No he won't , the guy doesn't believe in I.T , if he was in another country , he won't even worth 100 million dollars

thesicilian:
This guy would easily have become the world's richest man by now if he was in another country.

nony43:
In as much that i have done business from the scratch for years and i can say buying and selling is not easy, Dangote should know that if not of FG the Dangote group would have fizzled out. Dangote containers doesn't stay more than three days in Apapa and it's cleared. He can't even survive in US that runs on a capitalist economy. Let's give everyone a level ground to run a Cement factory nobody will consider Dangote cement when we've got BUA, Unicem, Ibeto and other upcoming. Let him enjoy when Igbo man become president all man go do business by force.

No be trading most of the ibos are into! Trading drains our forex as it rely on it. How I wish ibos can emulating Dangote. this would really help by reducing the exchange rate

Modrov:


So why can't other rich men do the same...and please don't tell me 'government'...because I am tired of that excuse.

Most Nigerian businessmen and women prefer to import stuff, and sell and run off. Many family owned businesses that were like Dangote before failed because the family members came and ran off with the money as soon as the founder died. (If you notice, Dangote isn't allowing his kids run things yet)

As for petrol....Dangote is able to build refinery because for now he has the money to take the risk. If we want more refineries, we have to remove fuel subsidy so that investors can come, build, refine, and sell fuel at a profit and recoup that profit. But you Nigerians don't want...so we run the risk of making Dangote a monopoly because we want cheap fuel...and even then, his refienry may lose money if we keep on subsidisng fuel below its production price.

How will his refinery lose money due to subsidy. Pls elucidate. Thanks

Modrov:


So why can't other rich men do the same...and please don't tell me 'government'...because I am tired of that excuse.

Most Nigerian businessmen and women prefer to import stuff, and sell and run off. Many family owned businesses that were like Dangote before failed because the family members came and ran off with the money as soon as the founder died. (If you notice, Dangote isn't allowing his kids run things yet)

As for petrol....Dangote is able to build refinery because for now he has the money to take the risk. If we want more refineries, we have to remove fuel subsidy so that investors can come, build, refine, and sell fuel at a profit and recoup that profit. But you Nigerians don't want...so we run the risk of making Dangote a monopoly because we want cheap fuel...and even then, his refienry may lose money if we keep on subsidisng fuel below its production price.

Sorry please, where you thinking like this in 2012 when GEJ was in power? Just asking

CXLVII:



smh…

What is Dangote monopolizing?

Is DSTV also monopolizing?

Or is Jeff Bezos also monopolizing?

Why y’all like blaming successful people for your woes.

Tell your village people to also form a union and invest in ways that could curtail Dangotes business dynamics and outreach.

Dude is a businessman that perfectly understands business.

Don't mind people. Rather than emulate him, build their own businesses in like fashion, all they do is pull him down.

He has done business with many Nigerian Presidents, North and South with no issues. If people say the Nigerian system provided him the monopoly to operate, what of his successes in 17 other African countries? Is he monopolising those countries too?

He is a shining example of what we want our business people to look like in Nigeria. 3 or 4 more Dangotes will reset our economy for sure. Let us build together and not tear down.

Some people might say Dangote is being spoonfed by the FG, but I actually like his business model and investment priorities, while some are using their money to build hotels and clubs that do not add any value to Nigeria in terms of Forex exchange earnings, Dangote is investing in high priority areas that will save Nigerian economy if there is another global economic meltdown tomorrow. Foods, cements, petrochemicals, fertilizers etc. Dangote is making Nigeria self sufficient in these areas. I can't believe Nigeria is now exporting fertilizers and other industrial goods to the United States and other developed countries. We can't continue to be import dependent as a country of over 200 millions people, manufacturing is the only way out of our economic mess and if we would ever have a chance to save Naira out of the woods, Zimbabwe dollars loading if we continue to be consuming and not producing. Dangote invests his money to prop up Nigerian manufacturing base, I don't know what better value you can ask someone to put their money into use for in a nation that is in dire need of industrial activities to save itself. Almost all people employed in Dangote factories and plants are Nigerians, and you wonder why government is supporting such a business person. Government should help businesses like Dangote's to thrive not suffocating them. But at the same time provide a room for competition among Dangote business allies.

nony43:
In as much that i have done business from the scratch for years and i can say buying and selling is not easy, Dangote should know that if not of FG the Dangote group would have fizzled out. Dangote containers doesn't stay more than three days in Apapa and it's cleared. He can't even survive in US that runs on a capitalist economy. Let's give everyone a level ground to run a Cement factory nobody will consider Dangote cement when we've got BUA, Unicem, Ibeto and other upcoming. Let him enjoy when Igbo man become president all man go do business by force.

buying and selling is d end point of manufacturing but u made very salient and factual points about dangote. govt patronage has sustained him this far

For a Profitable Trader, Manufacturing becomes like a portfolio diversification and backward integration. Produce what you have been trading and control the value chain. Monopoly

ourema:


Sorry please, where you thinking like this in 2012 when GEJ was in power? Just asking

Of course. (The petrol bit, I had my eyes opened under GEJ IN 2012...after reading up on subsides as a result of his attempt to remove subsidy then.... before then, I was a subsidy supporter through and through.)

Take cement...Dangote and the two other licensees got the same amount of favour from government....long before GEJ came around....and Dangote did well, Lafarge did well, Ibeto, not as well, then there is BUA which did not get government favour that is doing well too.

As for the 'everybody imports stuff'...it is true. Very true. Typical of a resource dependent country like Nigeria. Has been like that since independence.

Jerryherd:
Dangote is secretly planning another industry takeover, soon we will all be at the mercy of his monopoly

The huge billions he is pumping into diary farming , importing cattle breeds from France and Brazil

Shouldn't you be happy for him, how big is Netherlands that produce 382 million kilogram of milk. Alhaji takes advice a lot and I am very please with him. I just want him to finish the refinery before we go to the next phase.

rex21:


How will his refinery lose money due to subsidy. Pls elucidate. Thanks

Simple....

Subsidy is what the government pays as the difference between the production cost and the price set by government

For example, right now, it costs N256 per liter of fuel to bring in one liter of fuel into Nigeria. We sell that fuel at N162. Subsidy is the money paid to cover the losses. And the fact is, the cost of that liter of fuel keeps going up.

If Dangote refines fuel at home....it won't cost less than N200....because he has to pay his loans off, plus, he has to pay workers salaries at par with NNPC salaries...or else.He also has to earn enough profits.

But Nigerians want fuel at N40 or N87 per liter....and I doubt government can set prices that low and pay enough subsidy to cover Dangote loss...not with oil prices that low.

That's why NNPC's refineries all failed...the price of fuel was sold below what it cost to refine fuel from those same refineries. And the subsidy payments to NNPC were not sufficent enough to pay for the repairs, upgrades, etc of those refineries....which is why they stopped doing TAM from 1993 ...and why they all failed.



To sum up, subsides means that government sets a price that is too low for you to make a profit...and the subsidy they pay you cannot cover the loss made because there isn't enough profit. That's why we don't have refinereis, and we don't have good enough power supply.

Seniorwriter:
The richest man in Africa who is a citizen of a country that is a poverty capital of the world!....no thanks to bad and nepotistic leaders that are also clueless!




Stop showing your ignorant self on a public space as NL....Dangote is not building the refinery with only his capital/monies.


Pinned





Aptly put Dangote's business boom is due to Nigerian Corrupt leadership and nepotism + the ever growing population.
Yet same useless & clueless leaders makes policies and taxation processes very unattractive for investors....FG are more interested in money borrowings!

WE NEED YOUNG VISIONARY LEADERS IN NIGERIA COME 2023!


@SENIORWRITER

"We need young visionary leaders...". Was Dangote born an old man? He started young, worked hard, took his chances and today he enjoys the benefits. If his business boom was due to "clueless and nepotistic" leaders, then what can you say about his investments in other countries?

The problem with our youths these days is the desire to get wealthy by the fastest means possible. It's either yahoo or drugs/rituals/prostitution or any other form of crookedness.

Reading through this interview you'll see a man who had a vision about the future. He identified the loopholes and leveraging on what he had, he started from somewhere. The rest they say is history.

When youths talk about mentorship, they look up to such successful people as their models and desire to get close to that level. Dangote has first class students and professors working for him. Does that not show that he knows what he wants and does.

I believe that inspite of the difficulties in the land, there are many loopholes to get to the ladder of success. Manufacturing gives massive opportunities for success in life.

Lastly if you start today, you have the bank of Industry to help you out if you are stranded.

Modrov:


Simple....

Subsidy is what the government pays as the difference between the production cost and the price set by government

For example, right now, it costs N256 per liter of fuel to bring in one liter of fuel into Nigeria. We sell that fuel at N162. Subsidy is the money paid to cover the losses. And the fact is, the cost of that liter of fuel keeps going up.

If Dangote refines fuel at home....it won't cost less than N200....because he has to pay his loans off, plus, he has to pay workers salaries at par with NNPC salaries...or else.He also has to earn enough profits.

But Nigerians want fuel at N40 or N87 per liter....and I doubt government can set prices that low and pay enough subsidy to cover Dangote loss...not with oil prices that low.

That's why NNPC's refineries all failed...the price of fuel was sold below what it cost to refine fuel from those same refineries. And the subsidy payments to NNPC were not sufficent enough to pay for the repairs, upgrades, etc of those refineries....which is why they stopped doing TAM from 1993 ...and why they all failed.



To sum up, subsides means that government sets a price that is too low for you to make a profit...and the subsidy they pay you cannot cover the loss made because there isn't enough profit. That's why we don't have refinereis, and we don't have good enough power supply.

So, what you are saying is that Dangote cannot produce petrol at the same price as the refineries where we are presently importing from ??

rex21:


So, what you are saying is that Dangote cannot produce petrol at the same price as the refineries where we are presently importing from ??

Yes, but he won't be able to produce it as low as Nigerians want it either.

I don't expect petrol from Dangote refinery to be sold at less than N200. Niger, that has a refinery which even exports ...sells fuel above N350 at their petrol stations.

The fact is, if we want Dangote refinery to be profitable, we have to let everyone involved in petrol...from the man himself, to the transporters, and the marketers make enough of a profit to regain their money, and have enough left over to make improvements.

Modrov:


Of course. (The petrol bit, I had my eyes opened under GEJ IN 2012...after reading up on subsides as a result of his attempt to remove subsidy then.... before then, I was a subsidy supporter through and through.)

Take cement...Dangote and the two other licensees got the same amount of favour from government....long before GEJ came around....and Dangote did well, Lafarge did well, Ibeto, not as well, then there is BUA which did not get government favour that is doing well too.

As for the 'everybody imports stuff'...it is true. Very true. Typical of a resource dependent country like Nigeria. Has been like that since independence.

okay just wanted to know. People hypocrisy in the petrol subsidy issue is so amazing. I am indeed in support of total deregulation of the petroleum industry from inception.

ourema:

okay just wanted to know. People hypocrisy in the petrol subsidy issue is so amazing. I am indeed in support of total deregulation of the petroleum industry from inception.

I wasn't in support of deregulation till 2011, when I finally decided to read about it, after 'subsidy removal was in the news again'

What I read was enough to convince me to change my mind completely.

Modrov:


Yes, but he won't be able to produce it as low as Nigerians want it either.

I don't expect petrol from Dangote refinery to be sold at less than N200. Niger, that has a refinery which even exports ...sells fuel above N350 at their petrol stations.

The fact is, if we want Dangote refinery to be profitable, we have to let everyone involved in petrol...from the man himself, to the transporters, and the marketers make enough of a profit to regain their money, and have enough left over to make improvements.

So, what is/are the possible models these refineries we import from use that makes their production prices low ??

rex21:


So, what is/are the possible models these refineries we import from use that makes their production prices low ??

Their prices are not low.

If not, it won't cost us N256 per liter to import one liter of fuel from them ! (Plus some of the crude they use in refining comes from here).

Government makes NNPC buy at N256 or higher and sell at N162 AND pays NNPC a subsidy to cover the loss...which is how it works.

Modrov:


Their prices are not low.

If not, it won't cost us N256 per liter to import one liter of fuel from them ! (Plus some of the crude they use in refining comes from here).

Government makes NNPC buy at N256 or higher and sell at N162 AND pays NNPC a subsidy to cover the loss...which is how it works.

Aje! You just dey make me laugh with all these your replies. Abeg, dont be offended with my many questions.

Now, back to my initial question.
How will Dangote refinery make losses if subsidy still prevails ??

rex21:


Aje! You just dey make me laugh with all these your replies. Abeg, dont be offended with my many questions.

Now, back to my initial question.
How will Dangote refinery make losses if subsidy still prevails ??

Because Nigerians love subsidy so much they won't agree to him selling above his production price.

They would want him to sell to marketers at N200 per liter, while the marekters sell to them at N87 per liter...and government pays marketers a subsidy that won't adequately cover their losses, meaning that the marketers won't make enough of a profit to BUY FROM dangote...meaning dangote runs at a loss.

(Dangote would sell above 200 naira per liter because he has loans to pay and also, as I said earlier, has to pay his refinery workers out of any profit it earns.)

Modrov:


Because Nigerians love subsidy so much they won't agree to him selling above his production price.

They would want him to sell to marketers at N200 per liter, while the marekters sell to them at N87 per liter...and government pays marketers a subsidy that won't adequately cover their losses, meaning that the marketers won't make enough of a profit to BUY FROM dangote...meaning dangote runs at a loss.

(Dangote would sell above 200 naira per liter because he has loans to pay and also, as I said earlier, has to pay his refinery workers out of any profit it earns.)

.
If Dangote produces and sells at the same price petrol lands in Nigeria and subsidy is in place, will he run at a loss ??

Federal government opportunity!

rex21:


.
If Dangote produces and sells at the same price petrol lands in Nigeria and subsidy is in place, will he run at a loss ??

Not if the marketers themselves are allowed to sell the fuel at a price above the landing cost...enough to recoup their money, and cover the cost of transporting the fuel from refinery to station..

Let's see how it works...if Dangote is allowed to sell fuel at N256 per liter (recent landing price)...the marekters have to be allowed to sell it at any price between N300-400 per liter...to cover

1.Transport costs
2.Recoup their investments
3.Pay staff salaries and so on
4. Be able to still pay Dangote if the cost of refining one liter of petrol goes up.....because production costs are not static.
5.Pay for repairs, maintenance
6.Have enough profit left over.(because business people go into business to make money).


If the marketers are forced to, under this current subsidy regime...to sell fuel at N162 naira per liter...and government can only afford to pay them N40 per liter of fuel sold.(and that won't be possible because revenues from oil are at an all time low)..they would earn N202 naira per liter...meaning they would be running at a loss, and won't be able to pay Dangote for the fuel that he refines at N256 per liter.

Modified

1.Have to leave now...other things to do.
2.We wait for Dangote to tell us how much it would cost to refine one liter of fuel from his refinery...but based on experience, it won't be below N200 per liter IMO.

Modrov:


Not if the marketers themselves are allowed to sell the fuel at a price above the landing cost...enough to recoup their money, and cover the cost of transporting the fuel from refinery to station..

Let's see how it works...if Dangote is allowed to sell fuel at N256 per liter (recent landing price)...the marekters have to be allowed to sell it at any price between N300-400 per liter...to cover

1.Transport costs
2.Recoup their investments
3.Pay staff salaries and so on
4. Be able to still pay Dangote if the cost of refining one liter of petrol goes up.....because production costs are not static.
5.Pay for repairs, maintenance
6.Have enough profit left over.(because business people go into business to make money).


If the marketers are forced to, under this current subsidy regime...to sell fuel at N162 naira per liter...and government can only afford to pay them N40 per liter of fuel sold.(and that won't be possible because revenues from oil are at an all time low)..they would earn N202 naira per liter...meaning they would be running at a loss, and won't be able to pay Dangote for the fuel that he refines at N256 per liter.

Modified

1.Have to leave now...other things to do.
2.We wait for Dangote to tell us how much it would cost to refine one liter of fuel from his refinery...but based on experience, it won't be below N200 per liter IMO.

I'd love to continue this conversation, but truthfully my brother, you are making zero sense from all you have been saying. It is either you do not understand that most of my questions required a simple yes/no answer or na me no sabi ask questions.

Please relax now and in your spare time, read my questions again. Thank you

rex21:

I'd love to continue this conversation, but truthfully my brother, you are making zero sense from all you have been saying. It is either you do not understand that most of my questions required a simple yes/no answer or na me no sabi ask questions.

Please relax now and in your spare time, read my questions again. Thank you

I think you have made up your mind.

Do have a good day.

TechCraft:
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You will be paid One Million Naira

If you like to write articles and get paid for writing then this team/project is for you.

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Project Details : Content Writing For New and Experienced Content Writers

To signify your interest, send a message to 07054011454

Over a year of this and you never see five content writers up till now?

Stop the scam please

TechCraft:



Mind your business. Not minding personal business has killed many before you. Beware

Thanks for confirming my suspicion.

And thanks for threatening me too. That's lovely

Anyway may the Lord minister to you in the way that would benefit His glory

thesicilian:
This guy would easily have become the world's richest man by now if he was in another country.

Is this a joke?

Hamzatgodfirst:
Trading makes you think about manufacturing... You only think about manufacturing after making so much from trading

Exactly brother, who wouldn't want to be in control of the source?