rvp2018: Unless you're going to increase oil production otherwise the export will fall by almost the same amount that import will fall; cost of refining is 3-5 dollars a barrel. That is what you'll save plus other petroleum products if Dangote goes into that.
In short dont get over-excited - the value chain from crude processing is not a game changer.
But it sure will eliminate the national shame of being only OPEC country to also buy refined fuel.
Just stop being hateful for a minute and you'll understand: - Nigeria exports oil and imports refined oil which demands scarce FX. - This refinery will make Nigeria to stop importing the refined oil and intact, Nigeria will become a net exporter of refined oil which will give give us the much needed FX. - At the end of the day, Nigeria will export the excess crude that we produce which the refinery can't finish refinering in a day. And also export the excess refined crude that Nigerians can't finish consuming in a day which is over 100,000 barrels of refined oil.
Nigeria's top imports... Refined petroleum products take almost 1/3 plastics not included. And someone was arguing yesterday that a huge refinery would be a curse than a blessing I'll say it again, in few years time we will start exporting avaition fuel to Kenya
faceland: The same reason Google Ads doesn't show on the website or Mark Zuckerberg hasn't offer millions to buy it off... It is not ad-friendly, not friendly at all. Some of the views expressed here might even cause a riot in their country (especially religion). Then the explicit display of graphic images.
The internet has changed. Niaraland is still like the old days of social media where you can be anonymous and get away with hate speech. That is the website's core attraction and major turnoff.
rvp2018: It doesnt matter the capturer. You wont ride in Dangote private jet just like I wont ride in a Kenyan indian jet. What matters is the millions of kenyans and Nigerians. Are they getting value for money? Is the economy working for them or a select few.
And who are you to dictate to us if the refinery would add value or not?
ahmedsaniadamu: yes bro. in Northern Nigeria more especially North East web development is not something popular at all. so many people believe that is not a skill to learn. to them an okada rider is better than web developer. people keep mocking me all the time no one appreciate my efforts they just see me as someone useless which makes me so demotivated that's why a really pray to get a job even a low paying job because at least they will understand me. life is not easy for me at all.
chukwuebuka65: Nice , but I dey fear say no be you build this app, if not, you for no dey look for job.
He mentioned that he's doing his IT, and still at home due to ASUU so it's understandable since he's probably not in Lagos. Apart from Lagos, there's no other places in Nigeria where you can easily get a tech job
Bwoy, reduce fantasies. This is not ghana where currency is about to go to garbage can.
American tech giant Google is investing in its first-ever Africa product development hub in Nairobi as part of the tech firm's Sh115.5 billion investment on the continent over the next five years.
Zombie, we have more than 10 buildings 30+fls currently under construction. The last time I checked, your tallest building is still the ugly Necom. In Nairobi, tallest buildings keep changing. I know you don't have a cue of what I'm talking about cos your brain is glued on govnt spending on infrastructure. Kenya is not a zoo .
Honestly, if it comes to tall buildings, I'll give Kenya that because building tall in Nigeria is not profitable since people don't like living in tall buildings in Nigeria, people rather live in a House with fence and with a large compound so high rise buildings arent worth it here
Shma2022: This is what we call progress. 1st pic - March 2022 2nd pic - October 2022.
Key takeaways: Construction pace in Kenya is at a break necking speed. Nairobi of Today is not Nairobi of yesterday. 88condominium <opposite prism> was 24fls in March, 5months down the line, it's 48floors - Amazing! Unlike Azuri or other skyscrapers in Nigeria that took 20yrs to top up, Kenya is only taking a year to finish 45fls+. Despite all the activities that involve concrete, we have managed to maintain beauty and greenery.
I'm now convinced Kenyans don't want any African country to progress other than theirs. Only Kenyans (in this thread) argue with Ghanaians, South Africans, and Tanzanians
rvp2018: He controls the market then ask Abuja to ban cheaper imports. And they do as he wishes.
Dangote Cement controls 61 per cent of the market share, Lafarge Africa 22 per cent and BUA Cement the rest
Why dont you allow imports to come in freely if Dangote is competitive.
Because, it would affect the naira. Dangote doesn't even ask government to ban things like people always say. The government willing does it because it would help local industry
rvp2018: Manufacturing is only beneficial if it's competitive. If it's protected - it's a double whammy. It would be cheaper - freight factored - to import from more efficient Indian or South Korea refineries.
Look at you cement or rice - it's way more expensive than imported ones.
Basically, what need to happen is to give Dangotes few graces period to grow from infancy- then allow him to compete internationally - if they cannot compete - they close shop.
The problem with Africa - mostly Nigeria - few companies capture the state - they ban imports - enact monopolies or oligopies - and economy pays for their inefficiencies.
The first thing Dangote will do next year - is to ask Abuja to ban import of refined fuel.
The dangote refinery will be the most efficient in the world
rvp2018: Pray it doesnt die - Dangote is indebted to the gills - 7B dollars - and still need 1B dollars to complete it. The cost has shot up from 12B dollars to now 19B dollars.
The refinery cost grew to $19 billion after initial estimates of $12-$14 billion and years of delays. State oil company NNPC, which last year acquired a 20% stake in the refinery for $2.76 billion, said that it expects the refinery to start in the first quarter of 2023.
Dangote can't go broke forget what people are saying.
rvp2018: As long as your refined fuel will be cheaper than India, South Kore, UAE and Saudi Arabi - freigh included - why not. But I dont see Dangote getting off ground soon. Might be another 3-5yrs.
rvp2018: Where will Dangote get dollars. Focus on improving oil and gas production. Well I dont think you'll consume all the 650,000 barrels so Dangote may be able to sell refined fuel - but Dangote thing is facing a billion dollar shortfall - I dont see that refinery getting off ground in the next 5yrs.
Dangote will get dollars from the things he exports like cement, refined crude Like you said already.
Dangote refinery, though I don't see it completing this year or early next, the problem about money is nothing to worry about, cos the government knows how crucial the refinery is to Nigeria's economy, they will bail him out so im not worried. Plus other refineries are coming up in the next five years . We will soon star exporting diesel and avaition fuel to Kenya
Mkenya2019: So Dangote will be buying oil using dollars or Naira. The excitement about refinery saving forex is misplaced. It wont have any impact. You should be more worried about falling oil production. I think so far Angola and Algeria have overtaken you.
The excitement isn't misplaced cos we would save Forex, Remember NNPC own 20 percent stake in the refinery, also the refinery is more than enough to supply Nigeria the excess will be exported and it will make us more money because refined crude is more valuable than normal crude.
Our oil production is something to worry about, yes for now. Just 2 days ago, NNPC discovered an illegal connection that has been stealing crude for almost 10 years, and more will be discovered in months to come because our government is now serious about it.
Mkenya2019: Then what purpose of the fuel subsidy. Use that money to fix electricity.
Beside refinery wont help - you will lose forex from crude oil equivalent to what you'll refine - what will help is selling more oil. At this rate with Nigeria oil production going down to 1.3M - Dangote will take half of it - slashing dollar earnings from crude by half.
The CEO of Financial Derivatives Company, Bismarck Rewane, is not as optimistic. He says whatever Nigeria gains in not using dollars to buy refined petrol is almost equivalent to what it will forfeit by giving up 650,000 barrels of crude daily that it can no longer sell and earn dollars from.
Then we would sell it to dangote in dollar, it won't matter cos it will still be the same price we pay for imported refined crude
rvp2018: Why are you importing oil when you have it. That is possibly single hemorrhage of forex.
Exactly, although we import refined products not oil directly. Immediately we have refineries that can meet demand, we'll ban importation of refined products soonest. That's why I have hope of what dangote refinery would do
rvp2018: He is right on money. This has nothing to do with import restriction on say rice. Trade policies. It's about Naira-Dollar - Moniteray policy. Nigeria should restrict import of rice/etc without using dollars. It should do that by simply raising the import duties for foreign rice.
The Zoo moniterary policy is crazy. Last happened in Kenya in 1990s. What Obi is seeking to do - Kenya did in early 1990s.
You could make your points without insults... Moving on
A country like Nigeria needs import restrictions else our currency would free fall a thousand fold. Like why were we importing toothpick? Makes no sense when we have plenty of wood. Even in China, it was restrictions like these that helped their economy in the long run
Unrelated, but what do you guys think about what Peter Obi said:
As part of our monetary policy, we will seek to re-establish the independence of the CBN; and commit to a credible and transparent plan to normalize the exchange rate and bring inflation to single digits.
We will remove import and forex restrictions and insist on a single forex market. The current system penalizes exporters who bring in forex by forcing them to sell at a rate that they are unable to source for forex when they need to purchase forex.
This multiple exchange rate regime encourages capital flight and deters investment, which has further worsened Nigeria’s forex situation.
I personally don't like that Idea also it contradicts what he said about consumption to production, if he does this, he could set back the gains Buhari made in agriculture by years. Its not good at all.
rvp2018: Your expansion strategy is bone-headed. You go everywhere and buy the cheapest smallest struggling bank you can get - spend years cleaning their balance sheet. You give South Africa competition in burning capital.
Kenya expansion is well thought out - and strategic - with intention to turn profitable in 3yrs or bow out. This cut across most kenya companies. The only place kenya companies have got burnt so far is South Sudan - another Zoo like Zoogeria - with currency like Ghana Cedis and Zambia Kwacha.
DRC and Ethiopia represent the last frontier of banking in Africa - combined market of 200M - with almost 90% unbanked. Kenya banks are the trailblazers in banking the unbanked - and these are the models that is seen them overrun DRC. Equity was tiny banks 10yrs ago - but now it behemooth - it was not even a bank 20yrs ago - it was building cooperative society.
This is why Equity is studied in Harvard Business school - for banking the unbankable and making serious money.
Buy yesterday, you argued that Nigeria rather go to Kenya that already has banks than DRC, I even believed. But thank God someone just showed the facts.
obaaderemi: Because they're like their father the devil. Lying comes naturally to them. They just pull out figures from thin air.
Unnecessary, but I still understand, yesterday they were talking about how their banks will expand and surpass Nigerian banks... Without also acknowledging that Nigerian banks will also have their own growth. (Like it's only Kenya that is improving, Nigeria is just stagnant, that kind of thing )
GeneralDae2: Nigerian total banking asset is over 140 Billion dollars this year 2022. So you see yours is about 2.5 times or more less.
This is a lie. Kenya is not second to South Africa. Neither Kenya or Nigeria are doing that much better than the other in this area. Here is a list of the top 100 insurance companies in Africa. Nigeria has 3 companies represented in top 50 there and Kenya has 2. The list is dominated by South Africa, Morocco, Algeria, and Egypt. https://atlas-mag.net/en/article/top-100-insurance-companies-in-africa
You are truly a clown. Kenyan pension fund is 4.4 Billion dollars. That of Nigeria is over 30 billion dollars. This seem to be a waste of my time.
Are you for real? Twice bigger? Nigerian total market cap is 66 Billion dollars with about 49000 basis points and 161 companies listed. Kenyan market cap is about 18 billion dollars and reducing significantly. That's close to 4 times smaller than that of Nigeria (dominated by indigenous companies who do not have to threaten the market with capital flights when there are global problems). What in the world are you smoking man?
Speaking out of conjecture again?? lol. You should not be taken seriously really .
Nah, Fintech, we are not neck to neck. Yours is doing well, at least due to Mpesa, but we have a more advanced fintech market than yours, that's why MTN momo just being introduced are to target the unbanked in rural areas to make up 70% of their customers. Because they are coming into a market whose Banks have lots of options and not one single dominant option.
In what world is that even possible?
You are a joke. MTN made 1.65 trillion in 2021 (3.7 billion dollars). Airtel also made close to that. Glo made over 1.5 billion dollars. MTN has 78 million active subscribers in Nigeria, Airtel has 56 million and Glo has 38 million. How on earth are you comparing this kind of a market to that of Safaricom in Kenya?
Our Agriculture data can't be dodgy simply because we import lots of food. We are one of the dominant players in about 4 out of the 7 major staple foods in the world.
Next time when you want to reply me, don't speak from your ass. E-commerce alone in Nigeria is worth about 13 billion dollars. Konga and Jumia, two of five top e-commerce companies in Africa have their biggest markets in Nigeria. A market with a plethora of other booming and upcoming e-commerce platforms.
Those informal sme's in Nigeria make up about 45% of the total number of sme's in Africa.
Why do Kenyans on this thread like over estimating figures and facts to make Kenya look good while also underestimating Nigeria's own? It's becoming annoying
Politics › Re: Kenyans Are Far Behind Nigerians In Every Aspect – Fani-Kayode by Fourpockets: 1:15pm On Oct 11, 2022
you'll die under the tires of a dangote cement truck tomorrow evening 
or Naira. The excitement about refinery saving forex is misplaced. It wont have any impact. You should be more worried about falling oil production. I think so far Angola and Algeria have overtaken you.