Topman7:


Shut up and use your brain before insulting Africans, you dunce.

Oh sure, you know better than the professionals at a multi billion dollar company where they should source their products.

Dummy.

There are numerous grades of crude oil, each with its own market price, and level of demand.

It’s not about saying “oh this place has oil, so why don’t you buy from there instead of here?”

bemeruca:
Nigeria is dead.
If he does not buy from naija, it should be closed down

Lilosio:
Africans the most foolish race in the world..
Why best expensive oil from US when you can get cheaper price from Iran/Russia even third parties like India and china would sell cheaper to Nigeria....

Clearly we know the set up of Nigeria, clown billionaires..

DeLaRue:


No, it is not dead.

And Nigeria cannot close the refinery.


The issue is that Dangote needs far more crude oil that Nigeria has to sell, so Dangote has to buy more from elsewhere.

Secondly, America is now the world's largest producer of crude oil. It is producing far more than Saudi Arabia. US crude oil is also cheaper. Even cheaper than Nigerian crude oil.

So, even if Nigeria is producing enough to sell to Dangote, Dangote will still buy from abroad if it is cheaper than buying from Nigeria.

This is business. Profit needs to be made.

Basic123:



You lack understanding!

MarketDispatch:
Still struggling to understand why NNPCL will part finance Dangote Refinery, but Dangote is going to buy Crude oil in USA whilst NNPCL has Crude oil in Nigeria

Forumites:
One of the stupid mods keep banning me for saying the truth. Na ogun go kill the person wey go ban me again for this platform. How can we supply to USA and Dangote (one that has no pity on Nigerians) will buy from USA. Thunder will locate all of you soonest.

TheBill:

Dependence on Oil Revenue
Nigeria’s external reserves owe much of its growth to the development at the international crude oil market. The Nigerian government has been dependent on oil revenue for more than half of its budget and more than 90% of its foreign exchange.

Debt Servicing
Nigeria’s federal and state entities have borrowed so much money that debt service now consumes more than 70% of revenue, according to the finance ministry. Nigeria spent N2.34 trillion on debt servicing out of N3.25 trillion revenue generated in the country in 2020.

Consequences of High Debt Servicing
The government’s increasing reliance on internal and external borrowing to finance its operations puts Nigeria’s future at risk. In 2023, debt service was expected to absorb somewhere between 80 and 100% of oil revenue. The cost of debt servicing had surpassed the government’s retained revenue, leaving it in a deficit.

Efforts to Reduce Dependency
Efforts to reduce dependency on borrowing have led to a renewed drive to increase efficiency and revenue intake. The reinvention of the Nigerian National Petroleum Corporation as a “private venture” and the proposed five percent tax on mobile services, including voice calls, mobile data and text messages, are some of the moves to increase revenue.

In conclusion, Nigeria's dependence on crude oil and high debt servicing are significant issues that need to be addressed. The government's efforts to increase efficiency and revenue intake are steps in the right direction, but more needs to be done to reduce the country's reliance on oil revenue and borrowing.

Gajagojo:
When you have no clue just keep your mouth closed

People will assume you are smart
It is not compulsory to speak

The issue is beyond your knowledge and brain power

You simply have no clue

DeLaRue:


No, it is not dead.

And Nigeria cannot close the refinery.


The issue is that Dangote needs far more crude oil that Nigeria has to sell, so Dangote has to buy more from elsewhere.

Secondly, America is now the world's largest producer of crude oil. It is producing far more than Saudi Arabia. US crude oil is also cheaper. Even cheaper than Nigerian crude oil.

So, even if Nigeria is producing enough to sell to Dangote, Dangote will still buy from abroad if it is cheaper than buying from Nigeria.

This is business. Profit needs to be made.

DeLaRue:


No, it is not dead.

And Nigeria cannot close the refinery.


The issue is that Dangote needs far more crude oil that Nigeria has to sell, so Dangote has to buy more from elsewhere.

Secondly, America is now the world's largest producer of crude oil. It is producing far more than Saudi Arabia. US crude oil is also cheaper. Even cheaper than Nigerian crude oil.

So, even if Nigeria is producing enough to sell to Dangote, Dangote will still buy from abroad if it is cheaper than buying from Nigeria.

This is business. Profit needs to be made.

bnanny:
Dangote is a business man. His private company can buy crude from anywhere in the world. Anyone from tinubu or obi camp who is paid Should set up his/her own refinery period.

bemeruca:
Nigeria is dead.
If he does not buy from naija, it should be closed down

Lilosio:


Nigeria billionaires are puppets of western government.. nothing they do will favor the common man..

Imagine buying oil from a country that imports 8 Millon barrels per day while Nigeria produces 1.3 million barrels per day.. abeg nor be ment be that?

Wetin dey do us for Africa, who swear for us na? Haha

wallrichy:
Exactly, doesn't have the brain to comprehend what's happening in the Nigeria oil and gas sector. Most people on this nairaland platform are more of illiterates and very unintelligent whenever it comes to Economic theory discussion. Though, most are good in tribal fights and useless gossips but a productive discussion, most people are total daft.

Let me use this medium to explain what's happening in this crude oil importation by dangote in layman language.

During the last administration, Buhari Administration infact, Nigeria borrowed so much from the foreign countries such as China, India, America etc......

The government MOU for payback on the borrowing was an agreement of Crude oil lifting thus equivalent to the Crude oil lifted plus interest charges. It's quite a stupid negotiation if you ask me cos there's no way it can be equalized to the product been lifted and beside, Fx ain't constant as per the market factors. This decision is one of those stupid decision Buhari and his gang plus NNPC took while in power.

Presently, most of our crude oil are been lifted without payback cos the debts is been deducted as agreed in the MOU. That's the reason we can't produce or rather generate enough crude to supply dangote and others.

Though that is not the only obstacle but also the crude theft and also illegal bunkering. All these makes it very difficult and impossible for Nigeria to supply dangote enough Crude oil for continuous production. Hope you guys know that when a refinery starts producing, it's better and less expensive to keep it running than to stop and later reactivate it. Refinery must have more than enough product before it starts running and producing and shouldn't stop for no reason except there's an overhaul or a major disruption to equipment.

Hope you guys understand better now....

bnanny:
Dangote is a business man. His private company can buy crude from anywhere in the world. Anyone from tinubu or obi camp who is paid Should set up his/her own refinery period.

successman100:
If you don't have knowledge, go and die instead of talking from your sheet hole mouth.

Buhari has sold our oil to China till 2030. So no oil to sell for Dangote.
You done here?
Ode. Kogo, chimpanzi.

MarketDispatch:
Still struggling to understand why NNPCL will part finance Dangote Refinery, but Dangote is going to buy Crude oil in USA whilst NNPCL has Crude oil in Nigeria

omoredia:
Which US. Its oil credit. He is simply buying back our so called stolen crude. Nigerians are worst than demons

yewit37486:


You are busy insulting people for it being above their level of understanding, if truly you knew, you would have explained instead, since you know all.

Gajagojo:
When you have no clue just keep your mouth closed

People will assume you are smart
It is not compulsory to speak

The issue is beyond your knowledge and brain power

You simply have no clue

rertylentl:
Nigeria one of world's largest crude oil producers now buys crude oil from US. Tinubu have mechanic brain