Johnson5258:
Noted

Very unintelligent comment. Even if not saving forex, landing cost, more than 80% of chemicals use in Nigeria industrues would be cater for, employment and so on. Even if Nigeria is doing well, most of you will still annoying.

dominique:
Other than the employment opportunities it brings, there's nothing to be thrilled about this refinery. When cement was still being imported, the price was still manageable. In comes Dangote cement with locally sourced materials, prices of cement has since quadrupled if not more. I'm sure that's how it's going to be when this Dangote refinery becomes operational. That N300/L we don't want to spend on fuel at the moment, we might end up spending more than that as I'm sure government won't spend one Kobo to subsidize his fuel. Dangote enters a market and the prices of the commodity automatically inflates. His fuel won't be an exception

I beg to differ on your opening sentence. If the refinery starts production and Nigeria stops importing petroleum products, it would have a massive never been seen or heard effect on Nigeria's economy.

saboteurs are robbing their palms together as this project nears completion.

Very well noted.

Emir01:


Very unintelligent comment. Even if not saving forex, landing cost, more than 80% of chemicals use in Nigeria industrues would be cater for, employment and so on. Even if Nigeria is doing well, most of you will still annoying.

googlepikins:
My brother work there he said that refinery will be ready around 1st quarter of 2024. Plenty of work dey that complex.

And the paste of work is really slow cos the Indians and the Chinese contractors don't get along that much.
And they have serious theft issues there too.

Apparently some Nigerians in collaboration with Nigerian security agents are stealing installed cables.

I have heard of the theft issue as well.

dominique:
Other than the employment opportunities it brings, there's nothing to be thrilled about this refinery. When cement was still being imported, the price was still manageable. In comes Dangote cement with locally sourced materials, prices of cement has since quadrupled if not more. I'm sure that's how it's going to be when this Dangote refinery becomes operational. That N300/L we don't want to spend on fuel at the moment, we might end up spending more than that as I'm sure government won't spend one Kobo to subsidize his fuel. Dangote enters a market and the prices of the commodity automatically inflates. His fuel won't be an exception

The effect on the economy will add up. A nation of over 200 million shouldn't be dependent on much smaller nations to refine its crude

heniford2:
Monopol in play in Nigeria

400 Naria per litre loading before june

heniford2:
Monopol in play in Nigeria

Nobody stops you from building your own.

heniford2:
Monopol in play in Nigeria

Illiterate!

Where is monopoly here!

Okay if by then production starts u are going to give me 500k

Elsueno:
I bet 1 million naira this refinery would even struggle to begin operation at first quarter of 2023.....No be 9ja

dominique:
Other than the employment opportunities it brings, there's nothing to be thrilled about this refinery. When cement was still being imported, the price was still manageable. In comes Dangote cement with locally sourced materials, prices of cement has since quadrupled if not more. I'm sure that's how it's going to be when this Dangote refinery becomes operational. That N300/L we don't want to spend on fuel at the moment, we might end up spending more than that as I'm sure government won't spend one Kobo to subsidize his fuel. Dangote enters a market and the prices of the commodity automatically inflates. His fuel won't be an exception

price of everything has quadrupled. You want cement price to remain the same?

Damidave1124:
I hope it will reduce the price of PMS/Petrol?
If not, I don't see how this will have a positive effect on the common man

it will not reduce the price of pms but it will strengthen the naira.

googlepikins:
My brother work there he said that refinery will be ready around 1st quarter of 2024. Plenty of work dey that complex.

And the paste of work is really slow cos the Indians and the Chinese contractors don't get along that much.
And they have serious theft issues there too.

Apparently some Nigerians in collaboration with Nigerian security agents are stealing installed cables.

Buhari caused that again? Too bad.

TheDemola:
■Dangote refinery plans to process 540,000 barrels a day
■Refinery capacity to meet Nigeria’s domestic fuel need



https://www.bloomberg.com/news/articles/2022-01-22/giant-dangote-oil-refinery-to-begin-production-in-third-quarter

Why can’t Nigerians even think of convincing and voting this guy Dangote as president of the country. Afterall, he’s a success of his business, why not try and see if he can make a success outta Nigeria

Election don come again, all of a sudden it will begin operation.
Same thing they claimed before 2019 elections.

[quote author=googlepikins post=109631974]My brother work there he said that refinery will be ready around 1st quarter of 2024. Plenty of work dey that complex.

And the paste of work is really slow cos the Indians and the Chinese contractors don't get along that much.
And they have serious theft issues there too.

Apparently some Nigerians in collaboration with Nigerian security agents are stealing installed cables.

Pathetic. Very disturbingif this is true.

dominique:
Other than the employment opportunities it brings, there's nothing to be thrilled about this refinery. When cement was still being imported, the price was still manageable. In comes Dangote cement with locally sourced materials, prices of cement has since quadrupled if not more. I'm sure that's how it's going to be when this Dangote refinery becomes operational. That N300/L we don't want to spend on fuel at the moment, we might end up spending more than that as I'm sure government won't spend one Kobo to subsidize his fuel. Dangote enters a market and the prices of the commodity automatically inflates. His fuel won't be an exception

We will be importing cement for N3000 but exchange rate will not be less than N800 per dollar.

Cognitivereason:


Fuel is supposed to sell for N340 and above per litre if not for subsidies.. Since govt wanna remove subsidies by july...when dangote starts production he will sell fuel for N340 and above depending on oil prices

He is not inflating it as that is the international price

The landing cost of 340 includes the cost of transporting the crude out to europe for refining and transporting refined products back. Insurance and lots of duties will apply in different countries. A local refinery eliminates those costs.

dominique:
Other than the employment opportunities it brings, there's nothing to be thrilled about this refinery. When cement was still being imported, the price was still manageable. In comes Dangote cement with locally sourced materials, prices of cement has since quadrupled if not more. I'm sure that's how it's going to be when this Dangote refinery becomes operational. That N300/L we don't want to spend on fuel at the moment, we might end up spending more than that as I'm sure government won't spend one Kobo to subsidize his fuel. Dangote enters a market and the prices of the commodity automatically inflates. His fuel won't be an exception

At the end of the day, Dangote has to

1.Pay his workers industry level salaries..and his workers are Nigerians like you and me

2.Pay back the loans he took to build the refinery

3.Pay for refinery upgrades and maintenance....the plan is to increase capacity of the refinery in the next ten years after operation., among other things

And all that reflects in the prices.

Same thing for the cement industry.

If you want Dangote to charge low prices, either he

1.pays his workers slave wages

2.Skimps on paying back loans....

3.Skimps on maintenance, which leads to breakdown and which leads to the refinery not working.

Capitalism is a harsh mistress. But the problem is , people want to make money.

As for subsides, the oil price has been fluctuating wildly since 2014, and thus the revenue which we would have used to pay for subsides is not there. Government could tax everyone, but Nigerians don't want to pay taxes.,,or at least the kind of tax that would make us earn enough money

Let's be honest, once upon a time we paid cheap prices for fuel from 1973 in the name of subsidy. The refineries we had all broke down because in order to keep subsidy costs low, government stopped maintaining them properly and as when due.

venabili:


The landing cost of 340 includes the cost of transporting the crude out to europe for refining and transporting refined products back. Insurance and lots of duties will apply in different countries. A local refinery eliminates those costs.

Yeah, and Niger republic,who refines fuel at home, sells it for N346-50 equivalent.

There is the cost of workers salaries, and the loans he took to be repaid.

Either way, fuel is not going to cost below N200 or even below N300. Not if Dangote wants to make enough of a profit to keep his refinery running well.

Only thing government can do for him is allow him to buy crude to refine...in naira.

Cognitivereason:


Fuel is supposed to sell for N340 and above per litre if not for subsidies.. Since govt wanna remove subsidies by july...when dangote starts production he will sell fuel for N340 and above depending on oil prices

He is not inflating it as that is the international price

What kind of analysis is this? And who told you fuel is supposed to sell for #340? Do you have any idea of what makes up the cost?

If we refine fuel ourselves fuel shouldn't sell for more than #165.

Dangote refinery with whose money?
Don't let us be deceiving ourselves
There is more to Federal Government not ready to build any refinery as a Nigeria company
Dangote and Government are in the same train
Federal Government is using our money to inflict hardship on us.
We shall all see the outcome of the refinery when work begins there

#MarkMyWords

Johnrake69:


What kind of analysis is this? And who told you fuel is supposed to sell for #340? Do you have any idea of what makes up the cost?

If we refine fuel ourselves fuel shouldn't sell for more than #165.

Well, Dangote has to

1.Pay his workers industry level salaries

2.Pay back loans and such like

3.It also costs more to bring out crude in Nigeria than it does elsewhere in the world.(Insecurity, resource control, etc)

4.Transporting fuel from refinery to source is going to go up as the transport cost aspect of subsidy won't be paid.

5.Marketers too have to make profits

6.Refinery maintenance costs, insurance, expansion, and upgrades all add their own.


All in all, the man has to tell us how much it would cost him to refine one liter...but I heavily suspect it won't be below N250.

All that adds up.

Niger Republic has a refinery , and a source of crude oil...and sells petrol for N350 or more per liter.

RodgersAkpafu:

The simple reason for this is because production in Nigeria is very much expensive
Think of how much worse our exchange rates position would have been if we were still importing the huge cement demand needs of this country

Life is a trade off
You cant have it all...
If you want cheap stuff produced abroad
Dont complain when your forex is wrecked

Production in Nigeria is nothing like other countries as far as cement is concerned. A friend is an accountant in one of the cement factory. He told me first hand that cement can sell for #800 and Dangote and Bua will still make profit. Their cost of production is so low. They get limestone at #25 per ton. Pay slave wages at their factories.

ROI for cement internationally is 17%. But Dangote returns more than 40%. Because poor Nigerians are being ripped off by paying so high for cement.

dominique:
Other than the employment opportunities it brings, there's nothing to be thrilled about this refinery. When cement was still being imported, the price was still manageable. In comes Dangote cement with locally sourced materials, prices of cement has since quadrupled if not more. I'm sure that's how it's going to be when this Dangote refinery becomes operational. That N300/L we don't want to spend on fuel at the moment, we might end up spending more than that as I'm sure government won't spend one Kobo to subsidize his fuel. Dangote enters a market and the prices of the commodity automatically inflates. His fuel won't be an exception

Crude oil is different from cement.

googlepikins:
My brother work there he said that refinery will be ready around 1st quarter of 2024. Plenty of work dey that complex.

And the paste of work is really slow cos the Indians and the Chinese contractors don't get along that much.
And they have serious theft issues there too.

Apparently some Nigerians in collaboration with Nigerian security agents are stealing installed cables.

That's sad

I see
Is that why government is bent on increasing fuel pump price so the monopoly can make poverty in Nigeria unbearable

miraclea:
I see
Is that why government is bent on increasing fuel pump price so the monopoly can make poverty in Nigeria unbearable

What do you understand by the word “monopoly”?

I am certain you don’t know the meaning.

backbencher:


Well, Dangote has to

1.Pay his workers industry level salaries

2.Pay back loans and such like

3.It also costs more to bring out crude in Nigeria than it does elsewhere in the world.(Insecurity, resource control, etc)

4.Transporting fuel from refinery to source is going to go up as the transport cost aspect of subsidy won't be paid.

5.Marketers too have to make profits

6.Refinery maintenance costs, insurance, expansion, and upgrades all add their own.


All in all, the man has to tell us how much it would cost him to refine one liter...but I heavily suspect it won't be below N250.

All that adds up.

Niger Republic has a refinery , and a source of crude oil...and sells petrol for N350 or more per liter.

You can't compare Niger republic to the Nigerian market. Stop making up excuses for Dangote. He's killing the average Nigerian with his business practices.

If not for Monopoly which he enjoys. Cement can sell for less than #1500. The Chinese manufacturers import almost everything, pay better wages and still sell cheaper than Dangote.

Johnrake69:


You can't compare Niger republic to the Nigerian market. Stop making up excuses for Dangote. He's killing the average Nigerian with his business practices.

If not for Monopoly which he enjoys. Cement can sell for less than #1500. The Chinese manufacturers import almost everything, pay better wages and still sell cheaper than Dangote.

Well, once subsidy goes, I expect there to be more investors (there are 4 other refineries on ground, and 20 other on the drawing board, and BUA is building a refinery...that refines everything but petrol)

As for cement, Dangote does not enjoy a monopoly. BUA(again) Lafarge, Ibeto and one other company are there manufacturing cement (and I think Lafrarge is better than Dangote...)

It costs money to do business in this country. Insecurity, theft, corruption, stealing, bad government , etc all add to the cost.

Then the fact is, refineries are expensive to run. It is one thing to build it, but keep it well maintaned, expansion costs (Daogte has plans for expanding the thing ) and so on are there.

I'm not defending Dangote, I don't even hold much affection for the man. But I am attacking the subsidy regimen which is why we are reliant on imported fuel, and have bad refinereis in the first place.

backbencher:


Well, once subsidy goes, I expect there to be more investors (there are 4 other refineries on ground, and 20 other on the drawing board, and BUA is building a refinery...that refines everything but petrol)

As for cement, Dangote does not enjoy a monopoly. BUA(again) Lafarge, Ibeto and one other company are there manufacturing cement (and I think Lafrarge is better than Dangote...)

It costs money to do business in this country. Insecurity, theft, corruption, stealing, bad government , etc all add to the cost.

Then the fact is, refineries are expensive to run. It is one thing to build it, but keep it well maintaned, expansion costs (Daogte has plans for expanding the thing ) and so on are there.

I'm not defending Dangote, I don't even hold much affection for the man. But I am attacking the subsidy regimen which is why we are reliant on imported fuel, and have bad refinereis in the first place.

Don't be decieved subsidy is not the problem of Nigeria. Food is cheaper in America than in Nigeria because of subsidy the American government pays to farmers which stands at over $20 billion annually.

The same America speaking against subsidy. The goal of any sane society is to have a stable economy where average citizen can afford basic needs doing any job he or she finds.

Fuel drives our economy that's the reason for the subsidy. We're here today because of leadership failure nothing else.

Johnrake69:


Don't be decieved subsidy is not the problem of Nigeria. Food is cheaper in America than in Nigeria because of subsidy the American government pays to farmers which stands at over $20 billion annually.

The same America speaking against subsidy. The goal of any sane society is to have a stable economy where average citizen can afford basic needs doing any job he or she finds.

Fuel drives our economy that's the reason for the subsidy. We're here today because of leadership failure nothing else.

Americans also outproduce food more than Nigerians, which is another reason why food is cheap.

Plus, there really isn't a problem with subsiding fuel. The problem is that the source of money for subsidizing fuel is crude oil revenue, whose prices are

1.Never at the level we want it to be

2.Also severely fluctuate.

And because of the fluctuation in prices for fuel, we have to borrow money. It makes it difficult to pay subsidy, whose cost always rises because the cost of producing fuel is not static.

Meanwhile, tax revenues in Nigeria are poor...our tax to gdp ratio is 6.4%, and less than 30 percent of Nigerians pay income taxes to state and federal governments...and really we should be funding subsides from tax revenue, not oil money.