iamoyindamola:
It's a good thing to have a refinery, the question we have is will it reduce our cost of production and reduce the price of petrol for the final consumers
That's the koko
Una too they hurry do copy and paste oga oo

hopefulLandlord:


If we're to look at effect of other things Dangote took over in the past like Cement etc then it's certain it won't reduce cost of production, neither would it reduce price of PMS and other petroleum products the refinery would be churning out, it would rather increase exponentially the prices of petroleum products but it would most likely be gradual and Nigerians would be poorer for it.

iamoyindamola:
It's a good thing to have a refinery, the question we have is will it reduce our cost of production and reduce the price of petrol for the final consumers
That's the koko
Una too they hurry do copy and paste oga oo

larride:


Of course not. There’s a reason why NNPC has a 20% stake in the business and they are the one that will be supplying the refinery crude.

larride:


Yes it will. It will first eliminate landing and storage cost because Dangote refinery has over 1.4bn storage facilities.

izzou:


It would

The decrease may be little, but it would.

August no far again, but i am sensing we may experience some form of scarcity before then; especially when there would be a transition from imported fuel to that of Dangote

chrisooblog:
So now this is the issue Nigeria spends a big chunk of FX paying for the importation of petroleum products. Logical with that gone you won't have to waste scarce dollars on fuel imports meaning stronger currency. Dangote will also be exporting meaning more fx entering the economy. The multiplier effect can of this project can only be imagined from plastics, road construction and even power/water supply.

Will the price be low? it depends cos I don't know at what price NNPC will sell crude to Dangote plus if he decides to import the crude then prices will reflect the cost of the crude oil he brought in plus cost of production added on top but experts say it's unlikely the price will be low.

hopefulLandlord:


If we're to look at effect of other things Dangote took over in the past and present like Cement etc then it's certain it won't reduce cost of production, neither would it reduce price of PMS and other petroleum products the refinery would be churning out, it would rather increase exponentially the prices of petroleum products but it would most likely be gradual and Nigerians would be poorer for it.

hopefulLandlord:


If we're to look at effect of other things Dangote took over in the past and present like Cement etc then it's certain it won't reduce cost of production, neither would it reduce price of PMS and other petroleum products the refinery would be churning out, it would rather increase exponentially the prices of petroleum products but it would most likely be gradual and Nigerians would be poorer for it.

iamoyindamola:

You know what I am thinking?
So long we still have these marketers our problem on this petrol is yet to be solved

iamoyindamola:

I have my fear in this too
Dangote products are normally expensive or on par with other brands in price

chrisooblog:
You're missing the bigger picture the amount of FX that will be saved and added to our economy will seriously boost our reserves and bring the Naira/$ exchange rate lower which you can only imagine how that will have a positive effective on manufacturing cos you won't have to so much unlike now to bring in your raw materials.

chrisooblog:
If you're talking about cement is it cheaper to import it? If so why hasn't anyone done it? Any if his cement is over priced why hasn't anyone produced their own affordable cement?

chrisooblog:
If you're talking about cement is it cheaper to import it? If so why hasn't anyone done it? Any if his cement is over priced why hasn't anyone produced their own affordable cement?

izzou:


You'll have to throw it open to find out.

I think the cement sector is kinda locked. They are not giving room for more competitors.

Dangote, Lafarge and Bua just dey do as dem like.

When they opened the floor in the Flour milling, Dangote sold his Flour mills and ran away with is slippers on his hands.

If you open the gates of the cement industry completely, you may find out it is cheaper

hopefulLandlord:


forgive me but I can't seem to figure out if you're agreeing with me or not

chrisooblog:
But when you say open the gates do you mean allowing cement imports?

For instance do you know that one of the reasons Dangote cement is cheaper in other African countries is because they are competing with Chinese imports.

Dangote is not perfect but I still give him his due.

Lafarge has been operating in Nigeria for years but never thought to set up a local cement plant until Dangote came around.

Same bs MTN was trying to pull in the telecom industry before Glo came and helped reset their brain.

You just asked if it would be cheaper if it was open to imports naa

I give Dangote his accolades too. I am not criticising him. He has helped this country, but then, it is what it is.

Basically every business he triumphs has no competition. The ones he met competition, he left

He sold his flour mills
He had noodles. He sold it to Multipro
He had Bottled water (Mowa). He abandoned it.

Like i said, the cement sector is locked. When it starts to get a lot of investors, you may eventually find out it is cheaper

izzou:


You'll have to throw it open to find out.

I think the cement sector is kinda locked. They are not giving room for more competitors.

Dangote, Lafarge and Bua just dey do as dem like.

When they opened the floor in the Flour milling, Dangote sold his Flour mills and ran away with is slippers on his hands.

If you open the gates of the cement industry completely, you may find out it is cheaper

iamoyindamola:

I have my fear in this too
Dangote products are normally expensive or on par with other brands in price

iamoyindamola:

I read about something like this too

izzou:


You just asked if it would be cheaper if it was open to imports naa

I give Dangote his accolades too. I am not criticising him. He has helped this country, but then, it is what it is.

Basically every business he triumphs has no competition. The ones he met competition, he left

He sold his flour mills
He had noodles. He sold it to Multipro
He had Bottled water (Mowa). He abandoned it.

Like i said, the cement sector is locked. When it starts to get a lot of investors, you may eventually find out it is cheaper

izzou:


I did my IT in Dangote Flour Mills and at that time, he had already sold it to Tiger Foods of South Africa

I don't know if the mill is existing now

But we still have other mills that are smaller than him, littered all over Apapa

larride:


Will it surprise you if I tell you that it’s middlemen that makes Dangote cement expensive compared to other products?

Dangote cement retails at almost the same price with all other cements but because Dangote brand is popular, those who are buying from factory and selling to retailers are the one making the cement expensive.

larride:


All these businesses you mentioned are business he ventured into, didn’t succeed and he exited.

How many flour mills company do we have in the country?

Even the noodles, Nigerians call all noodles indomie. That’s to tell you how huge Indomie was.

Dangote Spaghetti is still one of the most sold Spaghetti in the country till date but yet he couldn’t cut it in the noodles business.

It’s not all business that one can compete in, no matter how big the brand is.

larride:


All those other small small mills, how many people know them? 😂

What’s percentage of the market share do they command compared to Honeywell?

Even as big as Honeywell is, did their noodles stand indomie?

izzou:


We have more Flour mills than cement mills in the country

I can't remember when i saw Dangote Spaghetti last. Maybe you should stroll to the market and see the varieties we have here, made in Nigeria.

The point is, the business he is excelling in has less competition. The ones he exited had more competition

iamoyindamola:

The only 2 cement companies in Lagos are lafarge and dangote,bua is abuja
By the middle men are you saying the wholesalers

larride:


Yes. The margin the wholesalers put on those cements is almost 50%.

There’s this Dangote interview I watched where he lamented that the retailers are making more profits than he is making on each bags

larride:


Yes. The margin the wholesalers put on those cements is almost 50%.

There’s this Dangote interview I watched where he lamented that the retailers are making more profits than he is making on each bags

larride:


Yes. The margin the wholesalers put on those cements is almost 50%.

There’s this Dangote interview I watched where he lamented that the retailers are making more profits than he is making on each bags