The negative impact of Crude Oil importation by Dangote Refinery from United States (U.S) on the Dwindling value of naira and Nigeria economy.

The recent announcement by Bloomberg that
Dangote group are patronizing U.S Oil firms for Crude oil while shunning the Nigerian local market for oil is a worrisome business move with it implications on the economy of Nigeria.

This maybe as a results of the EFCC visit to the Head office of the group in Lagos and investigating the alleged under table Foreign Exchange deal between the embattled former Central Bank of Nigeria Governor Godwin Emefiele and Business man Aliko Dangote worth $ billion of dollars.

Nigeria, one of the largest producer of crude oil, a major exporter of crude oil with it major revenue generated from the sale of crude oil.

Bloomberg reported that Trafigura Group has sold 2 million barrels of WTI Midland to the Dangote refinery for delivery by the end of February. This marks the first time the refinery buying non-Nigerian crude.

Many Nigerians are hoping that the operation of the Dangote refinery will help reduce the current price of PMS from #650 to a reasonable amount, but the recent move and intention of the group is signaling otherwise.

By: Hon. Prince Samuel Adesegun Egunjobi
https://twitter.com/SamuelegunjobiA/status/1752258508139970828?t=WqGhkO4XWJNImfBlhKEbSw&s=19

Erm, Dangote bought his first crude oil from Nigeria...

It's like people cannot see clearly.

(LOL, watch as people come here to call me APC supporter...forgetting that Dangote bought crude from NIgeria).

At the end, well, let us see. We have to increase crude production at the end of the day though. WHich means crude theft too also has to end from the big men and the small boys.

Many Nigerians are hoping that the operation of the Dangote refinery will help reduce the current price of PMS from #650 to a reasonable amount, but the recent move and intention of the group is signaling otherwise. Nah there we dey go now🏃

Some people still trust Apc Government

Una go wake up late

nairalanda1:
Erm, Dangote bought his first crude oil from Nigeria...

It's like people cannot see clearly.

(LOL, watch as people come here to call me APC supporter...forgetting that Dangote bought crude from NIgeria).

At the end, well, let us see. We have to increase crude production at the end of the day though. WHich means crude theft too also has to end from the big men and the small boys.

just listen to yourself

He bought crude oil first from Nigerian, so he can buy the rest from US abi, with scarce dollar in circulation, do you understand the implication it has on the naira

Of what benefit is it having the biggest refinery when crude oil will still be imported from abroad spending dollar, just for him yo refine and sell in naira, how then would price of fuel reduce in Nigeria

Was it not better for marketers to continue importing refined fuels 😏😏

YinkaOlusesi16:
Many Nigerians are hoping that the operation of the Dangote refinery will help reduce the current price of PMS from #650 to a reasonable amount, but the recent move and intention of the group is signaling otherwise. Nah there we dey go now🏃

If you were dangote, would you reduce your prices to N150 per liter so that you would help poor people, or would you sell your fuel at a price that helps you, yourself, your workers, and your shareholders and your maintenance and upgrade costs?

NIger republic has a refinery that meets all their needs, and leaves enough for export. They even source the crude at home...and the price is over N1000 per liter. And they are poorer than us.

You guys, the day you wake up and realize that the businessman,,,,any businessman is not there to help you, but there to help themselves, you will get peace of mind.

Gadafii:
just listen to yourself

He bought crude oil first from Nigerian, so he can buy the rest from US abi, with scarce dollar in circulation, do you understand the implication it has on the naira

Of what benefit is it having the biggest refinery when crude oil will still be imported from abroad spending dollar, just for him yo refine and sell in naira, how then would price of fuel reduce in Nigeria

Was it not better for marketers to continue importing refined fuels 😏😏

LOL...you Nigerians do not know the meaning of true capitalism yet.

You all have been so sheltered, that you want your fuel at N100 per liter.

Well, at the end, fuel must be sold at a profit. If you people had listened in 1993, and 2011, by now we would have long since been over the worst.

Better enjoy your high fuel price. Next time, you will learn that in business, once government sets prices, wahala go start. We are expereienceing the end result of decades of government setting prices....

I pity this country.
How Nigerians have been deceived over the years.
Dangote is a private business man out to make money.

Govt should've broken his monopoly on certain items like cement and sugar a long time ago.
The man is of no good to Nigeria.

nairalanda1:
Erm, Dangote bought his first crude oil from Nigeria...

It's like people cannot see clearly.

(LOL, watch as people come here to call me APC supporter...forgetting that Dangote bought crude from NIgeria).

At the end, well, let us see. We have to increase crude production at the end of the day though. WHich means crude theft too also has to end from the big men and the small boys.

You are running when no one is pursuing you.

Everyone knows that Dangote got its first, second, third batch of crudeoil from Nigeria.

jmoore:

You are running when no one is pursuing you.

Everyone knows that Dangote got its first, second, third batch of crudeoil from Nigeria.

Yes, and that is what I was telling the person that posted the comment originally...because they implied dangote was buying from us only.

I was not talking to you, or responding to you.

Why would he even import something we have. The Naira will get to 2000 per dollar if we continue like this

Some of us are just blowing hot unnecessarily.

Firstly, Nigeria has securitized most of our daily production that it may be difficult sustaining about 650k barrels to Dangote every day out of our daily 1.2 million barrels (that is if Ijaw boys don't go into another frenzy).

Dangote in his wisdom already foresaw this and made sure the refinery can process other crude oil grades hence the recourse to America.

One thing we must also take into cognizance is that refineries done go off for any reason except TAM. The politics of sourcing Nigeria crude which he is also buying with dollars, can be overbearing hence he is buying from sources where he will have less hassles to deal with.

The only way the Dangote Refinery would have reduced the price of petrol in Nigeria is if Nigeria rockets its crude oil production capacity to satisfy local refineries and have enough for export.

During the last election campaigns, Peter Obi was all over the place screaming that Nigeria doesn't even meet her OPEC export quota.

Tinubu won the election, instead of making efforts to even surpass this production threshold and supply Dangote Refinery, he's busy doing nothing. Now, Dangote wants to import from the US with the same USD that is very scarce in Nigeria.

The biggest tragedy that can befall a country is not having clueless leaders but having a bunch of lunatics who brazenly defend the leaders' incompetence.

Gadafii:
just listen to yourself

He bought crude oil first from Nigerian, so he can buy the rest from US abi, with scarce dollar in circulation, do you understand the implication it has on the naira

Of what benefit is it having the biggest refinery when crude oil will still be imported from abroad spending dollar, just for him yo refine and sell in naira, how then would price of fuel reduce in Nigeria

Was it not better for marketers to continue importing refined fuels 😏😏

Why re u quoting a brainless fowl?

Who to blame dangote or government? Well i think government, They are still exporting instead of selling to dangote and sell the rest (the 600k from 1.2m) maybe they make more money doing that (exporting) or they just hate nigeria. Dangote buying from outside will incure Tfare which he will consider when selling but buying from inside will remove that percentage and will also reduce fuel price, if not much at least a little. So i put the blame on government they should do more to sell to dangote because the man will probably not close his com over lack of crude