₦airaland Forum

Fixey:
Dude, Dangote started from license just like the others. Your comment says alot about your awareness. Do your digging. Other refineries are in the pipelines. There's a Yoruba billionaire too in the mix with around 450,009 barrels a day capacity, BUA with 250,000 barrels a day and much more

. If you don't throw your nets wide, stop commenting like you know much

License does not equate action. Dangote so far is the only one to be brave enough to take action.

I'm amazed that with what you have experienced in Nigeria you are basing argument on license. And you claim to know so much.

Everyday newspaper headline is govtbto build this, govt to establish that. How many of them ever get done. Stop being naive.

Aconomist:
Article: Dangote is not your friend

For some people, the production of cement within the shores of Nigeria is a thing of pride. They point out to a Nigerian producing for Nigerians as the highest form of patriotism. But policies should not be judged by the ‘feel good’ factor, rather they should be measured by their impact on the people.

It would be recalled that the Nigerian Government in its attempt to boost local production placed a ban on importation of cement in 2001. President Obasanjo seeing that the objectives were not being met lifted the ban in 2007, only for the ban to be placed back again. Give or take, we have had 18 years to evaluate the impact of the ban. The overwhelming consensus is that Nigerians pay among the highest prices for cement in the world. A quick search on Konga shows a 50kg bag of cement costs $7, while a 2016 World Bank report (Page 61) on competition in Africa reveals that the average global cement price is around $3.4. Almost two decades after, Nigerians pay double the global prices for the price of cement.

I hear you retort that it’s the tough business environment that has made things, cement inclusive. And that would be true if the profit margin is not exorbitant. In 2017, a Bloomberg Intelligence report showed that the average global profit margin for cement companies was 17%. For Dangote Group, the profit margin was 42%. That’s more than twice. I just checked the result for 2018 and the profit margin has shot up to 64% .
If conditions are difficult, then the profit margin should shrink, not explode. It goes without saying that it’s Nigerians who are paying through their nose when they could easily get the product for much lesser.

This World Bank report, on Page 64, shows that Dangote has been granted exclusivity to materials, including limestone used to produce cement.
Nigerians don’t understand that when they mention cement production in the country as a pointer to why banning things is good, they are indirectly encouraging a system of exploitation.

Every single time a Nigerian business man tells you Nigeria should ban importation of something without calling out the problems which necessitates importation of that product in the first place, know that they are thinking of enriching themselves at your expense.

https://thowsyne.medium.com/dangote-is-not-your-friend-b0b9303ae662

Not sure where you $3 cement comes from o! Also note that 80lb is about 36kg

Fixey:
Okay
But is it the same 2x grade?

So you think Yankee has lower standards Nigeria? Not likely.

Fixey:
.. Hahaha. So you think. That's what the media wants you to believe. There are other macro refineries in the pipeline and lots of modular refineries. Do your research. For mega refineries there are over 20 licenses and much more for modular refinieries

Guy na licence we want chop? Haven't we always given license? Did any get built? Really!!!

Modular is good, but can't solve our demand anytime soon. Dangotw can refine 600k barrels. Walter Smith is refining 5k barrels.

Aconomist:
Cement costs 3 times more in Nigeria compared to the U.S. as do cars, electricity, etc. You are a foolish little monkey.

Look up. I just posted cement price from Home depot 3 posts up. Put your own evidence of cement one third the price in US.

Fixey:
So many are undergoing construction at the same time. Few others have licenses but have not started building.

Only BUA is showing any serious sign of building a full scale refinery. No one else. It has not even started any construction.

See price of 40kg bag if cement for Yankee o

Originalsly:
Dangote is suggesting only those with active refineries be granted licences to import fuel when the demand is greater than the supply. This as a means of encouraging others to establish refineries locally. How will this be trying to monopolize fuel? ... when it will bring competition and growth in the local refinery market? .... back up your statement ... how is this trying to monopolize the industry?
What is the price of his cement in Nigeria?.....and what is the price in other countries where he has plant?
When we make statements we should be able to back them up.

Well said. I have researched online price of cement where Dangote has cement plant. Prices are comparable to Nigeria. In some cases a bit cheaper and in some cases a bit more expensive.

Fixey:
Hahahahahahahahaha. Legit question



Would all refineries undergo turnaround maintenance at the same time?

Is his refinery not the only one we have?

Godarz:
I think the problem is Nigerians really want cheap fuel .

Arguing that it costs the economy long term means nothing to them...cheap fuel, even if it bankrupts the economy

I totally agree with you. Cheap everything. I always argue that the issue with Nigeria is not that things are expensive, its an issue of incomes are low. The income side of the equation is what should be addressed. Rent, petrol, food, transport , taxes etc are much less in Nigeria than abroad.

3 bedroom bungalow in Houston is like $1500 a month (N570k per month or N6.8mln per year) in very normal area o - equivalent of Yaba.

Agboriotejoye:
This guy again
I thought I already educated you that our refineries didn't go down because of low prices but because of mismanagement by the military govt of IBB who gave a standing order that all maintenance works should not take place without his express approval. This led to inability to carry out maintenance works as and when due.
There's a belief in certain quarters that the order was deliberate to kill our local refinery systematically and was part of backhand agreements which led to IMF loans then.
If this belief is true, then the guy you're discussing with may have a point after all

Your assessment of the problem is very flawed and not correct. The most flawed part is the part of backend agreement with IMF. We need to stop looking for cheap scapegoats for our problems. Countries like Singapore, Malaysia, Vietnam, China, Brazil, that operate sound principles and thrive dont relate with IMF abi.

There are alot of factors that contribute to the success and failure of something. Its possible that with proper management of our refineries,we could make subsidised petrol work, but the point is from an economics point of view, is subsidy even a policy we should he adopting? Considering how much of our resources go into it. If I earn N1000 and use N350 to subsidise, its not the same as another country that earns N800 and uses N20 to subsidise because their population is only 10mln.

Think of the issues like a proper educated economist, not a casual observer.

Besides IBB left government over 25 years ago. We've had democracy since 1999. So why have refineries not worked since then?

Godarz:
If you actually read the article, the importation would happen when the refinery is undergoing TAM or when demand exceeds supply.

Of course, we can have far more refineries if Government allows marketers set the price of petrol.

Don't mind them. They refuse to read simple article. If Dangore refinery wipes out importation today, but demand grows 50% in 5years, will it still be able to meet up? This is simply a solution that is looking at 5 to 10 years down the line, yet people are already wailing. However if other business men also build refineries, its will be an eventuality that will never occur.

Besides by 2040, there is a good chance almost all cars produced globally will be using electricity.

thebosstrevor1:
Reno is just an hypocrite.

When his former boss was there, he should have made this comparison.

Kidnapping and bomblast was the order of the day when Reno boss was the president

What he has said now is still the truth. Focus on the message not the.messanger

deeptechcool:
Now use this analysis to explain why we won't buy petroleum at the highest rate when the refinery is completed.

We use trucks currently to move produce around the country. So if Dangote does the same, nothing would have changed to influence the price.

However the fact that we are no longer paying dollar related refinery salary cost, dollar related logistics and pipeline cost, dollar related shipping cost will help ease pressure on local petrol pricing, even if naira devalues.

Asides the feedstock, all of Dangote's other costs will be in Naira and not immediately influenced by devaluation.

Besides we are unlikely to pay the highest costs in the world because the petrol price in many countries has a heavy tax element but in. In UK, almost 50% of the price you pay is a tax. Same for most of Europe, but to lesser degrees. Thats why a litre of petrol is £1.24 in UK (N658), while in US where tax element is very small, its $0.60 (N230).

If diesel which is more expensive than petrol and unsudsidized and fully deregulated and has expensive shipping and foreign refinery cost in it is still N230, then locally refined petrol cannot go beyond that.

sulaak:
Madness, oil is Nigeria's primary forex earner, so selling our crude to him in Naira would be suicidal.

Not necessarily. The refinery will produce far more than Nigeria needs and the remainder will be exported and Nigeria forex earnings go up that way. Note that for forex earnings its important for Nigeria as a corporate entity not necessarily the FG. There is a big difference. It does not matter who in Nigeria earns it. Do you think FG in America earns all the forex America needs? What Apple earns selling their products abroad is maybe more than American govt earns directly, but it all goes towards influencing dollar value.

Nigerian FG spends most of its money in Naira paying salaries. So if companies start to earn the forex Nigeria needs, nothing spoil.

OyinO:
What happened to granting licence to Modular Refinery owners and operators in Southsouth? Chei

First of all Walter Smith modular refinery is working not so?

Secondly most of those who for modular refinery license did so for fraudulent reasons. They thought they would be allocated oil, which they would in turn sell without doing any refining.

Operating a refinery, even a modular one, is very technical and requires a lot of planning and brain work, which Nigerian business men don't like. They always like easy buy and sell business, what there is little thinking required. And that goes for most Nigerians too. All we know is how we can get shop, so we can be trading. Or to build house for easy rent. Nothing creative.

deeptechcool:
Can you please use this analysis to explain why Nigerians buy cement at the highest rate in the world despite having limestone in abundance?
I want to learn.

A lot of what you pay for in price of cement in Nigeria is due to the inefficiency from the factory to the end consumer. Here we use trucks, which in turn suffer from bad roads, police on the roads, area boys etc. Will all the truck drivers not be paid? Will all the trucks not be maintained? In developed countries there is non of that. In Europe and America, cement is transported by rail. One fully loaded train will carry what 100 trucks will carry, yet it has one driver. All what I described above alone can add up to N500 to the price of a bag, if not more.

Emary:
So the plan is to sell this man our crude at cheap rates, only for him to resell the refined products to us at even higher rates than importers currently do? Real monopoly. Well, at least after this, we should hear no more about subsidy.

https://www.proshareng.com/news/Oil%20&%20Gas/FG--Dangote-Refinery-Will-Sell-Petrol-at-International-Price/53251

The fact that crude will be sold to him in naira does not make it cheap. If crude is currently $60 in international market and our exchange rate is $/N380, that means Dangote will buy a barrel of crude at N22,800. And this will change based on the variables of international price and exchange rate. The main benefit though is that demands for forex goes down. Since element of the cost input such as salaries of refinery staff, logistics, amin cost etc will now be in naira so we are less exposed to the currency devaluation, but not by much as we will still be exposed to the extent of international price and exchange rate.

Dangote will therfore determine his petrol price in naira based on all of the above.

OkanlawonB:
Do you people care to know which arrangement was made for evacuated trucks to get an alternative suitable parking Place. These are some people businesses and means of livelihood. We should also consider the adverse effects this action may habe in the trick owners

What exactly is this one saying

Coronavirus84:
She is the head market women in Lagos state presently

And so what? That is a cultural title, not a official government one. Who voted for her and have her constitutional power to levy taxes? Its the same sort of stunt Patience Jonathan was trying to pull by ordering governors around.

Thank God for Ameachi that stood his ground.

Beblessedbaba:
These traders are not smart at all..

Very wrong move.. These guys did not learn anything from Ladipo market.

Next move: The authority will demolish some part of the market..due to several reasons..
Landuse, encroachment, abuse of property and over riding public interest.

People like you are dangerous. Always making excuses for why the right thing shouldn't be done. At least they have won this battle legally and in all ramifications its the right judgement.

If government comes to chase them from there, that should be looked at on its own merit.

The truth is also that where computer village is today is meant to be residential, like it or not. Government would also be within its legal right to sanitise the area.

Bottom line, EVERYONE should follow the law and rules.

Microwhy:
500K? Please next time don't rush to comment....
Solar Power Solution that will comfortably power 2 AC and Fridge will cost you nothing less than 5million ,the AC must be inverter AC and the fridge must be a power saver PWM..

I believe it’s supposed to be for rural dweller who need just lights and maybe a fan and radio. Though to be honest they should be planning or expecting even rural dwellers to want to add a tv and fridge. But I guess it’s reckoned they just won’t be able to afford a solar system that can power such

Officialgarri:
I still don't know why Africa is still getting deceived that Solar is the way for for Electricity just because we have abundance of sunlight.

Any deep thinker and non conformist will realize that it's all a scam

Solar should be the most expensive source of electricity

Not sure you know what you are saying. Globally, solar and wind are pretty much the cheapest forms of new electricity at the moment. The only issue they have is that they are not sustainable 24hrs of the day.

arikogomez:
Delta state should revive our warrior airport, how can somebody want to travel through he must travel to Asaba before he can use airline, where as we have one here in Warri, Our airport revenue is going to Edo state becos people in Warri, Sapele, Ughelli, Udu prefer Benin Airport becos is close than Asaba. Govt make una nor crumble Warri to Build Asaba

I believe warri airport is not functioning because its not viable. Not enough planes land there to make it viable. Ever since Shell left Warri, the activities in that town have died down considerably.

Sonnobax15:

The earlier osinbajo realises that he has been reduced to nothing but an audio v.p,the better for the studio in aso rock....

So Tay nobody pay heeds to what our v.p says anymore...just know say our country don enter flight mode.

Pretty much all VP's the world over are figure heads. How much have you heard Kamala speak in public since the 20th? So what magic are you expecting from Osibanjo

ogododo:
https://dailytrust.com/after-recession-economy-on-stable-growth-zainab

Which diversification efforts. Is it not natural that non oil sectors that were more battered by lockdowns etc recover faster!?

This government has zero diversification!? When there is real effort at diversification, we will not need to be told. We will see and feel it!!

adenigga:
https://m.punchng.com/News/My-govt-will-empower-one-million-youths-annually-Soludo

I would like Soludo to be governor. If for no other reason but to see how an intellectual and critic of other governments will in turn govern a State that is smaller and arguably easier to run than the Nation.

nnadychuks:
Paying isn’t the problem. You don’t have sense, you’d have known our leaders only want to fill their pockets from our revenue realization

..


Then why no not so something about the corruption. That is the real issue.

Arjeeni:
What exactly the Govt will be responsible for in this country?

We are providing common water for ourselves.
We provide house � and places to stay for ourselves.
We pay heavily to access education at all levels.
We are getting food not at subsidising rate óò but through our nose �.
We have been paying to get job since.
Electricity nko, they are saying we have to pay more for darkness.
Now road is going be concessioned.
Very soon tax will be paid to get wife or husband.
Lastly when one need to enter there another tax for sure.

Wait for government to find wife for you and help you pay bride price.

In UK you pay for water supplied to you - not free.

In UK, you pay for your food. Notbfree and not subsidised

In UK you pay for your electricity from private companies. Not run by government or subsidised.

In UK there are also some roads with tolls.

In UK VAT is 20%

In UK 63% of petrol price is tax element.

The only area you listed where I agree UK government subsidises is education. But then that's where your taxes go to.


Other things you didn't mention.

In UK there is radio and TV licence.

In UK there is council tax

In UK income above £50k per year is taxed at 40%

Airports are run privately and not by government

Most Train services are private and not government owned.

So what then is UK government doing with all its resources??

pretyval:
Divide the toll gate same way you divided train stations..... E don reach time to collect money, you remember south east and south south.... You carry train dey go Benin republic wey no get economic might as Onitsha or Nnewi.... Stupid leaders

Sebi there is new rail from Warri to Ajaokuta. Na your share be that. After all the rest of the country has only 2 also. Lagos abeokuta ibadan rail and kaduna Abuja.

What will North West, North East, Middle belt talk

Whois:
I saw Lagos- Abeokuta express way on the list. So they Plan to toll the small lane left after they have occupied the express with brt lane. Anyway they should at least think how the toll plaza won't cause traffic on the road users like that of lekki. Abeg

All things equal, the toll station will be outside of town between lagos and ifo, not in Lagos metropolis

LordOfTheGame:
Toir head is correct. You see how they strategically chose the major roads that Easterners mostly ply to reach the East to be rolled but left out the major roads in the core North. The war is on different faces and patterns but we the southern people and indigenous people will surely be victorious.

Dude calm down and do not bring ethnic coloration to this. There are many roads in the SE and SS that are not here. East west road is not on the list. Neither is Enugu - Onitsha or Portharcourt - Owerri , or Warri - Benin or Asaba- enugu