Dangote cheif strategies is proposing back integration schemes for oil refinery...meaning only companies that are currently buiding refineries should be allow to import petroleum product into Nigeria ....this has been his strategy to coner ever markets he jumps into ( in the guise of local production capacity) to create monopoly or oligopoly...used same for sugar and cements now proposing same for refinery......i visited the refinery projects recently and I observed that the company was more interested in finishing the depots ,loading gantry and access road and Jetty ....with a 60m litre capacity completed....they have 3 companies in the location...Dangote refinery (40 peecent completed ) dangote product marketing company ( completed ) and dangote fertilizer (complete)....the dangote petroluem marketing company is suppose to buy refine products from Dangote refinery and sell for profit.... and can source for products any where in the world....so since the refinery is not yet ready they can't wait f they will start by importing this year..... (This a decoy) since the enough depot and stations and vessel own by dapman and ipman member and non is building a refinery currently if the govt accept the back ward integration then only dangote product marketing company will monopolized the 1 trillion naira hyrocarbon markets

He can easy achieve this with the way the Cbn and the Nigeria state is banking on the dangote refinery as the only saviour.....the cash flow from the DPMC will be used to complete the refinery ( fractionating colums) .....while ever other player in the down stream must buy from DPMC ......this a strategy in business to used Govt regulation to crate a monopoly or capital entry requirement (which must player cannot arrangements..) even B.U.A will take over a 10 years to catch up...

The Moman members missed this huge oppurtunity especially total and mobil and Texaco that had the capacity to build refineries even if it was 50 k barrels....but they kept crying like babies and could not see what dangote saw ...they wanted subsidies removed ,price deregulated and was importing and collecting subsidies endlessly of over 13 bn dollars now the master is about to become slave or get exterminated by dangote group while indigenous marketers have battle oil Major hand down in the down stream sector and are declaring loss up and down ..AA rano ,shafa,rain oil,enyo,falawiyo shema are beating them black blue in the marketing down stream the fate of burharm cement awaits them....

ahiboilandgas:
The Moman members missed this huge oppurtunity especially total and mobil and Texaco that had the capacity to build refineries even if it was 50 k barrels....but they kept crying like babies and could not see what dangote saw ...they wanted subsidies removed ,price deregulated and was importing and collecting subsidies endlessly of over 13 bn dollars now the master is about to become slave or get exterminated by dangote group while indigenous marketers have battle oil Major hand down in the down stream sector and are declaring loss up and down ..AA rano ,shafa,rain oil,enyo,falawiyo shema are beating them black blue in the marketing down stream the fate of burharm cement awaits them....

They are foreign owned companies, they don't believe in Nigeria..


We can see how Dangote Cement and BUA Cement overtook Lafarge..


Unilever and PZ have been struggling to be profitable for about 3 years, they need to learn somethings from the Asian owned fast moving consumer companies in Nigeria.

Indigenous marketers can fight back....the i trillion markets is there .....they can't fight dangote group individually but can collectively by floating their own refinery company no be B.a.u suppose to dey announce another 200k barrel is supposed Atieo and others ....they can come up with 50m dollars each and arrange fiance to have their own 100k barrels refinery....the have the depots ,they have the trucks they have the stations in strategic areas and the work expirence....which dangote lack now ...

emmanuelewumi:



They are foreign owned companies, they don't believe in Nigeria..


We can see how Dangote Cement and BUA Cement overtook Lafarge..


Unilever and PZ have been struggling to be profitable for about 3 years, they need to learn somethings from the Asian owned fast moving consumer companies in Nigeria.

i tire for their matter one Asian just came in establish his factory viva detergent ....boom it giving unilever and p.z sleepless Nights infact the quality of his detergent is rising and capturing markets share....meanwhile p.z and unilever are complaining of unfavourable economy...MR Lee has been producing bathroom slippers in kano for the past 50 years the lee group ....

This is why an average Nigerian thinks that Dangote and his cohorts are always favoured by the political class. The same economic policy and strategy failed woefully during OBJ's regime. I won't be surprised if his wish is granted, after all, he has developed the capacity to command such. However, it's just sad that there are no real economic models to drive the growth of this nation, na just so so plug plug.

And of course, I agree with your other points about how other players and actors should have taken the step to do what Dangote is doing. Now that he has done it, he wants no competition. But what's a market without competition?

ahiboilandgas:
Dangote cheif strategies are proposing back integration schemes for oil refinery...meaning only companies that are currently building refineries should be allowed to import petroleum product into Nigeria ....this has been his strategy to coner ever markets he jumps into ( in the guise of local production capacity) to create monopoly or oligopoly...used same for sugar and cements now proposing same for refinery......I visited the refinery projects recently and I observed that the company was more interested in finishing the depots, loading gantry and access road and Jetty ....with a 60m litre capacity completed....they have 3 companies in the location...Dangote refinery (40 per cent completed ) Dangote product marketing company ( completed ) and Dangote fertilizer (complete)....the Dangote petroleum marketing company is supposed to buy refined products from Dangote refinery and sell for profit.... and can source for products anywhere in the world....so since the refinery is not yet ready they can't wait for f they will start by importing this year..... (This a decoy) since enough depot and stations and vessel own by Chapman and Lipman member and non is building a refinery currently if the govt accept the backwards integration then only Dangote product marketing company will monopolize the 1 trillion naira hydrocarbon markets

stevemims:
This is why an average Nigerian thinks that Dangote and his cohorts are always favoured by the political class. The same economic policy and strategy failed woefully during OBJ's regime. I won't be surprised if his wish is granted, after all, he has developed the capacity to command such. However, it's just sad that there are no real economic models to drive the growth of this nation, na just so so plug plug.

And of course, I agree with your other points about how other players and actors should have taken the step to do what Dangote is doing. Now that he has done it, he wants no competition. But what's a market without competition?

it actually succeeded in cement but at a horrible cost ...cements now costly 3300 and unaffordable but available ....in the 90s their used to be cements racket in govt owned plant ....u can sell your allocations and collect rent sharp sharp if u know a big man in Nigeria ....but now we have reach capacity and no scarcity but unaffordable..and they are during same for sugar gradually

.....but it very unfair ....obj was convinced by the group of tony elemelu dangote,otedola and other s that that the south Korean and Singaporean models....few big players

That's the point my oga, these guys are businessmen, their profit comes first before patriotism, OBJ had the likes of a young bright Pat Utomi as an economic adviser but couldn't figure that it's only a matter of time before such policy backfires.

The price of cement skyrocketed to 4400-4500 towards the end of 2020, it's been on that path since the end of January 2021. Naija na very unique nation sha.

ahiboilandgas:
it actually succeeded in cement but at a horrible cost ...cements now costly 3300 and unaffordable but available ....in the 90s their used to be cements racket in govt owned plant ....u can sell your allocations and collect rent sharp sharp if u know a big man in Nigeria ....but now we have reach capacity and no scarcity but unaffordable..and they are during same for sugar gradually

.....but it very unfair ....obj was convinced by the group of tony elemelu dangote,otedola and other s that that the south Korean and Singaporean models....few big players

Would anyone want to guess what the price of PMS would be when Dangote's refinery comes on-stream?

ahiboilandgas:
it actually succeeded in cement but at a horrible cost ...cements now costly 3300 and unaffordable but available ....in the 90s their used to be cements racket in govt owned plant ....u can sell your allocations and collect rent sharp sharp if u know a big man in Nigeria ....but now we have reach capacity and no scarcity but unaffordable..and they are during same for sugar gradually

.....but it very unfair ....obj was convinced by the group of tony elemelu dangote,otedola and other s that that the south Korean and Singaporean models....few big players

skydiver01:
Would anyone want to guess what the price of PMS would be when Dangote's refinery comes on-stream?

na die from his history ...after creating the monopoly must Nigeria might end up buying bikes like since in benin republic ..

ahiboilandgas:
na die from his history ...after creating the monopoly must Nigeria might end up buying bikes like since in benin republic ..

They will die las las...
Everyone will dump their modern cars like C300 and lexus and start buying 1.6l cars like the 98 Avensis and so on...
Middle class will start flying bikes to work too ,that's when they will know Nigerians were really poor people and all their lifestyle was backed by government subsidies.
Not also forgetting high cost price of modern cars due to weak naira and the resultant inflation of general commodity due to high prices of hydrocarbon and in turn the diminish of purchasing power by the populace ,
Everyone will now start wearing Okrika clothes and shoes ,Tea will become luxury and middle class will start eating beans and bread for breakfast,
Associated industries will collapse also leading to massive unemployment,
Smuggling will be at an all time high and ladies and gentlemen,that's when Nigeria has fallen to the level of CEMAC countries like Cameroon ,Congo,Gabon,Equitorial guinea ,etc..
Also ,education will become useless and Embassies will be cashing out at an all time high because everyone will want to leave at once.
Not forgetting that the alumajiri will starve to death and 80% of the North will die of hunger and diseases since free money and subsidised commodities of goment won't be there no more and insecurity will die a natural death since oligarch will no longer be able to fund them as they would have other priorities Boko harm and herdsmen crises will die naturally.
I go leave the shithole for una then and take my business to Niger and join muslims and be living like a monk and embrace the pauper lifestyle.
Up dangote!!!Can't wait for this to happen,
Also don't forget you stock market will crash and render you penniless.
All your stocks will turn to penny stock,Aje.

stevemims:
This is why an average Nigerian thinks that Dangote and his cohorts are always favoured by the political class. The same economic policy and strategy failed woefully during OBJ's regime. I won't be surprised if his wish is granted, after all, he has developed the capacity to command such. However, it's just sad that there are no real economic models to drive the growth of this nation, na just so so plug plug.

And of course, I agree with your other points about how other players and actors should have taken the step to do what Dangote is doing. Now that he has done it, he wants no competition. But what's a market without competition?

BUA is building his refinery. The promoters of Orient Refinery got their license more 15 years ago, but have not done anything about it

ahiboilandgas:
it actually succeeded in cement but at a horrible cost ...cements now costly 3300 and unaffordable but available ....in the 90s their used to be cements racket in govt owned plant ....u can sell your allocations and collect rent sharp sharp if u know a big man in Nigeria ....but now we have reach capacity and no scarcity but unaffordable..and they are during same for sugar gradually

.....but it very unfair ....obj was convinced by the group of tony elemelu dangote,otedola and other s that that the south Korean and Singaporean models....few big players

I bought cement for N3500 as far back as 2010 .


BUA Cement and Lafarge should use penetrating strategy to acquire the 60% market share from Dangote if they are serious.

ahiboilandgas:
i tire for their matter one Asian just came in establish his factory viva detergent ....boom it giving unilever and p.z sleepless Nights infact the quality of his detergent is rising and capturing markets share....meanwhile p.z and unilever are complaining of unfavourable economy...MR Lee has been producing bathroom slippers in kano for the past 50 years the lee group ....

Even almighty Nestle has been paying dividends from their reserves for the past 2 years

https://www.nairaland.com/6438649/northern-tomato-farmers-traders-lose#99506629

I thought they had balls? we never go anywhere almajiri don dey cry
I said let me see how impoverished people like Niger,Cameroon and so on will replace the market they have in southern Nigeria.
People that leave their countries to smuggle foodstuff and cocoa beans from their countries to Southern Nigeria to cash out are the people aboki want to go and sell their foodstuff to?
If the south know what is good for them,they should enforce and insist on this blockade and deny northerners the chance to come and sell in the South until they eradicate banditry and end herdsmen crises.
You will see that time all this nonsense will end,because they all know who these bandits and killer herdsmen are and their hideouts and are the ones even supporting them morally and to some extent financially.
Because their interest have been attacked, they will start fighting themselves in the north and will wipe out all those unscrupulous elements they use to support,so that they can get that access to sell in the south again.
God bless Rothschild for introducing capitalism to this planet,Aje

Are you being sarcastic? I thought you were a major proponent of an open market run only by the private sector?
Wasn't this what you always wanted but you assured us it was for the better but now you are predicting doom, what changed?

SeaTrade:
They will die las las...
Everyone will dump their modern cars like C300 and lexus and start buying 1.6l cars like the 98 Avensis and so on...
Middle class will start flying bikes to work too ,that's when they will know Nigerians were really poor people and all their lifestyle was backed by government subsidies.
Not also forgetting high cost price of modern cars due to weak naira and the resultant inflation of general commodity due to high prices of hydrocarbon and in turn the diminish of purchasing power by the populace ,
Everyone will now start wearing Okrika clothes and shoes ,Tea will become luxury and middle class will start eating beans and bread for breakfast,
Associated industries will collapse also leading to massive unemployment,
Smuggling will be at an all time high and ladies and gentlemen,that's when Nigeria has fallen to the level of CEMAC countries like Cameroon ,Congo,Gabon,Equitorial guinea ,etc..
Also ,education will become useless and Embassies will be cashing out at an all time high because everyone will want to leave at once.
Not forgetting that the alumajiri will starve to death and 80% of the North will die of hunger and diseases since free money and subsidised commodities of goment won't be there no more and insecurity will die a natural death since oligarch will no longer be able to fund them as they would have other priorities Boko harm and herdsmen crises will die naturally.
I go leave the shithole for una then and take my business to Niger and join muslims and be living like a monk and embrace the pauper lifestyle.
Up dangote!!!Can't wait for this to happen,
Also don't forget you stock market will crash and render you penniless.
All your stocks will turn to penny stock,Aje.

ojesymsym:
Are you being sarcastic? I thought you were a major proponent of an open market run only by the private sector?
Wasn't this what you always wanted but you assured us it was for the better but now you are predicting doom, what changed?

Because the fulani in government think they can twist capitalism to favour their brother at the detriment of others,not knowing they are shooting themselves the foot.

SeaTrade:
They will die las las...
Everyone will dump their modern cars like C300 and lexus and start buying 1.6l cars like the 98 Avensis and so on...
Middle class will start flying bikes to work too ,that's when they will know Nigerians were really poor people and all their lifestyle was backed by government subsidies.
Not also forgetting high cost price of modern cars due to weak naira and the resultant inflation of general commodity due to high prices of hydrocarbon and in turn the diminish of purchasing power by the populace ,
Everyone will now start wearing Okrika clothes and shoes ,Tea will become luxury and middle class will start eating beans and bread for breakfast,
Associated industries will collapse also leading to massive unemployment,
Smuggling will be at an all time high and ladies and gentlemen,that's when Nigeria has fallen to the level of CEMAC countries like Cameroon ,Congo,Gabon,Equitorial guinea ,etc..
Also ,education will become useless and Embassies will be cashing out at an all time high because everyone will want to leave at once.
Not forgetting that the alumajiri will starve to death and 80% of the North will die of hunger and diseases since free money and subsidised commodities of goment won't be there no more and insecurity will die a natural death since oligarch will no longer be able to fund them as they would have other priorities Boko harm and herdsmen crises will die naturally.
I go leave the shithole for una then and take my business to Niger and join muslims and be living like a monk and embrace the pauper lifestyle.
Up dangote!!!Can't wait for this to happen,
Also don't forget you stock market will crash and render you penniless.
All your stocks will turn to penny stock,Aje.

...i can clearly see signs with the 48 kilo watts per hours electricty people cannot on A.c any how again....a director had to change back to estimated billing of 50k per months cos the prepaid was consuming 150 per months......

emmanuelewumi:



Even almighty Nestle has been paying dividends from their reserves for the past 2 years

with the endless devaluation their products are now very costly Nido family almost 10k while low quality brand are replacing them sharply

ahiboilandgas:
...i can clearly see signs with the 48 kilo watts per hours electricty people cannot on A.c any how again....a director had to change back to estimated billing of 50k per months cos the prepaid was consuming 150 per months......

Yes na,A/C will be very big luxury that time ooo,na Handfan directors of all these one man companies go dey use that time because price of diesel will also jump too so no more steady lister,Aje
In naija lower middle class on 300k/month dey get 3 AC for house and they are even complaining,make them wait till dangote do wetin dey him mind first,Aje
Na for floor them go dey sleep with windows open at night and rust go catch those ACs due to high running costs and subsequent inflation that will make that 300k monthly income worthless.
And don't also forget that salaries will drop too when this happens because the overhead for companies will be very high,leading to low pay and massive job losses.

emmanuelewumi:



I bought cement for N3500 as far back as 2010 .


BUA Cement and Lafarge should use penetrating strategy to acquire the 60% market share from Dangote if they are serious.

i doubt if they can they don't have the volumes 20 m metric tonnes vs 11

SeaTrade:
Yes na,A/C will be very big luxury that time ooo,na Handfan directors of all these one man companies go dey use that time because price of diesel will also jump too so no more steady lister,Aje

u be alarmist sha ....500bn dollars economy cannot be as broke as u discrib

ahiboilandgas:
u be alarmist sha ....500bn dollars economy cannot be as broke as u discrib

Who told you that that time the economy will still be at 500bn?
Something that will crash due to high running cost of industries and decrease purchasing power of the people that can no longer patronise these industry products leading to lots of them closing up and the ones that manage to stay afloat will be almost redundant
It's like a lot of people don't know that its hydrocarbon that determines the fate of an economy,worse still for an economy that has no alternative source of power except hydrocarbon like Nigeria.
Aje

SeaTrade:
Who told you that that time the economy will still be at 500bn?
Something that will crash due to high running cost of industries and decrease purchasing power of the people that can no longer patronise these industry products leading to lots of them closing up and the ones that manage to stay afloat will be almost redundant
It's like a lot of people don't know that its hydrocarbon that determines the fate of an economy,worse still for an economy that has no alternative source of power except hydrocarbon like Nigeria.
Aje

the GDP contribution from hydrocarbon is low compared to Agriculture and service industry....dont am twist things hyrocarbon na for forex and govt spending ....that you wine business wil also go down cos wine na luxury it will be replaced with local fura and burukutu

ahiboilandgas:
the GDP contribution from hydrocarbon is low compared to Agriculture and service industry....dont am twist things hyrocarbon na for forex and govt spending

You don't understand,I am not talking crude.
I am talking petroleum products.
If prices of petroleum gets too high,price of trucking that your agricultural produce to the markets will jump by 300% making the industry almost futile and it will collapse,let alone industries that run on diesel to produce.
Watch and see,Aje

Yes, I read about that and it's a good development. It's not surprising, he does whatever Dangote puts his money on. But BUA's position on regulating and having a uniform price for cement should be applauded.

emmanuelewumi:



BUA is building his refinery. The promoters of Orient Refinery got their license more 15 years ago, but have not done anything about it

SeaTrade:
You don't understand,I am not talking crude.
I am talking petroleum products.
If prices of petroleum gets too high,price of trucking that your agricultural produce to the markets will jump by 300% making the industry almost futile and it will collapse,let alone industries that run on diesel to produce.
Watch and see,Aje

we go use donkeys and trains to get it delivered at lower cost ....

ahiboilandgas:
we go use donkeys and trains to get it delivered at lower cost ....

Lol haha ,with donkeys before your farm produce want reach market,3/4 don rotten because it's very slow.
And we don't have enough rails in all directions to cover the distribution channels of those products ,so you need trucks whether you like it or not.
Besides the trains too run on diesel,not electric,so cost will still be high.
And don't forget there isn't enough standard gauge tracks in Nigeria despite the few rails available,which means trains are still very slow and that slow delivery time will kill business, Aje
You have no alternatives ,sadly.

SeaTrade:
Lol haha ,with donkeys before your farm produce want reach market,3/4 don rotten because it's very slow.
And we don't have enough rails in all directions to cover the distribution channels of those products ,so you need trucks whether you like it or not.
Besides the trains too run on diesel,not electric,so cost will still be high.
And don't forget there isn't enough standard gauge tracks in Nigeria despite the few rails available,which means trains are still very slow and that slow delivery time will kill business, Aje
You have no alternatives ,sadly.

it impossible not to have alternatives...that defeatism....a big flaws in the mind of investor ....once their is opportunity money must be made .....ibo guys are already trooping to the North to buy the items the northern traders refuse to move down south....their no law or union that can stop any Nigeria from buying tomatos,carrots and sell in Lagos ....like 25 j5 buses are arriving mile 12 markets today ....