₦airaland Forum

Dobodobo04:
Not entirely true.

If Dangote buys Nigeria’s crude at market rate, he refines the crude, sell to Nigerians at competitive rate in Naira, sell to international market also at competitive rate and hopefully make profit from both local and international market to pay off his debt and keep the refinery operating.

If he sells to the Nigerian market in Naira, which he should do by law, there would be less burden on forex.

Don’t forget that some of the crude derivatives have bigger demand overseas than in Nigeria, so he should be able to attract forex with ease in the overseas market.

Only way there could be a problem is if he has no money to buy crude.
As long as he buys his crude in Naira equivalent of a USD/barrel and sells to Nigeria in Naira , no issue.

Also, we avoid Dollar/Naira volatility. If Dangote buys let’s say 600,000 barrels from Nigeria a day from now for the whole year

600,000 x 366 x (78 Dollar/b *800 exc rate)=

Approx N15 trillion Naira stays in Nigeria. Which can be used to fund half of our budget a year.

Also, that’s N15 trillion naira staying in Nigeria. Imagine the multiplier effects on the economy!!

A lot of people just quote things online out of ignorance. Who told you Crude oil was sold to Dangote in Naira. I have seen the Guarantee for the crude oil sold to Dangote by Shell while you haven't and the Crude was denominated in USD which is the standard for Crude purchase worldwide and the sale would be repaid fully in 6 months upon sale of the by products.
How will Dangote pay for his Crude supply in USD if he sells in NGN that loses value daily. Also you mentioned that Dangote is obliged to sell in NGN by law and I laughed at your ignorance. A lot of you don't know what is called a free trade zone and you can Google it. A free trade zone is another country within a country, Dangote is operating from a FTZ and Nigerian laws do not apply to him.
The only way Dangote will sell to the Nigerian market is if NNPC specially give him a local consumption quota of crude and even that model as stated earlier means less FX earninf for Nigeria for her crude oil since FX revenue is an alternative forgone.

Dee60:
It may be the opposite. Crude for that refinery was imported. PMS price may be raised to N900 or more per litre to allow this refinery to make some profits. Otherwise, Dangote will export its products, which is not bad. It will boost Nigeria's dollar earnings a bit.

I have consistently informed anybody that cares to read on this forum that Dangote will not boost Nigeria's forex earnings and you are still making this nonsense submission.
PresentlyNigeria is exporting her crude oil to earn FX or adopting the NNPC model to swap crude for petrol. Either way crude and fx change hands.
Now if instead of using that crude to get FX you give Dangote to refine then the alternative forgone is FX that should have been earned selling the crude. If after Dangote refines and he exports then the crude returns to Nigeria for which he will repay shell and co that he sources the crude from.
Now any profit Dangote makes in the process will go into settling his enormous debt for the refinery or his escrow account offshore which is the model all the oil companies in Nigeria runs.
They all do not save any of their proceeds in Nigeria but with JP Morgan chase in US and you can't blame them because the oil market is internationally denominated in USD.
So please and please forget Dangote to come and solve your FX problems for you and look elsewhere.

maasoap:
Who else could it could be judging by looking at their supporters and final votes? And MAJORITY of the votes for LP were votes that were primarily meant for PDP

Well it's not mine and I won't support atiku or any other northerner after Buhari no matter what.
It's the turn of the south so let Tinubu continue instead.

Victoronah1:
entertainment is where money is. Unless you want to have a normal life. You don't necessarily need to act or shoe yourself all you need Is money lots of it. But since you don't want to learn no need to release information here. But to make money you have to spend money. If you gather people write a script and shoot it, then use 20k or 50k to make the video top trending eg, on YouTube, you will get more than 24millions views,since YouTube runs add to make money ranging from 1usd t 6 USD per ad view that massive. And runs on a total of 1million people. You're already rich. But of course no need to teach you like you said you don't want to know. Have a nice day my dear.

Please dm, I am willing to learn. Don't mind that slay queen bitch.
She thinks she has arrived living in Canadian snow and dying of loneliness while not having a dime in her account.

maasoap:
Many Obi supporters still believed that APC voters were the reason why Tinubu won 2023 election. What they didn't know was that their split votes for Obi instead of PDP/Atiku was the reason APC won with 8 million votes, down from 12 million votes in 2019.

And who told you the Obi supporters wanted Atiku/PDP to win in the first place. I don't know where you people got this believe that it's either Obi or Atiku in as much as it's anything but Tinubu.
I personally was satisfied with either Obi or Tinubu winning in as much as power returns to the south because the northerners don't have a clue about governance after Buharis bad outing.
So even though I voted Obi, Tinubus emergence is still a victory kind of for me.
But so far Tinubu is proving me wrong that he himself is clueless and overhyped with how he has rubbished the economy.

Kukutente23:
So are we always going to be informed any time the refinery gets a supply of crude?

Besides, how practicable is it for supply to take a whole month when production is supposed to be every blessed day.

If we go by the 650k capacity, the crude supplied will last just 10 days.

What happens to the refinery in the remaining 20 days before the next supply is completed?

You are the only one asking a very relevant question here.
I have been thinking about this 6m barrels thing as well. So we will wait for another 6 barrels or supply will continue non stop after this first tranche.

Harrisonwo:
Anybody who protest should be sh*t. You can't start protesting against a govt that's less than one year old. We should give them time to turn things around

Look at this foolish Zombie. You can't start protesting against a government less than a year. But in less than a year the government can break all records know to man about misgovernance.
The government can allocate billions to itself for SUVs, rice palliatives, renovations and jumbo trip abroad while causing hyperinflation in the process. The government can tell the Citizens to bear pain of subsidy removal and fx floating while enjoying the largesse of billions of taxpayers money in less than a year abi.
May you and your fellow zombies never know peace.

Please is this how this useless man intend to rule Nigeria for the next four years? Sharing money and rice to politicians with virtually no clue on how the country will be better?
The prices of goods and services have gone through the roof and all he's doing is to share rice and SUVs to politicians.
One of his zombies here was telling me the other day that I don't know about governance but is this what governance is? Sharing money and rice to politicians is governance while the masses are suffering from hyperinflation of goods and services.
Please when are we going to revolt all this nonsense going on in this country, these people are already killing our dreams in broad daylight.

This ministry is a cashcow and should be scrapped. I still don't understand how a ministry will be created for the sole purpose of sharing money.
It's bound to be abused and looted.

candygist:
I Wass agreeing with you not untill I saw you mention Tinubu. Like it's today that Nigeria got spoiled.

He's making a very valid point, stop looking at everything from a tribal lens.
I agree with you that Nigeria dos not start getting bad under Tinubu but it is an undeniable fact that Tinubu has made it worse in all indices of governance.
You cannot deny a fact that is staring at you in the face. All you need do is ask yourself how much was a bag of rice last year and how much is it now.

PDPdestroyer:
You're free to relocate to Ghana. My success has never been dependent on government.... as you're complaining, there are many out there making it big without government support, no go do something useful with your life, dey wait for government handout

Do you have comprehension problem? Where in his write up did you see him asking government for handouts?
He clearly stated that he is working but hos salary is not enough anymore due to the hyperinflation going on and it's the same for almost all Nigerians making money legitimately.
You somehow found a way to change it to his fault as though he's not doing anything tangible with his life but waiting for the government.

Pecoleee345:
The problem is we focus too much on the presidency forgetting the one we should hold is the governor.

We should go Abuja to face tinubu while leaving the governors abi
I don't know if this governors are using jazz or we just have alot of educated illiterate in Nigeria.


Your governor is suppose to create job and better the likelihood of where you residing that why he get allocation every month.


Better start asking your governor what he is doing with your money and leave the presidency alone.

You are deviating from the real issues here my friend and trying to divert blame on your principal to the states.
While not exonerating the states for their incompetence, the very idea of sharing money every month to states is even wrong in a federation. This is because the states are also meant to stand on their own and generate their wealth.
To the issue you raised, the federal government is to blame for the massive inflation going on in Nigeria today. The states do not control the economy and they don't dictate the fiscal and monetary policies affecting the economy. Specifically, Tinubu's policy of floating the naira and fuel subsidy removal is what has caused the massive inflation going on in Nigeria today so why are you blaming the states for that?

postbox:
SOURCE:https://brandspurng.com/2024/01/02/nigeria-aims-to-raise-oil-condensates-output-to-2-6-mln-bpd-by-2026/

Another news on we shall, we will. This man is still campaigning after an election he claimed he won. He better gets to work and deliver on his promises.
You cannot be buying SUVs for your wives and politicians and be telling the people to bear pain of your ill thought out policies.
I have been trying to point out just one things Tinubu has done since he assumed office but unable to point at one, all he has done is to turn the economy upside down and still campaigning after election.
Just today I read that fuel will soon be going to #1200 and I nearly fainted, his zombies will soon come and tell you to bear some pain while politicians are feeding fat. What a useless country with a useless government.

Indifferent12:
Will dangote sell to Nigeria marketers in Naira or dollar?
Giving that the refinery is in a free trade zone

You know I have been laughing so hard when I see some ignorant people here saying Dangote refinery will solve Nigerian FX problem and reduce petrol price. A lot of people wallow in ignorance and self deceit to make themselves happy in Nigeria.
The only benefit Nigeria will get from Dangote refinery production is the reduction of freight cost which will not amount to NGN30 per litre.
I have been opportuned to see the guarantees and forward contracts backing this crude oil sales to Dangote refinery and the guarantees were indeed quoted in USD.
What this means is that Dangote will have to pay for his major source of raw material (Crude Oil) in USD, Dangote equally will sell to Nigerian major supplier from his free zone in USD and Nigeria's FX problem and quagmire will remain.
Aside the problem I stated with supply in USD, Dangote has debts to repay back to lenders in USD and the running operations including salaries of the refineries are in USD so why will he earn money from his products in another currency?
There's a reason Dangote deliberately does not want to refine pms yet and it's because he knows the government is still subsidizing petrol and he does not want issues for his refineries yet.
This year will be interesting to see how APC's supporters hope on Dangote solving the country's problem will be dashed.

favor914:
The truth is a very bitter pill to swallow, you lazy ungrateful things should keep waiting for a messiah.

The President in Abuja, 1 man should curb insecurity for 200 million people in a democratic system of Federal, States, & Local Governments where we have the opposition deliberately causing insecurity for political gains ?

Read what you wrote and ask yourself if you are not stupid. Tinubu swore an oath to protect the lives and properties of Nigerians as the C in C. He will be held accountable if that does not happen even the remotest of village in Nigeria.
The state governors or local government chairmen you mentioned do not have powers to control the police or armed forces but Tinubu does because he's the C in C.
So yes, Tinubu should be held accountable if security fails anywhere in Nigeria.
A lot of you don't even understand what you quote and are useless in life. That's why you come online to spit rubbish just because you want to defend your useless masters.

naptu2:

https://www.youtube.com/watch?v=PqdpOFfpnjs?si=Qit8XyuHxkdbQc5j

Governor Babajide Sanwo-Olu will today commission projects built by the chief of staff to the President, Femi Gbajabiamila. The projects include:

1) Femi Gbajabiamila Conference Centre at the Lagos State University, Ojo. (11am)

2) Dualised Babs Animashaun Road and Census Bridge, Surulere. (1pm)

3) Sam Shonibare Community Development Centre, Surulere. (1.30 pm)

4) Femi Gbajabiamila General Hospital, Iyun Road, Surulere. (2 pm)


The Speaker of the House of Representatives, Right Honourable Tajudeen Abbas, will tomorrow commission projects built by Femi Gabajbiamila and they include:

1) Femi Gbajabiamila Hall of Residence, University of Lagos, Akoka. (10 am).

2) National Open University of Nigeria (NOUN), Surulere Campus, Clegg Street (by fire station), Ojuelegba, Surulere. (Noon)

3) Bode Thomas Police Station, Census Area, Surulere. (12:30)

4) Femi Gbajabiamila Mini Stadium, Orile, Coker Aguda LCDA, Surulere. (1 pm)

5) Reconstructed Randle Avenue, Surulere. (1:30 pm)



Pictures 1-3) Femi Gbajabiamila Conference Centre at the Lagos State University, Ojo.

Picture 4) Dualised Babs Animashaun Road and Census Bridge, Surulere.

Ride on our next Lagos state Governor.

Ahmed0336:
I don't know why I have a feeling that Femi might succeed Sanwo Olu come 2027

It's not a feeling, it's cast in stone except if an act of God happens. Can't you see that Hamzat is so jittery and uncomfortable once he sights Gbaja.

TopBanter:
The country began "sinking" today abi? If I ask you to make suggestions on how to stop the sinking' in the seven months Tinubu has been President, since you are more intelligent and expert than the 'slowpoke' Tinubu and his technocrats, can you you do so here and now immediately without excuses?

Please do so let us all critique your expert and all-conquering suggestions so we can collectively mock Tinubu a failure even though I suspect it is you who will be mocked for 'simplistic ignorance' and lack of relevant knowledge.

Why are you passing that burden to him pls? It is Tinubu that contested election to be president and not him , so why should he be the one to fix Nigeria?
Some.of you are so used to suffering and bad leadership that you defend anything you see.
Even though I am not the president but in my own small leadership position I can list at least five things I will do differently that your messiah has not done. Useless slaves always defending their slave masters.

tunjijones:
U people should rest. So he shd resign because Peter obi did not win.

How come you pple accepted the result of Abia. State? Why didn't you reject that too.

See this one talking out of ignorance. Are you aware that even the Abia state election you mentioned is still in court and the result was contested?
There's no single election the fraud yakubu conducted that was not contested. You cannot promise one thing prior to election and do something else later your credibility will be tarnished.

Godszilla:
Fyi

Are you not aware that a lot of people here are daft and ignorant? They just come online to quote what they don't know out of their ignorance.
Stupid people.

Newsmic:

https://www.youtube.com/watch?v=Amyn1MQC7Vw



https://gazettengr.com/argentine-president-begins-flying-commercial-to-lead-example-in-countrys-cost-cutting-measures/

Freestussng,pakute and their fellow zombies should come and see how leadership is being done by example. In Nigeria, the drug baron in aso rock is flying private jets anyhow throughout the globe, buying SUVs for his wife and concubines, building mansion for VP with 15Bn while telling the citizens to enjoy pains.
May all of you supporting this useless government rot in hell.

Paramount01:
Wha is the role of federal govt? Who closer to the people? Where can impact of Govt be easily fealt? When your roads and Electricity spoil who is closer to you? Federal govt is to make all that is necessary available, Federal Govt have out palatives to state Govt,l to share how many state Govt share it, Federal Govt gave bail out, how many states share it? The positive impact of Govt is easily felt by the people from local govt and who controls local govt?

It's either you are deliberately acting stupid and ignorant to prove a point to your masters or you are indeed stupid.
It's the constitutional duty of the federal government managed by Tinubu to manage the economy well and provide security to the people. And in those two areas Tinubu has failed woefully. Now you transferring that responsibility to the states is what I don't understand.
Is it the state that manages the economy? Do they control inflation or manage exchange rates? What about security , who is the C in C?
You miscreants will just come online to change narratives to shift blame on your principal. Nonsense.

Jonjam269:
Obirodents have turned Nairaland to Wailingland. Losers

Are you people just silly or what? If you think this is just about election and obidients then you are just too naive. How old are you? Have you been to the market lately? Do you know how deep the hyperinflation going on is? So the people that are not obidients should suffer in poverty and pernury because the government is incompetent and cannot manage the economy.
This is not about election and people's choices in the election anymore but about the lives of Nigerians. Very soon APC will get that insurrection they are looking for and it will happen in 2024 if things continue this way.

4Play:
I don't know much about the crude oil supply arrangements to the refinery but I doubt the refinery will make much difference to Nigeria's currency depreciation issues which I think is driven by high inflation and lack of general confidence in the economy.

Supposing supply is via NNPC to the refinery, wouldn't that mean forgone oil export dollars? In other words, oil that could have been exported for forex dollars is simply diverted to a refinery in Lagos leading to less forex inflow into Nigeria.

The thinking is that lower import of refined crude will curb forex outflow/dollar demand. That is true. However, I suspect that much of the refinery's revenue will find its way out of the country as Dangote, just as is the case with the cement business and indeed many Nigerians/businesses, prefer to maintain financial assets offshore in more stable currencies like the dollar or Euro.

The net effect on naira depreciation will be close to zero. What's driving the optimism is Nigerians desperate tendency to seek for magic/easy solutions to complex problems. Next year, they will be looking for other sources of optimism after the hullabaloo about the refinery comes to nothing.

God bless you for this submission.
This was exactly what I stated earlier on this forum on the FX matter and some ignorant people called me a prophet of doom. I wish I can drag that nairalanda or whatever he's called into this matter.
A lot of oil money presently don't even circulate the Nigerian economy. Almost all the big players have FX just lying fallow in their account and will never convert it to naira.
Same thing Dangote will do and even at that he has loans in FX that he must repay. So how some gullible folks think a private investment will solve the country's FX problem is still a source of worry to me.

There are still a lot of mystery around this crude supply to Dangote by shell. The global pricing for crude oil is denominated in USD hence why it's refered to as petrodollar. Now if the forward contract between Dangote and Shell is denominated in USD it then means Dangote will have to pay Shell in USD for the supply.
The only way Dangote will pay Shell in USD is if he sells to local petrol supplier also in USD which is why I am laughing at those thinking this arrangement will reduce pressure on FX.
My expectation is that Dangote will get her supply directly from NNPC and they can work out a way of making payments in NGN.
I suppose this is the reason the clueless NNPC MD already sent a disclaimer that nothing will change in the pricing of petrol.
I will be waiting till next year to watch and see how events unfold.

nairalandankrah:
Says, Saboteurs frustrating Tinubu’s economic policies...




https://thenationonlineng.net/saboteurs-frustrating-tinubus-economic-policies-says-senate-leader/

Look at what someone's father is saying. Saboteurs should be held responsible for the failure of a whole government.
Shame is catching me for this man I swear.

Kingrshd3:
Some people still dey abuse APC or Tinubu when PDP and LP also support the naira redesign even with the subsidy removal that brought hardship to the nation ...

So who is a good leader now among Tinubu atiku and PitObi 🤔

If you think naira redesign is the cause of your problem today as a Nigerian.
Just look at yourself in the mirror and say you are big fool and your education is a waste.

lexy2014:
how does defending the naira against the dollar mean that the government is "subsidizing the lifestyle of the majority of the wealthy"?

who are these "majority of the wealthy" you are referring to?

has not defending the naira made them poorer?

Are you not aware that majority of Nigerians are foolish? They believe any lies being churned out to them by politicians or their pastors. This forex lie is the same lie they sold on subsidy removal, that it only benefits the rich whereas the major beneficiaries of subsidy is the common man on the streeta who enjoys cheap fuel and reduced transportation costs which also keep prices of goods and services low. But how the government used propaganda to make some idiots believe subsidy only benefits the rich is what I don't understand, today that the subsidy has been removed ask yourself if you have fared better and how it has impacted you positively.
It's the same narrative for the dollar, with pegging of the exchange rate in an import dependent economy. The prices of goods being imported whether directly or indirectly are kept within our reach and populace can afford it thereby making our purchasing power good.
But today there is hyperinflation in the land on every goods and services food, egg,chicken just name it are all dependent on FX but some foolish ones are still saying they are ok because the government has spinned their usual propaganda that it only benefits the rich.
Honestly, Nigeria is full of low minded people. What they don't know is that the reverse is the case for the rich and the useless politicians they support, the more the naira depreciates the better the purchasing power of the rich who has stockpiled the dollar already. I also earn in FX and more dollar loses her value the better for me too but I just pity the poor ones who have been reduced to nothing.

Putindbutt:
As long as the President is no longer using about 2billion dollars to defend the naiqa everymonth, it is fine. let the market forces determine naira value and we must deemphasise our excessive demands on dollars by seeking alternatives.

Look at what this ignoramus is saying. It is fine for naira to keep depreciating against the dollar, so to what end is your goal of you want naira to keep depreciating then what do you intend to acheive in the long run.
What do you think is responsible for hyperinflation going on in Nigeria today? You think it's fuel subsidy? It's this Naira depreciation that's causing the hyper inflation going on in the economy. The people's purchasing power is at its lowest, yet you are fine with naira to keep depreciating because one fool in Abuja promised you to suffer today for an utopian better tomorrow.
Better wake up and smell the coffee, there's no better tomorrow that you are suffering for today. The only people enjoying today and will enjoy tomorrow are the politicians and you their willing slaves will keep suffering if you don't do something about it.
Better wake up

Layi4real:
if u think it is very easy for Tinubu to build this country up Nd make it a working nation within this short period of time then try building up Ur life first Nd achieve all Ur life goals within a short period of time too.....
many people here can't even control there family well not to talk of controling an organisation

Don't you think it's stupid to be comparing how people run their family to how Tinubu is running the country?
It's like someone applied for a job alongside other candidates and after 6 months he's been found to be incompetent but your excuse for the person is that others should come and do the job if it's easy. Why did he apply for the job if he knew he couldn't do it?
So far Tinubu has displayed gross incompetence in the way he's running the country's economy.
And if your excuse is he met a mess on ground, is he not a part of the mess he met on ground. Is it not an APC government he himself is a part of that handed over to him, so what exactly is you zombies point of argument.

occfx:
E dey make cloth not to fit man... Me I just forget am there. By the time you reach 30s, e no go bother you again. If you wan do surgery go abroad make the remaining quack doctors wey dey here no cut your nerves commot. Another reason you should leave it be say girls like it. If u get woman wey like to suckk am, you go enjoy yourself well.

I agree with this one because most ladies actually have lesbian tendencies. When they see a man that can knack them very well and also fulfil there lesbian fetish they go overboard.

airsaylongcome:
Support does not mean approval. Approval would mean a document was signed by the president, in his regular signature

Lol
Look at this slowpoke trying to twist narrative to his fellow zombies.
Read what you wrote, what does that even mean? Support doesn't mean approval, so if you support something you didn't approve it niyen oh. You better enroll to another school in case you went to a school in the first place.