₦airaland Forum

For the 100th tone, Dangote has dominant market share but not monopoly!! A Google search indicates he controls 65% of cement market. That IS NOT A MONOPOLY!

Google and Microsoft are more monopolies than Dangote.

And this he was given monopoly in the 80s is nonsense. Dangote first ventured into cement in the 90s when he bough Benue Cement as part of government privatisation. Others also bought at the same time. I think Nkalagu and one in PH and Edo were sold at the same time. Not long after he constructed Obajana and that was the game changer for him. Obajana was so big that it single handedly catapulted him into the dominant force.

For info WAPCO (now lafarge) had been there way before Dangote since the 70's or so. Their plant at the time Dangote was coming up in the 90's was quite old, but rather thN invest, they did not.

When Obajana came on stream with like 3 times capacity and with a brand new efficient plant which was of course much cheaper to operate, it meant that he could sell cheaper and drive others out of business.

Thats why Lafarge had to build a modern factory at Ewekoro to compete. In fact I think they shutdown the old one. But what they built was only about 1.5million metric tones, meanwhile what Obanajna built was like 6million. Surely you understand economies of scale.

SegFault:
Number one it's not your money and therefore not your business number two it's for the people who come to visit so keep your opinion in your pockets.

Idiot!! It actually is our money as tax payers. Only someone who is stupid rich with money he didn't work for would do such a senseless thing.

And dont give me that nonsense of he worked for Shell. Shell can never pay you enough to spend money this way. Unless he stole money from there as well.

obailala:
When Dangote's refinery is completed, Nigerian govt will stop importation of petroleum products completely and the govt will completely deregulate the downstream sector (this has already even just happened). Being basically the sole supplier of such an indispensable product (other private refinery owners would supply less than 10% of Nigeria's demand), Dangote would unanimously fix the pump prices and it wouldn't be less than N250/litre. In less than 5 years, he would have recovered his entire investment and in the next 5 years again, he'd be competing with Gates and Bezos at the top spot, and the gross stupidity of Nigerian governments (past and present) would be exposed clearly for the world to see.

So if Dangote is selling for N250 and I could bring in from South Africa for N180, sourcing forex by myself, why would FG stop me. Don't create unnecessary conspiracy theories. Dangote is just a better business man that has better vision than most. Being connected helps, but that is not all of the story.

She isn't a Nigerian. She's an American of Nigerian decent.

RealEzee:
we don't have a money problem but a management problem here, we keep on making budget yearly and taking loans without immediate effect in the economy, all Nigerians including myself ask for the basic things be met by the government and we will thrive, we talk of taxes daily yet what have they done with it really? I have lost trust for the government unfortunately bud.

Bros, seems you still have that mentality that Nigeria is rich?? No doubt our money from when we were rich has been squandered and contributed to our poverty of today, but as at RIGHT NOW, Nigeria is a poor country!!!!

FG budget for NIGERIA of N8trln is $20bln. CITY OF HOUSTON budget is $5.1bln. TEXAS STATE budget is $251bln!!!!!!!!!!!!!

Meanwhile population of Nigeria is 200mln, population of Texas is 29mln!!!!!!!!!

eagleu:
I bet you have never heard about Ibeto cement?

They are still existing are they not? At least they have a functional website as of right now, so I assume they are?

The website say they are building a 5mln tonne cement plant in Ebonyi. This is what we need. It will make Dangote less dominant in the East. By the time they finish, Dangote share drops to maybe 55%. Thats how these things work.

No doubt Dangote has connections in govt, but big business people that donate to Trump and Biden, what do you think they donate for? Fine the system still enables better playing field in Yankee, but you think there arent' those complaining about the practices of Apple, Google, Microsoft and co??

jesmond3945:
but you know cost of drilling 440k barrels is in millions of dollars. They have to sell to Dangote and make some profit. Dangote would now refine and sell to make some profit. The issue is that Dangote used our subsidized dollars to build. Probably he deceived the govt.

Don't mind them. They think the 400k barrels is free. Crude we spent millions to find and bring from the ground should just be given to Dangote free to refine for the sake of cheap petrol?? Oil that has market value of $16mln PER DAY!!!

Then they wonder why we have no roads, good schools and hospitals etc

eagleu:
You're either an economic illiterate or simply blinded to the Dangote cause!

Government doesn't subsidize your Delta ticket, because Delta has many competitors like United, KLM, BA, etc plying the lucrative route.

Government killed off Dangote competitors in cement, sugar, and flour, now the corrupt minister is the one parroting Dangote 's expected pricey products as if she's doing a jingle for Dangote!
How bad, corrupt, and insensitive could that be? Only in Nigeria.

Dangote is a major player in those sectors, but he's not the only player. For cement there is Lafarge, Bua and a few others. Dangote has a 65% market share in cement. The other 35% should also invest more. Lafarge was in the market long before Dangote, but they refused to invest. They were happy with their one plant in Ewekoro. When Obajana came with almost triple their capacity and far more efficient plant, they scrambled to build a new plant in Ewekoro. If anything, Dangote forced their investment.

edoairways:
What most Nigerians fail to understand is the fact that there is change in technology. Few years from now, the demand for petrol cars will reduce

At least if that occurs it becomes Dangote's problem and not the FG's.

Besides that analysis is faulty. Asides petrol, he will produce aviation fuel, petrochemicals for pharmaceutical and plastic industries as well as fertilizer. All of which there is good demand from West, Central and Southern Africa. And petrol still has a long way to go in Africa. Even if all cars become electric in Europe in 2030, Africa will still be using the junk petrol cars for a while longer. Dangote would have broken even before then.

jtjohn:
This country self...Dangote trying to monopolize everything.

It's not Dangote's fault that Nigerian businessman know nothing about large scale technical businesses that require a lot of attention to detail and would rather not take the risk.

All we know how to do is trading and rent seeking businesses, where we stand as a middle man. i,e buying and selling, building house and renting it out, collecting contract and selling it etc - no real value add. And to be honest it's not anyone's fault. It's a symptom of poor education system, lack of government support, lack of faith in Nigerian bureaucracy, poor infrastructure, corruption etc

Simplyleo:
Forget it.

It doesn't make any sense for Nigerians to be buying fuel at a pump price from Dangote competitive with international prices. What then is the benefit of Nigerians by reduced forex for him for the importation of the refinery equipment?

Besides, Nigeria is an oil producing country, meaning crude oil is nearby, he doesn't have to transport it from another country. Additionally, the refined products doesn't need transportation to Nigeria.

The benefits are as follows:

1. Reduced requirements for forex to import crude.
2. Direct Jobs for those who work there
3. Technology transfer
4. Better exchange rate stability (which affects many other things)
5. frees up government money for other things
6. Eventually they will pay taxes to FG, improving their revenue. FG can't tax profits made by a refinery in Houston
7. Indirect ancillary jobs from businesses supporting the refinery
8. Benefit and wealth spread to land owners in that axis. Land that would otherwise have been significantly less valuable.

That is how one big investment can spur economic activity. Which is why governments that know what they are doing provide conducive environment for companies. See how cities in America were literally fighting for Amazon to site a second headquarters in their city.

Did anyone really expect him to do so?

If he sells it lower than 'international price', he bears an opportunity cost and doesn't maximise profit like a business man normally would

If FG sells crude to him below 'international price' , then FG also bears an opportunity cost and is in effect subsidizing and does not maximize potential revenues.

A CASE FOR WHY FG SHOULD NOT MAXIMIZE ITS REVENUES AND NOT SUBSIDIZE:

The world is currently witnessing a peak in the demand for crude oil. Medium to long term forecasts sees demand for crude declining consistently from 2023 or so (depending on the model). In fact, due to COVID-19, one could argue that it has started already.

And where is this decline supposed to come from? Wind and Solar are the fastest growing electricity sources in the world today. This means that many developed countries are replacing gas and heavy oil fired turbines with Solar and Wind. Electricity utilizes about 8% of crude oil.

The real big deal is petrol. Many European and Asian countries are planning significant restrictions or outright bans of internal combustion engine (ICE) cars from 2030 - 2040.

https://en.wikipedia.org/wiki/Phase-out_of_fossil_fuel_vehicles

Road transportation utilizes 50% of crude oil. Imagine what happens in 2035 when this happens. A good chunk of crude demand is going to evaporate. . The real shock to the system will happen when America announces it's own ban on new ICE cars. America is the driving capital of the world. From passenger cars to trucks and SUV's to heavy articulated trailers.

All this means that crude has a potential to become as cheap as $20 -$30 in the medium term. In fact, in many cases it will make no sense to continue production in the most expensive areas, hence you hear a lot of talk by NNPC of reducing operating cost. Unfortunately, we make operating cost high in Nigeria by our own actions (NDDC that collects 3%, Security, Corruption etc)

This means that Nigeria is looking down the barrel of reduced earnings from crude by 2030, so it makes NO SENSE to fritter away what we make now in the name of subsidies.

Nigeria needs ALL the money it can make now to diversify it's economy. The removal of subsidy in the electricity sector is also in line with this. If we do not make our electricity sector bankable before 2030- 2035 and almost all new cars are electric, where will we get the electricity to power it? And this will be happening at a time when FG revenues would have significantly reduced. It's a situation the FG has to GET OUT OF NOW!!

Even the mighty Saudi has seen this handwriting on the wall and a notoriously stubborn country that believed it had all the money in the world in finally taking steps to diversify its economy and improve productivity. What has Saudi done in the last few years?

1. Allowed its women to drive in order to enable them to be more productive and add to the economy.
2. Reduce it's subsidy on petrol
3. Introduced taxes for citizens, albeit small.
4. Introduced relaxed visa for outsiders for tourism purposes
5. Invested massively in solar power generation facilities

UAE is a country that has done this already. Yes they have oil, but they used their oil wealth over the last 20 years to invest in infrastructure and a well designed and planned country. Now asides oil, they have a vibrant global airline, global shipping sector, global financial services sector, global tourism sector, solar power sector and even educational sector (many universities have a Dubai center) and relaxed residency visa requirements (now with guaranteed income of $5k a month, you can get a retirement residency visa). So when oil reduces significantly in value, they will have a semblance of an economy to power it forward. Nigeria unfortunately has NONE of the above!

This is why Nigeria can no longer put it's head in the sand and basically flush money down the toilet in the name of subsidies. We are a relatively poor country. Oil brings about 60% of revenue and 90% of forex. Our tax base is really low. Even worse for Nigeria, a lot of our economic activity happens at the informal, subsistence level where it's very difficult to track and tax. Brazil a country with about 5 times our GDP has a budget that is like 36 times bigger, because they are able to generate better tax revenues from their more developed and more formalized economy.

Not really worth the hype!

Too much traffic
Filth everywhere
Too densely populated - everywhere you go, too many layabouts everywhere
Poorly planned - no proper separation between residential and commercial areas.
Air pollution - lots of smoke from vehicles, particularly commercial ones

She should be careful though, make DSS no come arrest her.

This is the kind of petty thing our security agencies will take interest in because it's Abuja.

And this is the same Rivers that Gov Wike says is safe and Oil companies should come and put headquarters?

Unfortunately our leaders don't know much about economics, international business etc. They think it is by fiat. Its not by mistake London, Hong Kong, Singapore, Dubai etc are economic centres. They do what is necessary by way of taxes, infrastructure, human capital, rule of law, security etc to make their locations a hub. Not by one governor or mayor giving order.

SegFault:
Brazil runs free universities I hope you Know

Which caters mostly to the privileged white elite!!

https://www.businessinsider.com/brazil-has-tuition-free-college-but-it-only-serves-a-portion-of-its-citizens-2015-6

Meanwhile are you even joking with Brazil?? Not take small eye look that country o.

Brazil’s government budget is $779bln. Nigeria is $22bln, yet our population is almost exactly the same. That’s why I always say that despite our supposed oil wealth, Nigeria is a relatively poor country.

https://en.m.wikipedia.org/wiki/List_of_countries_by_government_budget

Their annual budget level is 9th in the world, our is 79th. Most Nigerians don’t know much about South American countries because they are not always in the media like America and Europe. Brazil is in the next level below G7. Nigeria wouldn’t even make G100.

Their GDP is $1.8trln our own is $400bln. They are far ahead of us developmentally.

Focusmind:
My people, work harder so that your children do not near the gate of any Nigerian University. As for me, the project is on course and I am doing everything possible to realize that dream for them. Our government and those in power have all left us behind to rot and kill ourselves.

Their children are in Universities abroad, spending our money. I pity the poor masses. However, all blames should not go to the government alone. Nigerian people are the worst when it comes to cleanliness and maintenance. We lack maintenance culture. Even if you build a world class hostel there, come in years time, you will be shocked by the level of degradation.

Students in Nigerian universities are one of the worst indiscipline, forming G-guys and hardman and not maintaining decency and decorum.

Not just students. Generally we Nigerians are filthy and dirty. Look at our markets, roadsides etc. All filled with junk. People eat and second nature is just to throw the wrapper on the floor.

JAMZ1:
https://www.google.com/amp/s/www.thecable.ng/photos-the-decayed-infrastructure-serving-as-unn-hostels

This is the opportunity cost of almost free education. I have rarely seen anything that was dirt cheap and also good quality. You can't eat your cake and have it.

While there is also the fact that the university and hostel management could be more competent, but that's what you get with grossly subsidised education in a country thats almost broke.

Is Covenant like this? Is Afe Babalola like this? Is Babcock like this? Is Redeemer like this? Is Igbinedion like this?

Nuff said!!

Cryptofxt10:
Haaaaa Taye Taiwo still dey play ball?. Him twin sister dey celebrate 45years old, him dey celebrate 31 years old something is certainly wrong somewhere

But funny enough he isn't really looking old in the picture. Or is the gist about his age wrong?

Slawormir:
Damnnnnn niggarrr
Beautiful
No doubt we are the real niggarrrs of Africa
We will continue to show those low budget asss Moda fuckkking noisy neighbors of ours called Ghana and south Africa that we are the real niggarrrs of Africa

Though i woke up on the right side of the bed....but the need to still dragg two or more tie of weed can not be over emphasized
Light up my weed...there is gonna be light at the end of my weed anyday anytime twice on Saturday

Unfortunately we ain't no niggarz nothing. In 5 years come back and look at this airport and then go look at OR Tambo in Johannesburg or kotoka and tell me which one looks better.

Like we always say, we still lack maintenance mindset.

The only thing that will save these airports is if they are concessioned.

Crenzywilliams:
South Africans pay about 9200 naira for what we pay about 13k for, and their content is even better than ours, why shy ours be higher?

Thats not correct. I went to Multichoice SA site recently and the SA packages cost more than equivalent Nigeria ones

rentAcock:
TSTV should never be trusted. They were a flop the last time after an overhyped intro. I will wait for at least 3years before trusting them with my money.

Good point. It might be a scam.

surgical:
This is kindergarten reasoning,if the product is not imported, the issue of subsidy will not arise ,we must produce here,and firm our currency all this is the fault of the government
Secondly in countries where they value their citizens there is one form of subsidy or the other
So it not out of place lf Nigerians enjoy some subsidy don't make it look like a sin,when it is a right

What gives you I impression that if we produced petril here there wouldn't be subsidy. Is crude oil free?

Teewhy2:
That is the deputy president but sincerely he can handle every correspondence he needs someone to coordinate them and I think that is why he asked them to channel their request through him for proper documentation and tracking.
I just hope the deputy president will not also ask them unofficially to channel them to him through his own P.A

Ordinarily this is not a bad thing if the spirit behind it was right and if it would make things more coordinated.

Issue is that as Nigerians are want to do, we take every little 'power' that we have and make ourselves demi-gods, thereby frustrating laid down processes and procedures. That was the problem Kyari had. I hope Gambari doesn't go down that same road.

That said, it shouldn't mean a Minister shouldn't be able to get access to Buhari as often as required. The question now is if Fasola requests to meet Buhari once a month, will Gambari block it? Or will Buhari himself say there is no need and avoid meeting his Ministers.

As a leader in my organization, my direct reports can reach me as often as they need to, both formally and informally and I'm glad to get their feedback and assess how things are going as well as give my input or if warranted my instructions. And if I cannot meet with them due to other commitments, we reschedule - simple!

Cruise control makes more sense for long inter city trips anyway. Even abroad, within town, it wouldn't make as much sense due to frequent stoppage for traffic lights, how much more Lagos where you drive with one foot permanently on the brakes.

GoodofNaija:
To help you think, the people committing atrocities in America are the police and they are not getting away with it, they are being arrested.

Here in Nigeria, Herdsmen are killing and they are owning up to it, yet your grandpa buhari cannot arrest them.

Zombie, what do you call that

Arrested is one thing. Convicted is another. Most white police shooters of black people do not serve jail time. In most cases they are sent on administrative leave for the investigation. Most times they are either taken back into the force or retired, but rarely do convictions stick.

Tobbydhayor90:
http://serap-nigeria.org/serap-condemns-arbitrary-electricity-tariff-fuel-price-hike.ngo/

This press release from SERAP is just noise and doesn't even suggest an understanding of the issues.

First of all electricity tarrif for the base consumers of less than 50kwh per month was left unchanged at N4. That is pretty much free electricity. Also the poorest of the poor in this country reside in our villages. There is zero electricity in most of our villages anyway, so what electricity are they paying for?

Second of all, the poorest of the poor do not use cars and perhaps do not even use generators. While you can argue that higher petrol prices will increase the prices of goods, by definition of being poor, they don't buy a lot of stuff anyway. Also that argument of petrol prices increasing transport cost of good should not arise, cos trucks and trailers use diesel and not petrol.

Don't get me wrong, I'm not anti poor people. I would love for poor people to be able to move up the ladder of poverty into comfort, but i am just stating facts as they are. As unfortunate as it may sound, even the Bible tells us that the poor will always be among us.

Nackzy:
With this P & ID i came to a conclusion that everybody is Corrupt in Nigeria...but in different ways

Quote Me and die in 3 Days

If you propose a shaddy deal to 100 Nigerians, where they will make say N10mln and won't be found out, I can bet you that those that will refuse will not be up to 10

kingreign:
I use cruise control alot.

I'm curious to know on which road that is.

Kelvin30286063:
I use my cruise control effectively when I travel but it's obviously unusable in traffic or in a bad road which is almost everywhere in Nigeria. The main disai notice to cruise control is that it waste fuel

Really!! Cruise control wastes fuel I would expect that it actually improves fuel consumption, since you are going at a constant cruising speed.

Great100000:
AJ. See the Legend (Klitschko) dey Dance because of AJ uppercut. AJ sef no get joy

This uppercut is one of the most savage uppercuts I have seen in the heavyweight division!!