₦airaland Forum

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Na wah o! Monopoly wey go benefit Dangote, but how e go take benefit we Nigerians?

Peter Obi go just dey there dey talk, but no plan to actually help the people.

Make we shine our eyes, e no go fit use mouth take change anything!

That your last point is mind blowing though

Your imaginations are yours and have nothing to do with reality. Whatever happens in that industry, the FG is responsible. You seem not to understand the level of thieves leading you.

LandMann:
And at a national level, it's very dangerous that southern Nigeria sits and watches while northern Nigeria seeks to control the most important sectors of the nations economy. The next biggest refinery is being built in the south by a northern.

Oh it's now "Southern".
No more emilokan.
Yoruba l'agba or whatever the Bleep you say over there

You go wail tire
You never see anything yet

Very true, we are better off importing from Singapore. The Singaporeans needs the job more than we do.

Dangote's influence in the market is undeniable, but let's not forget the positive strides he's making for Nigeria. His refinery could potentially transform our energy landscape, providing jobs and boosting local production. Instead of tearing him down, we should focus on how to leverage his success for the greater good of all Nigerians. Competition will flourish when we encourage innovation and support local industries. Let's think about the bigger picture!

Zaheertyler:
That your last point is mind blowing though

If Bill Gates monopoly was not curtailed by US government, Americans in tech would be gnashing their teeths today.

Read this piece to understand the importance of ANTITRUST LAWS then compare to Nigeria where the government that is supposed to protect the interests of the people now uses its power to protect the business of one person who owns over 90% of his company's shares.

https://corporatefinanceinstitute.com/resources/management/microsoft-antitrust-case/


Everything screams danger, red flag, antipeople.

I would've thought that the most realistic and effective way to prevent a Dangote monopoly was to get the refineries to function at their installed capacity.

Dangote or not, we need an anti-trust law in this country. No single company should be allowed to control more than 40% of their industry. I wonder what this law makers are doing there. We need an anti trust law like yesterday. When Rockfeller and standard oil became so big and became a monopoly. The US broke it down into several companies which are chevron, texaco, mobil etc today.

LandMann:
If Bill Gates monopoly was not curtailed by US government, Americans in tech would be gnashing their teeths today.

Read this piece to understand the importance of ANTITRUST LAWS then compare to Nigeria where the government that is supposed to protect the interests of the people now uses its power to protect the business of one person who owns over 90% of his company's shares.

https://corporatefinanceinstitute.com/resources/management/microsoft-antitrust-case/


Every screams danger, red flag, antipeople.

Antitrust laws are designed by governments in order to ensure fair competition in the market. The laws prohibit practices that result in a negative impact on free markets and create entry barriers. Common examples of such practices include industry-wide price-fixing, corporate mergers that are anti-competitive, predatory pricing done to maintain monopoly power, etc.

The bottom line of antitrust laws is to protect consumers from the harms of market monopolies. The harms usually accrue in the form of higher prices of goods and services for consumers. Many companies try to circumvent legal liabilities by establishing themselves as industry leaders and creating monopolies by buying out or knocking out the competition.
Nice it promotes socialism too and socialism is actually one of the way forward
Thank you

Some people are just afraid of progress. Dangote is here to change the game, whether they like it or not. Competition will only make things better for us, so let the haters keep talking.

Will Dangote have a monopoly if the government owned refineries were working today?

Go and check the amount spent between 1999-2024 on “turn around maintenance” of the government owned refineries and compare it to the amount Dangote used to build a new refinery.

By the way, is importation of fuel from a certain plant in Malta also in the best interest of Nigerians hmmm?

D

LandMann:
If Bill Gates monopoly was not curtailed by US government, Americans in tech would be gnashing their teeths today.

Read this piece to understand the importance of ANTITRUST LAWS then compare to Nigeria where the government that is supposed to protect the interests of the people now uses its power to protect the business of one person who owns over 90% of his company's shares.

https://corporatefinanceinstitute.com/resources/management/microsoft-antitrust-case/


Every screams danger, red flag, antipeople.

Antitrust laws is to protect American citizens and businesses not to leave American businesses at the mercy of foreign competitors.
Dangote is not the only Nigerian with a license to build a refinery. Not only that, there are four government owned refineries. Where then is the monopoly?
China, Russia etc have their own equivalent of Facebook for example, why are they not protecting Facebook to compete with their own platforms?

Salewa97:
Dangote's influence in the market is undeniable, but let's not forget the positive strides he's making for Nigeria. His refinery could potentially transform our energy landscape, providing jobs and boosting local production. Instead of tearing him down, we should focus on how to leverage his success for the greater good of all Nigerians. Competition will flourish when we encourage innovation and support local industries. Let's think about the bigger picture!

Another view but he isn’t saying that he doesn’t have positive strides
He is just saying that allowing one man to have this influence over the market is risky and if he doesn’t have ulterior motives instead of calling the govt to buy he should sell shares to the public
Like you and your friends can come together and form a cooperative business register under cac
Buy shares from the refinery pay your tax and get your income that way the common wealth is spread
Speaking like a lay man though
It works both ways and not just for dangote
If your capital isn’t enough you can find like minds and form a cooperative
Get a good business plan for sweet running system and lawyer to sign the necessary documents
And then hire professionals to run it for you who would give you transparent running that helps the stake holders have influence too on the business
It’s a win win for everyone
A lot of people have money it’s just to find ways to draw it out of their pocket

Guestlander:
Antitrust laws is to protect American citizens and businesses not to leave American businesses at the mercy of foreign competitors.
Dangote is not the only Nigerian with a license to build a refinery. Not only that, there are four government owned refineries. Where then is the monopoly?
China, Russia etc have their own equivalent of Facebook for example, why are they not protecting Facebook to compete with their own platforms?

No, the purpose of anti trust is to prevent undue advantage by a single entity in controlling the market share whether domestic or foreign. There are some many examples to protect smaller businesses from influences of the big boys like in case of microsoft, google, visa, tesla etc.

OkCornel:
Will Dangote have a monopoly if the government owned refineries were working today?

Go and check the amount spent between 1999-2024 on “turn around maintenance” of the government owned refineries and compare it to the amount Dangote used to build a new refinery.

By the way, is importation of fuel from a certain plant in Malta also in the best interest of Nigerians hmmm?

That government refineries are not working is not enough reasons to give Dangote monopoly control of the market.

Since there's no more subsidy and no more fixed exchange rate then the government should allow those who want to import with their money import and those who want to produce locally produce.

The government role will be to ensure imported products meet a certain standard with nobody being bribed to corrupt the process... The government role will also be to encourage local production by ensuring that the existing local refineries get the raw materials they need to produce at competitive rates while enacting laws and policies and encouraging foreign and local investors to build refineries.

The government should maintain an international relations policy of non alignment so that if USA is doing anyhow to frustrate the government then Russia and China can be relied on for solution.

These are fundamental things that Nigerian government can do to kick start industrialization in Nigeria using the power of government.

Which western power doesn't want Ajaokuta steel to work? If it's UK and US, then use government power to give it to Russia to fix and get running while training domestic manpower to take over the process in due time.

How can a country experience large scale industrialisation when its steal industry is practically dead due to series of visionless, extremely corrupt and useless governments?

There's a lot to say but be rest assured that giving Dangote monopoly in Nigeria's fuel/diesel sector will never make life easy for Nigerians.

LandMann:
That government refineries are not working is not enough reasons to give Dangote monopoly control of the market.

Since there's no more subsidy and no more fixed exchange rate then the government should allow those who want to import with their money import and those who want to produce locally produce.

The government role will be to ensure imported products meet a certain standard with nobody being bribed to corrupt the process... The government role will also be to encourage local production by ensuring that the existing local refineries get the raw materials they need to produce at competitive rates while enacting laws and policies and encouraging foreign and local investors to build refineries.

The government should maintain an international relations policy of non alignment so that if USA is doing anyhow to frustrate the government then Russia and China can be relied on for solution.

These are fundamental things that Nigerian government can do to kick start industrialization in Nigeria using the power of government.

Which western power doesn't want Ajaokuta steel to work? If it's UK and US, then use government power to give it to Russia to fix and get running while training domestic manpower to take over the process in due time.

How can a country experience large scale industrialisation when its steal industry is practically dead due to series of visionless, extremely corrupt and useless governments?

There's a lot to say but be rest assured that giving Dangote monopoly in Nigeria's fuel/diesel sector will never make life easy for Nigerians.

Is Dangote refinery the only private refinery in Nigeria?

And also, why are the government owned refineries not working despite spending a considerable fortune on turn around maintenance between 1999-2024?

There are several modular refineries been built and BUA group is also building a large refinery too.

Federal government has 4 refineries and I don't think the question of monopoly is valid.

Allow Dangote to produce and sell his product. Stop importation to enable the industry to mature.

More investors will definitely come in.

horlando30:
No, the purpose of anti trust is to prevent undue advantage by a single entity in controlling the market share whether domestic or foreign. There are some many examples to protect smaller businesses from influences of the big boys like in case of microsoft, google, visa, tesla etc.

The question remains, is Dangote the only company allowed to own a refinery in Nigeria?

LandMann:
Based on his antecedent, the problem with Dangote is that once he gets his way, he'll start using court process and any means to frustrate any competition.

It'll even get worse once a northerner is president. That northern president will give him 100% support and he'll use court connections to kill any competition.

That's how he's been able to maintain his monopoly for years and it's not been in the favour of the masses so far.

If you don't understand then imagine if Dangote was the first to bring telecommunications to Nigeria and he was able to get different waivers from government. The industry would not have grown, and prices of telecommunication services would not have fallen. Dangote would have made sure he frustrates or kill any competition and use the power of a northern president to entrench his monopoly.

That's exactly what happened in the cement industry that Dangote controls 62% of. Instead of prices to fall as production capacity increases and since majority of the raw materials used in the cement production is gotten in Nigeria, no, prices of Dangote cement doesn't fall.

Instead, he'll create artificial scarcity by limiting production at certain times to force retailers to increase prices. And then he'll adjust his price upwards.

Guess what, Dangote is also the leader of the cement producers association of Nigeria. Once he bumps up the price, every of his colleagues will do same, most of whom are same northerners.

When telecommunications came to Nigeria, calls, text and data was expensive. But due to open competition created in the sector, over the years, we've seen price of calls, text and data decline. That is what competition does in any economy.

The only time Dangote was forced to reduce price of cement due to low demand was when Ibeto cement was allowed to import cement into Nigeria by Yar Adua administration.

Somehow, Yar Adua died and Dangote got subsequent president to shut down Ibeto cement and used different court cases and corrupt judges to frustrate Ibeto cement. Today, Dangote controls 62% of Nigeria's cement industry and dictates the price.

A lot of Dangote propaganda agents would disagree with this narrative, claiming Ibeto wasn't producing cement and that's why he was shut down because the government wants to encourage local production. Okay

Do you know that Dangote imported cement into Nigeria for over 20 years before he set-up any manufacturing plant? Even after setting up his cement manufacturing plant, Dangote never stopped importing cement. That is the reason why he increased the price of cement in January/February of this year, claiming it's due to exchange rate fluctuations.

If you produce cement in Nigeria and get all your materials in Nigeria, why should exchange rate fluctuations determine the price of your cement?

Today, Dangote has deployed every arsenal he has to secure monopoly of Nigeria's energy market. He effectively wants the government to ban importation while non of the state refineries are working and non of the other private refineries are working.

If the government does what Dangote wants, Dangote will control 90-95% of Nigeria's pms and diesel needs and with the money he'll make and already has, he'll frustrate any competition. Government refineries will never work and will be sabotaged daily till they close down. The other small refineries will never be able to compete. They'll just be little fishes in a pool of water dominated by a shark called Dangote.

Perhaps, Tinubu's administration knows this and that is why they're not giving Dangote a listening ear.

It remains to be seen if they'll break under the pressure Dangote will mount on them.

I'm sure that Dangote will get his demands met once a northern president is in power.

And at a national level, it's very dangerous that southern Nigeria sits and watches while northern Nigeria seeks to control the most important sectors of the nations economy. The next biggest refinery is being built in the south by a northern.

Since Dangote is always using court process to frustrate competition, Nigerian lawmakers and other interest groups should mobilise and pass antitrust laws to curtail Dangote's monopoly.

With exchange rate deregulated and subsidy removed there's no need to keep promoting a so-called backward integration policy that Dangote hides under to perpetuate his monopoly. If importation will keep prices down then don't ban importation since there's no subsidy on exchange rate anymore. The market will adjust.

This habit of issuing bans on certain economic activities to give monopoly advantage to Dangote is one of the leading reasons why people with money prefer to invest outside Nigeria and foreign investors avoid Nigeria.

A public hearing needs to be held to determine if Dangote's monopoly is a security treat to the nation. It's high time Dangote sells at least 51% of shares in his company to the public.

Can you equally tell us why you and your generation has not taken up any sector of choice and initiate you guys own monopoly. It will be okay with Nigerians as long as you are equally solving a problem in that sector. Or is it that you and your generation are just useless and can't even contribute anything to your village to imagine the country at large Is ok let have monopoly in all sectors in nigeria first .Go and make yourself useful to your village people first before talking rubbish of a man trying to make even the smallest difference from others taking our money to dubia to invest

Dangote's achievements can't be overlooked. His investments have created jobs and spurred economic growth. While competition is essential, let's also recognize the positive impacts he's had on local industries. Instead of focusing solely on monopoly claims, we should support policies that encourage healthy competition while acknowledging the strides Dangote has made for Nigeria's economy.

OkCornel:
Is Dangote refinery the only private refinery in Nigeria?

And also, why are the government owned refineries not working despite spending a considerable fortune on turn around maintenance between 1999-2024?

Dangote refinery the biggest and only refinery that is currently working. Just like Dangote cement that controls 62% of cement market in Nigeria and uses this advantage to control cement price resulting in higher prices, Dangote refinery will control over 90% of the fuel and diesel market in Nigeria if government grants him his request and this will result in him fixing higher prices for Nigerians year in year out because there'll practically be no competition and he'll start using court cases to frustrate any competition, relying on government policy enacted to only his favour.

If government owned refineries in Nigeria are not working then the government is to blame for them not working. It is however not enough reason to give monopoly to one man to control the market because it'll end up in higher and higher prices for consumers who are poor and have no voice.

LandMann:
Dangote refinery the biggest and only refinery that is currently working. Just like Dangote cement that controls 62% of cement market in Nigeria and uses this advantage to control cement price resulting in higher prices, Dangote refinery will control over 90% of the fuel and diesel market in Nigeria if government grants him his request and this will result in him fixing higher prices for Nigerians year in year out because there'll practically be no competition and he'll start using court cases to frustrate any competition, relying on government policy enacted to only his favour.

If government owned refineries in Nigeria are not working then the government is to blame for them not working. It is however not enough reason to give monopoly to one man to control the market because it'll end up in higher and higher prices for consumers who are poor and have no voice.

The national government was supposed to have an ownership stake in Dangote refinery, why did that crumble?

D

OkCornel:
The national government was supposed to have an ownership stake in Dangote refinery, why did that crumble?

If not greed, corruption and visionlessness, why is Dangote refinery not selling the shares to the public?

Why was he looking for a government that has been established to be corrupt and incompetent in managing their own state refineries to invest in his own refinery?

LandMann:
The USA and Switzerland is so attractive to global talents because they promote competition and provide an enabling environment for EVERYONE to thrive.

The reason you are in extreme poverty and most of your sensible and well-to-do family members and friends have run away from Nigeria is because Nigeria government keeps killing open competition in Nigeria's biggest sectors while simultaneously creating an environment that is anti progress, anti development, and anti innovation.

The multidimensional poverty you have found yourself in is the reason why you have no good education and no access to opportunity to change your life. If you find yourself working for Dangote you'll only end up working as a slave and a thief because that is what Nigeria's system is designed to do to majority of its citizens. Create few wealthy people and create millions of slaves, thieves and criminals.

If there was strong anti monopoly laws in Nigeria, you'll be able to invest your N20,000 in Dangote refinery and you'll be proud to say you're supporting Nigeria.

But with the corrupt, weak and visionless government leading Nigeria for decades you can't do that. You're eternally damned to a life of poverty and your children too will become victims of circumstances.

If you realise the danger ahead and you start demanding for a change to the existing system, I'll support you because it's the right thing and for the benefit of all.

If you lack the vision and courage to challenge the status quo but would rather bury your head in the sand like the proverbial ostrich then I can't help you.

The choice is yours to make.

All this is French you are speaking. Tell us what has stopped you and your generation from taking another sector that Dangote is not into and create your own monopoly. It will be okey for Nigeria. I am not interested in what is happening outside Nigeria because it is not my business...I live in nigeria. Nigerians are presently protesting for hunger.why don't you go into monopoly of garri which most people need.Or you are only good in shouting monopoly on a business that has 3 government refineries and plenty modular refineries. Tell the people who sent you we are now wiser

Guestlander:
The question remains, is Dangote the only company allowed to own a refinery in Nigeria?

Well, Dangote is not the only refinery we have operational. Infact i know a small refinery that has been in operation for over 10 years but its output is too small 5k barrels per day. Rather its more about market share. If Nigeria requires 445k barrels per day for instance no single company should be allowed to supply more than 40% of it, including dangote or nnpc the 60% should be imported for now till other local refineries are ready. It is risky to allow dangote or any private entity alone to supply 100% of our fuel needs. Assuming a situation where dangote shut down for instance. What happens if there are no alternatives or reserves?

Streetinvestor2:
All this is French you are speaking. Tell us what has stopped me and my generation from taking another sector that Dangote is not into and create our own monopoly. It will be okey for Nigeria. I am not interested in what is happening outside Nigeria because it is not my business...I live in nigeria. Nigerians are presently protesting for hunger.why don't you go into monopoly of garri which most people need.Or am I only good in shouting monopoly on a business that has 3 government refineries and plenty modular refineries. Tell the people who sent you we are now wiser

Your wiseness is foolishness to everyone. Sorry I can't help you

LandMann:
If not greed, corruption and visionlessness, why is Dangote refinery not selling the shares to the public?

Why was he looking for a government that has been established to be corrupt and incompetent in managing their own state refineries to invest in his own refinery?

Good point on Dangote going public.

The major thing to note is, our crude oil must be refined locally. At this point it’s senseless refining crude overseas and importing fuel just to satisfy the needs of a greedy cabal.

Dangote refinery publicly lists its shares

Crude oil is refined locally

Government supplies subsidised crude to the refinery and agree/review selling price of finished products

Win win for everyone.

horlando30:
Well, Dangote is not the only refinery we have operational. Infact i know a small refinery that has been in operation for over 10 years but its output is too small 5k barrels per day. Rather its more about market share. If Nigeria requires 445k barrels per day for instance no single company should be allowed to supply more than 40% of it, including dangote or nnpc the 60% should be imported for now till other local refineries are ready. It is risky to allow dangote or any private entity alone to supply 100% of our fuel needs. Assuming a situation where dangote shut down for instance. What happens if there are no alternatives or reserves?

But Tesla supplies about 55% of EV vehicles in the U.S, why is the U.S not coming down on Musk?
Why is the U.S not encouraging cheaper and well made EV vehicles from China to compete?
The same Americans bailed out their auto makers with billions of dollars because they could not afford to let the die even when foreign automakers from Asia are there and capable of supplying the market with better and cheaper cars.
The reason they did that is to protect American jobs and that should be the priority of the our own government.
We gain nothing by keeping foreigners employed while trying to prevent what is not even a monopoly.