everyone knows the challenges around getting sensible credit in this country.

There is a refinery emerging and it will succeed at the end because the man has a track record of developing and sustaining industrial investment.

If a venture industrialist has tough challenges setting up shop it is rather an indictment of this country and its failed structures not him and it is a stern warning that the much needed economic development we earnestly seek will not happen if we cannot make the pastures green particularly for foreign investment who will be looking at Dangote's successes or failures as a barometer to their decisions about Nigeria.

Countries that earnestly seek investment bend over backwards with all sorts of economic stimuli from tax breaks, subsidies and lean credit to ensure it happens. It is not new.

It is only new to those who want total state control of our economy to promote their age old rent seeking nature that cannot see through this and see this through.

They should let this man and his refinery be abeg.

God bless you

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