I just dey laugh una ... We wey dey 2022 dey buy fuel for #200/L ...... Una no go ever get sense... Lol

heniford2:
Monopol in play in Nigeria

you complain to much. Other people have licences to build refineries

backbencher:


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.

Corruption eats more than 50% of our commonwealth. Nothing will make sense until we take governance seriously. And it's in the interest of the working class to clamour for real reforms that will bring about a stable economy. This is in the interest of every one. A friend's colleague at shell was kidnapped and killed last month. #5M was demanded which was paid but he couldn't survive the torture, died few days after he was released.

An average Nigerian's mindset is to focus on your hustle and forget about what's happening in the country. That needs to change because you can achieve everything on your own and get killed like a stray dog just like former Air chief marshal Alex Badeh was killed.

Nigeria need a people's constitution and not the fraud called the 1999 constitution. I believe this should be the agitation.

Gerara here

sulaak:


BUA is building nothing and the modular refinery is a none starter.

You. Can also build too
I wish I can too if all of us build it’s a nice investment

I still wonder which Economics book our youth read they don’t even know who a monopoly is
Cement is produced by 5 different companies in Nigeria

So thr cost of building thr refinery is approximately what dangote's worth

TheDemola:


BUA also building one in Akwa Ibom now and the other modular refineries

Ok, Hausa monopoly then!

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 determinant for price is the production cost which might be much more or less. So you cannot just call an arbitrary price

I am tired of this audio opening of Dangote refinery!
Open if you will open and stop disturbing us with this rubbish that you keep postponing!

No wonder.

This is the reason they are badly struggling to remove subsidy. Wicked idiots.

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

May Allah make it easy for Nigerians to stop using petroleum and get use of electric vehicles, because if dangote take over control of fuel with this his refinery then we will be buying fuel at#1000 or more than that

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

There's only intl price for crude.

No one tells you how to sell the byproducts...not even OPEC.

There's no Landing cost anymore...so Dangote should actually sell for far lesser than N340

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.

They should sack all the security personnel

Johnrake69:


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.

The person telling you that is not telling you the complete truth
Do you know how much they pay to settle local boys, pay for their trucks to have passage and other "extortionist" taxes that they pay on the road and in the communities?
Cost of capital is also much higher in Nigeria
Though in recent years he has been pivoting to foreign sourced capital which is somewhat cheaper.

All I am saying is that the overall environment is hostile for production

https://www.youtube.com/watch?v=vhKMMInDJNM

let this refinery start to work .so that prices of fuel, kerosene, disel can be cheap

If the production date is certain, perhaps we can always wait to remove petrol subsidy by then.

Why is the government in a hurry to inflict hardship on its citizens with the supposed paltry 5k, to 'cushion' the effect of the subsidy, rather than wait till 3rd quarter?

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.

You are saying the whole truth

obailala:
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 kr heard effect on Nigeria's economy.

what is the massive never been seen kr heard effect on Nigeria's economy that it will have on the economy?

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

Hope you won't complain when local man sells yam at international price?

Make we hear word!

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

The way it reduced the price of cement ba

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 fuel isn't what we look forward to following the operation of the refinery
It's the value of naira that will increase cos of the amount of money we spend on importation of fuel at the moment

RodgersAkpafu:


The person telling you that is not telling you the complete truth
Do you know how much they pay to settle local boys, pay for their trucks to have passage and other "extortionist" taxes that they pay on the road and in the communities?
Cost of capital is also much higher in Nigeria
Though in recent years he has been pivoting to foreign sourced capital which is somewhat cheaper.

All I am saying is that the overall environment is hostile for production

Hehehehehehehe... How much Please? Try extort Dangote make we see. You wan dey argue wetin? Dangote and Bua pays #25 per ton for limestone.

I have done business moving with trailers. Them no born any tout or security operatives for road to block Dangote truck.

If you talk about interest rate and cost of capital that one no touch Dangote. He gets all the good rates that can only be a dream for an entrepreneur in Nigeria. Dangote between 2010 and 2015 made over #1Trillion in profit and paid only #12Billion in tax because of pioneer status they kept granting him.

heniford2:
Monopol in play in Nigeria

This talk is becoming very foolish, name one part of the economy where dangote has monopoly.

No be Dangote say make your family no hustle.

heniford2:
Monopol in play in Nigeria

Allergic to development.

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.

Lol...ur getting it all wrong...
The only benefit of refining fuel ourselves is that it get to save us Forex...
It doesn't and can never equate to a cheaper price...Brent oil is selling for above $80 ..if a company buys it..there is a particular cost they add to it (cost of refining) and they add their profit margin...by the time they begin to resell the byproduct.. In this case...Petrol...they should sell it for around $1...
If u check almost every African and Asia countries the cost of a litre of petrol is around $0.9 to $1..for a litre...
Now convert $1 to naira and see the price..
.
The only way fuel can be cheaper if subsidies are removed is for CBN to reverse dollar rate to less than N150 for a dollar..
Or they sell crude to Dangote at a subsidized rate which goes against the whole idea of deregulation and subsidies removal

MyExpression:


There's only intl price for crude.

No one tells you how to sell the byproducts...not even OPEC.

There's no Landing cost anymore...so Dangote should actually sell for far lesser than N340

No one needs to tell any one how to sell by products...
It obvious that if oil is selling for over $70...buy the time you factor in ur of refining it and taking ur profit margin..fuel should sell for around $1..
Make ur simple research...most if not all African and Asia countries sell fuel for around $1..
Now convert $1 to naira..

If OPEC increases oil price to $100...then fuel should cost $1.2 or so...
OPEC indirectly determines the price of fuel by the determining the price of the raw material (crude)...


Landing cost means the cost of the fuel itself and the cost of transporting it...if NNPC claims to buy fuel for around N340..then transport can't be more than $0.8 for a litre...so we only save a few cents for transportation.. Fuel will still be around $0.8 to $1 in Nigeria once u remove subsidies.. And that is the same price in Ghana, Togo, SA...U mention any country that don't subsidized fuel u will see it around $1..

$1=N414

Last time I checked Governors predicted fuel to sell for above N400...it obvious they were not blabbing but bringing in simple analysis to play

jackcanfield:
Okay Alhaji 3rd Quarter is fair, but safety is also important, so don't rush ... the most important thing is that by the end of 2022 we can all say Nigeria have a functioning Refinery and Petrochemical complex ready to serve the world and attract more LDI and FDI.

Sir.. it a matter of Nigerian now have a refinery in Nigeria and what we will be talking about very soon is the cost of refining the crude not cost of importation... "The 540,000 will be meeting or demands" not saying he will bring down the price of Petro. Considering HE is a BUSINESSMAN.

sulaak:


BUA is building nothing and the modular refinery is a none starter.

Really?