Many Nigerians have expressed indignation over the Dangote Refinery’s importation of US crude oil.

According to respected economic publication, Ventures Africa,

“The Dangote refinery’s location in Nigeria does not mean that Nigeria will be the only customer or supplier of the refinery. It just means Nigeria should be a priority customer/supplier. Saudi Aramco, a state-owned oil company in Saudi Arabia, exemplifies the approach.

The company runs five refineries. Three prioritize domestic needs, using locally sourced crude. Importing crude from other sources, such as the US and Saudi Arabia, allows the refinery to optimize its profitability and flexibility, as it could adapt to the market conditions and demand.

“What is also interesting is that because the US, despite being the world’s largest producer of crude oil, still often has to import petrol, it is very possible that in the future, Dangote Refinery will export petrol to the US in the same way Dangote Fertilizer is currently exporting Urea to the US, ” commented Tolu Ogunlesi via a post on X (formerly Twitter).

Nevertheless, it is no surprise that people are concerned. The refinery has generated a lot of expectations, both realistic and unrealistic, before its launch due to its potential impact on Nigeria’s economy.

However, it appears Dangote’s refinery, as one of the biggest in the world, has a capacity that Nigeria alone cannot utilize.”

https://venturesafrica.com/why-is-the-dangote-refinery-importing-crude-from-the-us/

Hopefully there will be more reasonable analysis of the Dangote operations.

Dangote can buy crude oil from wherever he wants.

This country needs help

Comparisons.

Always quick to compare negatives but never compared the positives the citizens of those nations benefit from their governments. Na so person Dey compare fufu sold for £1 in UK to fufu sold for N200 naira here.

You made no sense. So you're now comparing Nigeria, which hitherto had no single functional refinery serving her local market with Saudi, which is a top crude oil producer and exporter of refined petroleum products. Why are black people like this now? Nigeria, a country of hundreds of millions has not been able to refine a litre of crude oul from its territory in decades, now a private company supposedly sets up a refining plant, only to still source raw material from America? In other words, instead of selling refined crude from Nigeria, it is practically enriching the most powerful nation on earth with the little earning that could have come to this country. What an idiotic move. A third world country which is basically a raw materia warehouse to the world importing a raw material it has for a factory built with western technology despite having the same raw material in its backyard. Something is seriously wrong with black people. No wonder the worst of us somehow find their way to the top.

With this development he may try to sell the end product in dollar

We are very good at copying and pasting negative and evil things.

Can't we copy the SOCIAL security and safety net Programes of Saudi?

No wonder the country is dying and millions are totally hopeless. Imagine this one trying to justify why Dangote is importing crude oil from the United States?!

This country really deserve to be where it is now.

Spit!

EbinPawaGovt:
You made no sense. So you're now comparing Nigeria, which hitherto had no single functional refinery serving her local market with Saudi, which is a top crude oil producer and exporter of refined petroleum products. Why are black people like this now? Nigeria, a country of hundreds of millions has not been able to refine a litre of crude oul from its territory in decades, now a private company supposedly sets up a refining plant, only to still source raw material from America? In other words, instead of selling refined crude from Nigeria, it is practically enriching the most powerful nation on earth with the little earning that could have come to this country. What an idiotic move. A third world country which is basically a raw materia warehouse to the world importing a raw material it has for a factory built with western technology despite having the same raw material in its backyard. Something is seriously wrong with black people. No wonder the worst of us somehow find their way to the top.

Emotional nonsense.

Dangote is a private company operating in a capitalist economy.

He is not Nelson Mandela or Gani Fawehinmi, or Chairman Mao.

He is operating a business with shareholders and stakeholders invested in its profitability.

The 20 billion dollar refinery receives Nigerian crude, as much as can be supplied to it.

They don’t reject Nigerian crude.

They just have extra capacity, which, as a serious company, they are obligated to utilise.

If you owned the refinery, you would do the same, or quickly be out of business.

This is next level international capitalism being operated by Dangote.

This is what multinational conglomerates do.

There is no sentiment involved.

Scam refinery that was built with Nigeria 's money indirectly


Low/no tax
Direct FX price
Low interest rate
Loan as easy as nothing to pay back
Ever ready politicians money as mobilisation fund
Ever gullible nigerians as smoke screen

Blackfire:
Scam refinery that was built with Nigeria 's money indirectly


Low/no tax
Direct FX price
Low interest rate
Loan as easy as nothing to pay back
Ever ready politicians money as mobilisation fund
Ever gullible nigerians as smoke screen

Illiterate garbage.

EbinPawaGovt:
You made no sense. So you're now comparing Nigeria, which hitherto had no single functional refinery serving her local market with Saudi, which is a top crude oil producer and exporter of refined petroleum products. Why are black people like this now? Nigeria, a country of hundreds of millions has not been able to refine a litre of crude oul from its territory in decades, now a private company supposedly sets up a refining plant, only to still source raw material from America? In other words, instead of selling refined crude from Nigeria, it is practically enriching the most powerful nation on earth with the little earning that could have come to this country. What an idiotic move. A third world country which is basically a raw materia warehouse to the world importing a raw material it has for a factory built with western technology despite having the same raw material in its backyard. Something is seriously wrong with black people. No wonder the worst of us somehow find their way to the top.

This your ignorance deep ohhh.
You even added confidence to it

Dangote needs a feedstock of 6m barrels of crude oil in other to produce, how much is Nigeria making available in total,even if you Dangote every drop of crude (officially) drilled we still can't meet up with his demand.
So let me ask your ignorant skull, should Dangote halt his business because Nigeria is unable to provide the required quantity?

If we are to release all available crude to Dangote, which one will be used to service the loans collected by Buhari with the agreement to be serviced with crude oil.
It is disheartening to see Nigerians like you remain so ignorant on basic things like this. Worse its you the ignorant lots who open your mouth the widest

They will tell you half stories, but they will not tell you the part that Saudi owns the largest refinary in North America among others. They own retail and distribution business ie gas stations too. I doubt dangote refinary owns refinaries in the US, So why the comparison of Saudi buying oil from the US? Do you hear saudi ships the oil to Saudi Arabia to refine?

nedekid:
They will tell you half stories, but they will not tell you the part that Saudi owns the largest refinary in North America among others. They own retail and distribution business ie gas stations too. I doubt dangote refinary owns refinaries in the US, So why the comparison of Saudi buying oil from the US? Do you hear Saudi ships the oil to Saudi Arabia to refine?

Yes they do!

They never compare the good in those countries to Nigeria

Sheuns:
Comparisons.

Always quick to compare negatives but never compared the positives the citizens of those nations benefit from their governments. Na so person Dey compare fufu sold for £1 in UK to fufu sold for N200 naira here.

you dey mind fallen demons..extremely wicked, heartless, lying Set of creatures..

..comparing completed with an uncompleted refinery

Tellmeastory:


Illiterate garbage.

Cc:Backfire.

aariwa:
They never compare the good in those countries to Nigeria

A company like Dangote which is acting as an international conglomerate of repute, with international customers on its client list, is very good for Nigeria.

It shows we’re a mature, emerging capitalist economy similar to the likes of the United States, Japan, Canada, and other nations.

This is the type of education that some need.

Tellmeastory:


Emotional nonsense.

Dangote is a private company operating in a capitalist economy.

He is not Nelson Mandela or Gani Fawehinmi, or Chairman Mao.

He is operating a business with shareholders and stakeholders invested in its profitability.

The 20 billion dollar refinery receives Nigerian crude, as much as can be supplied to it.

They don’t reject Nigerian crude.

They just have extra capacity, which, as a serious company, they are obligated to utilise.

If you owned the refinery, you would do the same, or quickly be out of business.

Cc:ebinpawagovt.

thisisit:
We are very good at copying and pasting negative and evil things.

Can't we copy the SOCIAL security and safety net Programes of Saudi?

no that one cannot work here, our system is no yet developed to that extent or they will tell you Nigeria is a poor nation which doesn't have adequate resources for that
But when it comes to wastages they will have the resources for that

most people complainin dont even understand economics....

the end product is important and not the raw materials....

we know who they are complainin always but when we say something mods will delete our comments or ban us....

btw....watch the video where that warehouse was looted in abuja....
did you guys noticed the accent of the people around....??

Tellmeastory:


Illiterate garbage.

Uneducated illiterate

Tellmeastory:


A company like Dangote which is acting as an international conglomerate of repute, with international customers on its client list, is very good for Nigeria.

It shows we’re a mature, emerging capitalist economy similar to the likes of the United States, Japan, Canada, and other nations.

lol

It's only illiterates that think Dangote can't import crude oil because Nigeria produces crude. Dangote is a capitalist and his oil traders would look at for the best deals.

Aside Venezuela, Saudi, and Iran, Canada has the 4th largest oil reserve in the world and still imports crude oil from the US.

Nyamiriflathed:
It's only illiterates that think Dangote can't import crude oil because Nigeria produces crude. Dangote is a capitalist and his oil traders would look at for the best deals.

Aside Venezuela, Saudi, and Iran, Canada has the 4th largest oil reserve in the world and still imports crude oil from the US.

Honestly bro, the level of intelligence on this forum leaves a lot to be desired.

*Why is Dangote Refinery importing crude oil when it has yet to refine a liter of local crude oil from Nigeria? A Case Of Misguided Profiteering Or Sabotage By NNPC ?*

I was stunned to read in the newspapers that Dangote Refinery, which has barely just commenced operations, is already importing crude oil from abroad even when it has not refined a drop of petrol from our locally produced crude oil.

What's going on here? So, we continue to export our locally produced crude oil, but our own local refineries are importing crude oil from abroad? Somebody help me out. When did we move from a Fadeyi economy being managed by Ikoyi economists, to a full-blown Voodoo economy where nothing makes logical sense again?

I know that before those of us in Fadeyi can even shout ‘foul!’ to this development, our Ikoyi economists and private sector economic apologists will roll out their PowerPoint slides and ‘explain’ to us in the big English they learned from Harvard why nothing is wrong with a ‘private company’ importing its raw materials from abroad.

Well, since I am not an economist, I don't know if it is unusual or not to import crude oil in a country with the biggest production of crude oil in Africa and which exports all its crude oil, but I must say that I am very confused about this development.

In the first place, I thought the problem we all were complaining about before was our lack of local refineries to refine our own crude oil locally, which forced us to keep exporting it only to buy back finished materials from foreign markets at 10X and 20X the cost? I thought this ‘Esau Approach’ to economic management is how we got into this mess in the first place.

My more educated Ikoyi economists can correct me if I am wrong, but I had also assumed that the whole rationale behind building refineries and granting people like Dangote significant foreign exchange concessions (most of which they round-trip anyway) was to enable him to quickly bring his local refinery online to refine *our* crude oil so we can then get finished petrol and other byproducts from crude oil at a significantly cheaper price?

1. So I must call out our Ikoyi-minded economic Siamese twins of Wale Edun and Dr. Cardoso as well as Mr. Heineken Loquobiri and Mrs. Ekpo Ministry of Natural Resources and ask them what’s going on here? What are you all not telling us? Is it that we really don’t have any crude oil for Dangote refinery to refine because our government has mortgaged our crude oil reserves for the next 10 years to borrow money for their largely ineffective “borrow and dump” strategy to deal with galloping inflation and ever-rising rates of exchange of the Dollar to our local Naira?

2. Or could this development of our biggest refinery importing crude oil from abroad in an economy with millions of barrels of locally produced crude oil daily, be a more sinister sabotage of our local industrialists by the NNPC refusing to sell crude oil to Dangote in a most disgusting political power play if rumors on the streets of Fadeyi could be believed?

Since I am not in government, I am not going to presume to know the real facts from fiction, but in a Fadeyi economy where most rumors are often more accurate than officially stated positions, maybe it’s time we start dragging our leaders to explain to us what’s really going on here.

So here are our questions to the coordinator of our economy, Chief Wale Edun, and his brother Dr. Cardoso in charge of our currency, and Mr. Heineken in the petroleum ministry:

i. Why is Dangote not getting crude oil from our NNPC? If NNPC had crude oil and Dangote refused to buy from them, opting instead to buy his crude oil in the ‘free market’ instead, as someone disingenuously posted in a group I belonged to, how come nobody is reminding him that Dangote Refinery is really not a ‘private company’ for him to do as he pleases with?

After all, Dangote Refinery enjoyed preferential rates of dollars for years as part of the whole nation encouraging him to finish that refinery that is a ‘national asset’. The truth that we all know is that Dangote was getting dollars at a little N300 to $1 at a time when other businesses not so favored were getting it at N500 to $1 🤷🏿‍♂️.

Even when Dangote ran out of money for this same refinery, our government designated it a national asset to be supported and invested billions of regular people’s commonwealth in the refinery project to prevent the refinery from going under. So, he definitely cannot now claim ‘private company’ or claim it was his ‘private property’ to do as willed. If indeed Dangote is claiming this ‘independent’ choice of action, has anyone whispered the reality into his ears?

For sure, under the unemotional laws enforced by Ikoyi lawyers and pronounced so by our well-groomed Ikoyi-trained judges interpreting legislation passed by Ikoyi-minded legislators, one could argue Dangote Refinery is private property. However, in the stark reality of the unwritten Fadeyi ethos, if your neighbors contributed money for your education, and your uncles and aunts gave you little garri, and some rice from their scant resources, and gave you ‘pocket money’ now and then while you were going to school as part of the community support for you and your father to help you graduate, unless you are a bastard you will KNOW your degree is not just your ‘private’ property after your graduation, and would be ready to divorce any Ikoyi or Oyinbo wife who gets upset with you for always sending money home to Aunty Dupe or Uncle Femi to help them out, or for buying lots of presents to give to your ‘uncles and aunties’ every time you visit Nigeria.

There is a reason you don’t argue when your father collects 100% of your first salary from you and then distributes it to different elders in your family and on your street. My father explained that one to me very clearly when it was my turn to drop my first salary, and I never forgot the lesson. It’s what makes our Nigerian community very different from the New York one.

It’s an unwritten rule in Fadeyi economics. It took the whole of Fadeyi (poor and rich) to train you, and when you finally make it, you also understand you must take care of the Fadeyi elders and help out when the community needs you to donate at a fundraiser to clear the gutters. Nobody will even need to remind you of your obligations if you are not a bastard. It’s what made our culture unique.

My point? The entire ‘village’ of Nigeria contributed to making Dangote Refinery a reality (we all did, through our government giving him favorable forex rates from our collective wealth and the Lekki land deals allowing him to acquire land at massive discounts), so he cannot just wake up after the fact and claim the refinery solely belongs to him and his family as 'private property' and tell us he has the freedom to ignore patronizing our local crude oil for foreign ones even if ours is more expensive! He also cannot tell us we must all buy from him at the same international market rates without any concession. Lai Lai.

II. If, on the other hand, he denies allegations of refusing to buy our local crude but claimed that we simply don’t have enough crude oil locally to satisfy his ‘huge’ refinery, then we need to know if indeed the capacity of this Dangote refinery is so much greater than the crude oil we produce locally that Dangote now needs to import more crude oil to meet his huge production capacity, less than 3 months of being operational?

Can a refinery that has not even produced 1 liter of petrol or 1 liter of byproduct of crude oil have consumed all our daily crude oil production that it now needs to import more to remain operational? This explanation also makes no sense unless they think we are all idiots because we didn’t go to Harvard or live in Ikoyi.

iii. Or could the reason Dangote is importing crude oil be that we really don’t have any crude oil to sell to his Dangote refinery, thereby forcing him to import crude oil from abroad with the same forex that the duo of Edun and Cardoso and every bank executive keep telling us we don’t have? Or are they just winding us?

If this possible explanation is true, and we really didn’t have crude oil to sell to Dangote refinery because, like Esau, we have already sold all our future inheritance of crude oil for the next 10 years in exchange for borrowed dollars to use in our ‘borrow and dump’ strategy for dealing with currency fluctuations, then what’s the whole point of rushing to commission a refinery that our government knew will have a negative or zero net effect on our local PMS consumption? After all, it’s hard to argue that forex-backed imported crude oil will be cheaper than the one produced in Dangote’s backyard with the Naira. 🤷🏿‍♂️

Or is any one of those Harvard-trained Ikoyi economists going to seriously argue that the local prices of finished fuel made from imported crude oil will be cheaper than finished fuel made from locally sourced crude oil?

iv. Or maybe all the thoughts above are not the even real reasons Dangote is now full-chest importing crude oil. Could it be because those who are holding our country hostage, in and out of government, are simply just frustrating the efforts of Dangote refinery to acquire crude oil from Nigeria through NNPC?

As incredible as this possible explanation may sound, this is the loud rumor we are now hearing at Mama Modinat’s buk ka from sisi Amebo, who seemed to know everything going on even before it happened😎😎😎

As crazy as it sounds, I am now inclined to believe this loud rumor that there is some disgusting political play going on here, where NNPC is refusing to sell crude oil to Dangote for whatever reason.

Yes, I say I am inclined to believe this seemingly absurd rumor because we all watched as a government that is struggling with forex reserves, and a government that inherited a dying local production sector with many manufacturing companies folding up daily, chose to spend millions of our scarce dollars in importing foreign cars for its legislators and government functionaries when there are local car manufacturers like Innoson literally begging and bending over backward to get their business. If our government could choose not to patronize local car manufacturers, it’s not unreasonable to believe that some of our government officials or operatives of NNPC may choose to frustrate Dangote refineries for whatever petty reasons they have.

Our government of Renewed Hopes chose to dash the hopes of local car manufacturers by patronizing foreign manufacturers at the expense of its own struggling local manufacturers of vehicles. It’s the most unreasonable politics of victimization against Innoson motors, and very few people called it as it is. Now could it be the same lack of patronage by our NNPC or government officials playing dangerous political games with our collective welfare, that have forced the hands of Dangote to look towards the importation of its needed crude oil?

I don’t know what’s true or not, but I think we should all care less if Innoson is owned by Igbos or Hausas or Kanuris or if owners supported a different candidate or not. It should have been a priority national asset that the government should have gone out of its way to support. If they could deny Innoson and other car companies in Nigeria the much-needed support for whatever reason that was never made clear to us, then I can definitely believe that some people in this government and other powerful people outside of it may not want Dangote refinery to succeed.

Reading about Dangote importing crude oil when we are still exporting our own crude oil just gives me a headache because I can’t find any logic in that scenario. Our local refineries have not met the demand for even one liter of finished product from locally sourced crude oil, yet we are now talking about it being ‘normal’ for our newly commissioned local refineries to import crude oil from abroad with dollars we don’t have?

Anyway you look at this national saga of Dangote importing crude oil in Africa’s biggest producer of crude oil, it makes no sense and we demand an explanation!

So, while I hesitate to drag President Buhari himself on this at this time until I get more clarity, we must nevertheless ask the ministers he appointed first before we come for him. So, Chief Wale Edun, our coordinator of economy, Mr. Heineken Loquobiri and Mrs. Ekpo, our ministers of state for petroleum, and of course my favorite man of the hour, Dr. Cardoso, our Forex Czar, what’s really going on here?

Until we can get clear answers that make common sense, it’s like our Nigerian economy is about to transition from a Fadeyi economy to a Voodoo economy, where nothing makes sense to a rational person. 🤷🏿‍♂️🤷🏿‍♂️🤷🏿‍♂️🤷🏿‍♂️

My name is Ope Banwo. I am not an economist but as a self-appointed Mayor of Fadeyi, I demand answers on behalf of ‘my people’. 🚶🏽‍♂️🚶🏽‍♂️🚶🏽‍♂️🙌🙌🙌