tollyboy5:
The manufacturing sector too are not very honest.
Since the rise in naira most of the manufacturered product that hardly need foreign raw material still maintained their exorbitant prices.
Dangote bought his crude oil from usa when dollar was high. And now the pump price of imported diesel is at ₦1250 base on the exchange rate. You won't expect dangote to loose.
Let him sell off what he has now, the more naira gain more strength the lesser the price of diesel because dangote cannot sell above imported market price.

Better days ahead.

The prices are controlled by distributors.

tollyboy5:
The manufacturing sector too are not very honest.
Since the rise in naira most of the manufacturered product that hardly need foreign raw material still maintained their exorbitant prices.
Dangote bought his crude oil from usa when dollar was high. And now the pump price of imported diesel is at ₦1250 base on the exchange rate. You won't expect dangote to loose.
Let him sell off what he has now, the more naira gain more strength the lesser the price of diesel because dangote cannot sell above imported market price.

Better days ahead.

You know nothing of what is happening. Diesel price is 1450 and above, no change despite dangote comming onboard. Some Nnpc sell at 1390, but with heavily tampered pumps.
There is no manufacturer or service provider, school, hotels etc making money right now, the are all making loses, most even burning into their capital just to remain open hoping things will improve.
Dangote sells at 1250-1300 not retail but to buyers of 1m and above liters. By the time it gets to the stations, it is the same price as imported diesel!
No manufacturer can make and sell at such cost, as imported products will be cheaper, very soon they will shut down factories and rather import cheaper product, then use the factory space as warehouse after disposing of the machines. Afterall business is to make gain.
Same thing happened in the 90s early 2000s when factories all over closed and were turned to churches, warehouses etc. The owners saw it was less stressful disposing of machines and just renting out for storage.

Toosure70:
Sorry,new tariff will take 100% soon

That is.
There is likely to be a situation soon where it will be cheaper for them to run on diesel than on the National grid,then we go back to square 1.

nedekid:

You know nothing of what is happening. Diesel price is 1450 and above, no change despite dangote comming onboard. Some Nnpc sell at 1390, but with heavily tampered pumps.
There is no manufacturer or service provider, school, hotels etc making money right now, the are all making loses, most even burning into their capital just to remain open hoping things will improve.
Dangote sells at 1250-1300 not retail but to buyers of 1m and above liters. By the time it gets to the stations, it is the same price as imported diesel!
No manufacturer can make and sell at such cost, as imported products will be cheaper, very soon they will shut down factories and rather import cheaper product, then use the factory space as warehouse after disposing of the machines. Afterall business is to make gain.
Same thing happened in the 90s early 2000s when factories all over closed and were turned to churches, warehouses etc. The owners saw it was less stressful disposing of machines and just renting out for storage.

I'd like to know what happened in the 90s that led to this if you don't mind

Max24:
Government investing in power projects is not a smart move. That was the genesis of all the wasted monies by Obasanjo and others. Same happens every time government spends money on refineries in the past. It's better for government to create a conducive environment for private investors and allow them to invest in power projects rather than using government money. An example was the old govt telephone company, NITEL, compared to when private investors like MTN, ECONET,GLO entered the field. That revolutionalized the telecoms sector. Government should do same with power.

^^^
Fair enough.

The evidence clearly supports some of your points.

But...a logical extension of the argument is that government needs to fully and completely privatize and liberalize national defence, police, customs, education, immigration, prisons, the justice system, the civil service, public health and public infrastructure. If you look around you, not one of these systems is working properly. Why should they be kept exclusively in government hands when government clearly cannot manage them properly?

Nigerian government could not properly manage NITEL. It had to allow private investors come in for things to change. As far as I am aware, nobody has to pay MTN or Airtel staff any bribes to get new phone lines or get complaints attended to. The Nigerian government also cannot properly manage any of its refineries. Same thing for power projects - as you stated earlier. So what are we waiting for? The Nigeria Police (whom everybody loves to hate) could be used as a pilot project - for privatization and liberalization of what are currently 100% government services. The others can then follow.

Maybe a deregulated private army will actually win this war against terrorism - and the excuses will finally stop.

Max24:

Government investing in power projects is not a smart move. That was the genesis of all the wasted monies by Obasanjo and others. Same happens every time government spends money on refineries in the past. It's better for government to create a conducive environment for private investors and allow them to invest in power projects rather than using government money. An example was the old govt telephone company, NITEL, compared to when private investors like MTN, ECONET,GLO entered the field. That revolutionalized the telecoms sector. Government should do same with power.

You juts took me down memory lane with Nitel.

Those Nitel guys shows phone users pepper. They felt like demi-gods. Your line will just disconnect for no reason and you'll need to get to their office on time to lay your complaint. Even at that, they won't respond promptly.

You'll see Nitel wires on NEPA poles everywhere.

The days of analogue telephones: to dial each number, you'll put your finger into the hole corresponding to that number and turn the wheel closewise.

Mehn! Our folks tried sha. Thank GOD digital telephones took over. The days of Multilinks and Starcoms.

Starcoms...we speak your language.

Everything is time and season. Nothing lasts forever.

Feldie:
I'd like to know what happened in the 90s that led to this if you don't mind

Same poor electricity, high cost of Ago, LPFO, high interest rates, multiple taxation etc.
It then becomes cheaper and less stressful to import, store and sell. Those days, we were at iganmu industrial estate, all our neighbors gradually stated disposing of their machines for scrap and started importing all sorts, from the then "I pass my neighbor" generators to lanterns, pots, fridges, cookers etc, we continued manufacturing. When we received sense after being so much in debt, we too sold our machines and rented out the place as storage for imported goods. Infact it was used by a bank to store goods they financed for importers.
Go to iganmu industrial estate now, areas such as Aminu jinadu close and see how desolate it is, a former thriving industrial area with thousands of workers, form Italians, to lebanese, French, Nigerians, Indians, Ghanaians.

Max24:

Government investing in power projects is not a smart move. That was the genesis of all the wasted monies by Obasanjo and others. Same happens every time government spends money on refineries in the past. It's better for government to create a conducive environment for private investors and allow them to invest in power projects rather than using government money. An example was the old govt telephone company, NITEL, compared to when private investors like MTN, ECONET,GLO entered the field. That revolutionalized the telecoms sector. Government should do same with power.

people that can afford 24/7 electricity already have it if you ask me

nedekid:


Same poor electricity, high cost of Ago, LPFO, high interest rates, multiple taxation etc.
It then becomes cheaper and less stressful to import, store and sell. Those days, we were at iganmu industrial estate, all our neighbors gradually stated disposing of their machines for scrap and started importing all sorts, from the then "I pass my neighbor" generators to lanterns, pots, fridges, cookers etc, we continued manufacturing. When we received sense after being so much in debt, we too sold our machines and rented out the place as storage for imported goods. Infact it was used by a bank to store goods they financed for importers.
Go to iganmu industrial estate now, areas such as Aminu jinadu close and see how desolate it is, a former thriving industrial area with thousands of workers, form Italians, to lebanese, French, Nigerians, Indians, Ghanaians.

Nawaooo 😥

Flier:
The available power plants is almost enough for Nigeria we are not really consuming light like that
The problem is Gas,they are not buying gas to power the plants

I beg to disagree, the number of power plants we have in Nigeria is not enough!

How can a country with a total population of over 200million still be grappling with total installed electricity capacity of less than 30,000Mw?!

You never have anything positive to contribute. Why not just shut up

jkpbestseries:
You go explain tire

500 naira for fuel is still high bro. If it can go back to 300 or a bit less then Nigerians will enjoy

Ejiakusmith:
I also had the Dangote Refinery will be selling fuel ⛽ #500 as it starts working...... Make e do start oooo high cost wan kill person oo

You've said it all. Most production companies uses diesel just like me. I would pick reduction of diesel above anything

inoki247:
This is the real Fuel that needs subsidy.. .



You will use Diesel to Produce cause there's no Light still use Diesel to du logistics.....


I believe if Diesel is so cheap produce will get cheaper....

Yet economic illiterates wants price of goods to go back to what they were.

SoNature:
Instead of investing in massive power projects, Tinubu is spending trillions of naira constructing a coastal road to connect states that are already linked by roads.

E no go ever beta for the person wey swear say this country no fit get leaders wey get sense.

Do you - SoNature the follower get sense? You will soon proof it by the way you respond to this chat.

nairalanda1:


Doing so means allowing the power companies charge cost reflective tarrifs, which most NIgerians do not want because we are 'poor'.

There was a similar argument before the coming of Mtn, econet and others, and indeed they were expensive at first. But with time they become a utility for all including the poor. But the advantages far outweigh the initial challenges. With more power we can have a more productive society and we start producing for Africa. If Ghana can do it so can we. Though I know some people will turn the increment to political fight as they are doing with the band A increment now.

My argument in the church last Sunday

Kenochi:
In an earlier thread,I stated that Nigeria is the only country in the world that economic activities are run on Diesel
Our energy mix is probably the worst in the world,in a country where people are struggling to produce electricity,you now mandate that all electricity produced should be sent to the National Grid, power is produced in Akwaibom and that power is sent to a Central Grid
That central grid now sends it to Companies in States who now resell it,this is why we will never progress
This Government must decentralize power,let us have Regional Grids for all the regions.
Coming back to MAN,I feel for them,I salute their patriotism because it is not easy producing anything in Nigeria
I also salute Dangote,I sincerely feel they can still reduce the price of Diesel,even if Government can intervene to ask that the price be reduced to at least 1000 naira,it will greatly reflect on the end users who desperately need respite

OGA even though I concur Energy/electricity is vital to Economic growth, even if the government slash the price of diesel to #500 .. Nigerian Manufacturers will still find a way to inflate/hike,
When diesel was reduced, it was dollar they heap the blame on claiming all raw materials are imported, now they have shifted the goal post back to Power. it all reeks of insincerity

The High cost of production that couldnt make Mtn & Econet sell there sim at affordable price Is what GLO incured and still manage to revolutionize the industry ...

Nigerian Manufacturers don't use overhead cost to decide price, rather they are more focus on imported rivalry product price as a Price template.

The most annoying part, the higher the price of a local product, the lower the quantity, quality and standard of the product, dem swear for us for these country

You see how mediocrity has crept into our everyday sector and life.....?
The fuel subsidy and how cartels built the narrative and today it's so big that it's about bigger than the nation....
Food inflation.......we heard flour and rice kinda reduced price....bread is costlier....puff puff...no go there......
Diesel from Dangote....
Cement.......
Name it......
This country has auto run most of its existence.....
I always said that we must squash this headless hydra or we will count as nobodies in the afterlife........
So called know know dem, keep permutations till next election cycle.......
If I wasn't black, I could take my chance with Ukraine or Israel.....
At least, it would count for something.

Kenochi:



https://www.vanguardngr.com/2024/04/diesel-gulps-80-of-manufacturers-profits-man/

These people are not so honest abi we don't know the meaning of profit again?

coolgb:
Now that both diesel price and dollar are coming down, we are waiting for your excuse by july

by then, they will likely blame tax and weather.

nairalanda1:




3. Power companies want to give light. They have to make a profit doing so to pay for expansion, upgrades, staff salaries and so on. They are not madt to refuse to supply power. Like you want to be paid a fair wage for your work or make a.fair profit from your business, they want the same.

Hydro is not sufficient a

Believe that junk of lies at your own Peril,, you know

If globacom had not come on board, till today Mtn & airtel would still have being explioting Nigerians citing high cost of production as a Valid excuse ..
If not for Airpeace , Nigerians would have continue paying through there nose for flight, now look at the price competition going on in the aviation industry, what happened to high cost of operation claim ... the elites class are easily bamboozled becos they think its the economic they read in school in play
TSTV if allowed would have exposed Dstv, cost of operation is valid but over abused

All we need is Just one sincere player in the power Sector and you will see all there Lies lose grip

As if they reduce the price of products when the price of diesel falls.

iamtoofan:



Believe that junk of lies at your own Peril,, you know

If globacom had not come on board, till today Mtn & airtel would still have being explioting Nigerians citing high cost of production as a Valid excuse ..
If not for Airpeace , Nigerians would have continue paying through there nose for flight, now look at the price competition going on in the aviation industry, what happened to high cost of operation claim ... the elites class are easily bamboozled becos they think its the economic they read in school in play
TSTV if allowed would have exposed Dstv, cost of operation is valid but over abused

All we need is Just one sincere player in the power Sector and you will see all there Lies lose grip

Oil dey your head bro.
In the real market it's greed that is play not basic economic.
All this their union and associations are part of the problem too.

Kenochi:
In an earlier thread,I stated that Nigeria is the only country in the world that economic activities are run on Diesel
Our energy mix is probably the worst in the world,in a country where people are struggling to produce electricity,you now mandate that all electricity produced should be sent to the National Grid, power is produced in Akwaibom and that power is sent to a Central Grid
That central grid now sends it to Companies in States who now resell it,this is why we will never progress
This Government must decentralize power,let us have Regional Grids for all the regions.
Coming back to MAN,I feel for them,I salute their patriotism because it is not easy producing anything in Nigeria
I also salute Dangote,I sincerely feel they can still reduce the price of Diesel,even if Government can intervene to ask that the price be reduced to at least 1000 naira,it will greatly reflect on the end users who desperately need respite

Power generation and distribution are no more on the exclusive list, States can now generate and distribute electricity

tollyboy5:

Oil dey your head bro.
In the real market it's greed that is play not basic economic.
All this their union and associations are part of the problem too.

i always tell people, when you are talking about Nigeria you have to put Book or whatever you learnt in school aside ... Nigeria is blessed, we don't even have natural disaster but One big Disaster we have is human factor

In Nigeria economic, forces of demand and supply are in one cell, what we have in play in market is cabal and cult-like forces ... few people hijack supply and dictate

Govt closed Land border to foster and promote local production ... on 8yrs assessment weytin we gain, sometimes i feel local producers are solely fixated on Profit making, in as much as they keep putting Profit ahead of standard service & products there won't be progress

What they've fail to take into cognisance is a satisfied customer will exhibit loyalty and vulnerability to pay any amount to enjoy.

Kenochi:
In an earlier thread,I stated that Nigeria is the only country in the world that economic activities are run on Diesel
Our energy mix is probably the worst in the world,in a country where people are struggling to produce electricity,you now mandate that all electricity produced should be sent to the National Grid, power is produced in Akwaibom and that power is sent to a Central Grid
That central grid now sends it to Companies in States who now resell it,this is why we will never progress
This Government must decentralize power,let us have Regional Grids for all the regions.
Coming back to MAN,I feel for them,I salute their patriotism because it is not easy producing anything in Nigeria
I also salute Dangote,I sincerely feel they can still reduce the price of Diesel,even if Government can intervene to ask that the price be reduced to at least 1000 naira,it will greatly reflect on the end users who desperately need respite

You can't have regional grids just like that..

Power infrastructure is not something to change policy and everything changes..

Government doesn't have money to develop it..you want them to dismantle national grid and rewire for regional? With which money..

Who will start rerouting transmission lines?

Come down to Terminal in ibeno. We have here 24hr electricity. Free of charge. Cheap lands too. And beach.

Kenochi:



https://www.vanguardngr.com/2024/04/diesel-gulps-80-of-manufacturers-profits-man/

if that's the case, then they should be happy to be on Band A if that gets them 20hrs, as grid electricity is far cheaper than diesel generated electricity, even at N225kwh

Max24:

Government investing in power projects is not a smart move. That was the genesis of all the wasted monies by Obasanjo and others. Same happens every time government spends money on refineries in the past. It's better for government to create a conducive environment for private investors and allow them to invest in power projects rather than using government money. An example was the old govt telephone company, NITEL, compared to when private investors like MTN, ECONET,GLO entered the field. That revolutionalized the telecoms sector. Government should do same with power.

If you want private sector in there.. subsidy in electricity must end