₦airaland Forum

gigabyte13:
Anytime l see DANGOTE name for Rich man list, l just laugh........
If the market is open and made competitive in Nigeria, DANGOTE no go carry 10.
He just dey enjoy government patronage and free tax.
Once you thief enough money for Nigeria, especially polithiefcians, carry am run under DANGOTE in the name of investment and you are safe.
Kudos to him though, for playing is card well.

Irrelevant comment

Cjayboy:
Aliko, is gone owing to how he make the big name.

Political money comes and go...

This present government knows how far and won't give him and group space.

Will you stop misleading with your irrelevant comment.

Juniorangel:
Where is Arthur Eze ?

What is his networth?

psychologist:
When Dangote refinery becomes fully functional, He will be contending with top 20 in the world

Dangote will not be among the top 20 again because the top 20 are mostly tech-based billionaires.

Chigozie321:
Abdulsamad Rabiu $5.9 billion

It's Rabiu for me. He doesn't depend on government money.

will you stop these dry jokes, networth is the not the money in your bank account nor profit earned. Networth is simply assets minus liabilities but most networth ranking are based on the percentage of shares held in a public company.

God1000:
Aliko dangote will bounce back to first position Soon


It's not only Aliko dangote, the net worth of Rabiu and Adenuga also dropped.

The devaluation of naira last year by CBN has badly affected their wealth because our currency has lost its value against the dollar.

the billionaires have most of their businesses in Nigeria and when they convert the value of their businesses from naira to dollar, they would have lost value.

I blame This government with bad monetary policy

Also blame Nigerian bussinessmen for not investing heavily in export-oriented ventures that will earned Nigeria large volume of forex.

degreatstalion:
This was Dangote net worth in 2014 under Goodluck Jonathan.

you should also compare the forex rate then and now. It clearly shows that Nigerian economy is declining.

Nicepoker:
The glut in supply will even drive it to $20 per barrel.

You don't expect a barrel of Bonny light crude with production cost around $30 to be sold at $20 without subsidy because law of demand and supply has limits.

Nicepoker:
Which is not even possible. OPEC can't give Nigeria such quota.

If OPEC where to give Nigeria such production quota, who will be the one to buy crude provided crude consumption across the world is going down due climate change campaigns, green energies, electric cars, biomass energy and some countries have recently discovered crude which makes them a producer instead of importer as they used be.

Hadeylex:
The Nigerian National Petroleum Company Limited and fuel marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria, on Tuesday, clashed again over the removal of subsidy on petrol.

This came against the backdrop of the depreciation of the naira against the United States dollar at both the official Investors & Exporters Window and the parallel market.

On Tuesday, the local currency closed at 998/dollar at the official market, while it traded at 1,225/dollar at the black market.

On the back of the falling naira rate, economists and oil marketers said PMS subsidy was increasing in recent times, but the NNPC quickly countered these positions and declared that it was recovering its full cost on the importation of Premium Motor Spirit, popularly called petrol, countering the positions of

The Chief Executive Officer, Financial Derivatives Company, Bismarck Rewane, had during a live television programme on ChannelsTV on Sunday, explained that fuel subsidy was not removed but reduced.

Similarly, oil marketers told our correspondent on Tuesday that subsidy on petrol was increasing considering the crash of the naira against the United States dollar and the cost of crude oil, stressing that PMS should sell for N1,200/litre in a free market.

Petrol, which is solely imported into Nigeria by the NNPCL, currently sells for between N617/litre to N660/litre, depending on the location of purchase in Nigeria.

Also speaking on the matter, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said there was partial subsidy on petrol, but noted that the commodity was subsidised by the government for political, social and economic reasons.

Full cost recovery

But when contacted, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, described the positions of economists and marketers as assumptions, and insisted that the Federal Government had stopped subsidy on petrol.

President Bola Tinubu had during his inaugural speech on May 29, 2023, declared that subsidy on petrol was gone, a declaration that was effectively implemented the next day by NNPCL.

Before Tinubu’s declaration, the pump price of petrol was below N190/litre, but it jumped to over N500/litre after the President’s statement, and moved up again to over N600/litre a few weeks later.

Asked to state if the NNPCL, being Nigeria’s sole importer of petrol, subsidising the commodity as posited by dealers and experts, the oil firm’s CCCO replied, “We prioritise our time on substantive matters rather than responding to assumptions.

“At NNPC Ltd, we prioritise national development through energy security and sustainable growth. We reiterate that the Nigerian government does not pay subsidy on fuel; we recover full costs from our imported products.

“As a global energy company, our focus remains on fostering a vibrant and energy-secure Nigeria.”

‘Subsidy reduced’

Rewane had earlier explained that subsidy on petrol was reduced and not removed, while featuring on a live television programme on Sunday evening, as he further highlighted the effects of the reduction in fuel subsidy and how it was affecting salary earners in Nigeria.

He said, “At the inauguration, it was said that (fuel) subsidy was gone but subsidy was actually reduced.”

Buttressing his position, he explained, “There is the convergence of exchange rates and reducing the windows into one. The consequence of that is that money has been transferred from consumers to the government.

“Subsidies are reversed taxes; if you reduce them, you increase the people’s taxes and reduce their income. What has happened is that government revenue has increased by 44 per cent between May and June (2023). Money has been transferred to the government but what is the government doing with it?

“The consumers, on the other hand, had a minimum wage, which in dollar terms was $40 in 2002. In 2019, it was about $70, but it has now been reduced to $24.”

Marketers project N1,200/litre

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, stated that subsidy on petrol was rising and that the cost of the commodity should be around N1,200/litre in a free market.

“To be pragmatic in this analysis let’s consider the cost of petrol today in the United States. For premium petrol, it is $2.99, while super petrol sells for $3.15 or $3.10 depending on the part of that country where you are making the purchase.

“Now, $3 in Nigeria is over N3,000, because a dollar in the parallel market is over N1,000. You can also see the cost of diesel, that is over N1,000/litre, and it is important to state that petrol is usually higher in price than diesel in a free market.

“So if you consider the cost of diesel, dollar and other international factors, the price of petrol in Nigeria should be around N1,200/litre, but the government is subsidising it, which to an extent is understandable,” he stated.

Ukadike noted that he had earlier explained that the government was implementing quasi-subsidy, and by this it means that “the Federal Government, instead of taking out the subsidy by 100 per cent, decides to take out about 50 per cent.”

The IPMAN official, however, expressed optimism again that the cost of refined petroleum products would reduce as soon as the Port Harcourt and Dangote refineries start producing the commodities.

“I also believe that there will be a reduction in the prices of petroleum products this year when you consider what the government is currently doing. The coming onboard of the Port Harcourt refinery and the supply of crude to Dangote refinery are good developments in the sector.

“Their operations will help stabilise the price of PMS and other petroleum products in Nigeria, because it will definitely cut down the importation of products,” Ukadike stated.

Social, economic reasons

The Centre for the Promotion of Private Enterprise CEO said subsidy was being retained partially because of its economic, social and political implications.

Yusuf said, “To protect the citizens from further hardship is the reason why the government seems to have applied the brakes on subsidy removal. We are all witnesses to the pain and hardship that citizens are going through.

“So when you are adopting some of these policies, especially these liberal economic policies, it comes to a point where you have to moderate your position for social reasons.

“Just as the World Bank said, if we want to leave the price fully to market forces and the liberal economic policies, the fuel price will be above N800/litre. Can any government that is sensitive to the feelings of its citizens allow that to happen?

“Even if economically that is the way to go, there must always be a human face to economics. So what the government has done is to moderate the reform, and that is why I think the government has insisted that the NNPC should still hold the price at the current level.”

Yusuf noted that the government must balance the gains and side effects of subsidy, stressing that economic hardship may worsen should subsidy be removed 100 per cent.

“All of us who were saying that they should remove the subsidy, we can see that they have partially removed it now, but look at the consequences. Economically it will sound good, but socially and politically it is very costly.

“So those in government need to balance all those considerations. They need to balance economic, political and social considerations. That is why we find ourselves in a situation where we have partial subsidies, both in petrol and electricity,” he stated.

The World Bank had stated in December that subsidy on petrol was still being implemented by the Federal Government, as it insisted that the cost of PMS should not be less than N750/litre if there was no subsidy.

Naira at N988/$

The naira closed at N988.46/$ on the first day of official trading on the Investors and Exporters Window on Tuesday.

This is an 8.97 per cent decline from the N907.11/$ it closed trading on Friday (the last day of official trading for 2023) according to data from the FMDQ Securities Exchange. This continues a worrying trend for the naira which was one of the worst performing currencies of 2023.

According to Bloomberg, the naira had one of its worst years in 2023, a title that 2024 might usurp. It noted that the national currency lost about 55 per cent of its value as of Thursday 28, 2023.

Based on Kyle Chapman, FX markets analyst at London-based Ballinger & Co, the naira was the third worst-performing global currency in 2023 due to a backlog of unsettled forwards, undelivered promises of dollar inflows, and a two-decade peak in inflation.

Chapman said, “The naira’s downward momentum is likely to continue through much of 2024, and its ultimate trajectory will depend on whether the CBN’s rhetoric transforms into concrete policy moves that drive up the flow of US dollars into Nigeria and shore up trust in the official market.

“If the CBN’s promised measures materialise and Tinubu’s government enacts structural changes to increase oil production or to drive foreign investment, there is plenty of opportunity for the naira to lift from its record lows. But a quick fix is unlikely, and further depreciation will come to counteract supply and demand imbalances.”

In its December Nigeria Development Update, the World Bank noted that naira had depreciated against the US dollar by 41 per cent in the official market and by 30 per cent in the parallel market. It noted that the naira needs increased volume to stabilise in the official market.

It said, “Further monetary policy tightening is expected to help underpin the value of the naira. However, there is also a need to increase FX supply in the market. Facilitating FX flows, especially from all exports, through the NAFEM can help provide additional volumes in the official window that can help provide stability.

“In addition, clarity on the CBN’s net reserve position, and on the CBN’s continued progress in clearing the FX backlog, would also strengthen market confidence.”...

https://punchng.com/nnpcl-marketers-clash-over-subsidy-operators-peg-petrol-at-n1200-litre/

Petrol should be N1,500 without subsidy and not N700 with subsidy.

Ironbull:
The electriciy privatisation is not working idea at all it is all a scam.

Power supply should be retun to NEPA if possible.

do you even read and understand the article at all, electricity is partially privatized and TCN handled by the FG stills remains the bottleneck with a transmission capacity of 7,100MW for a generation capacity of 13,000MW to Discos to distribute.

chinwezdasilva:
What’s the difference

There is huge difference. There are two types of government corporation: nationalized corporation and commerical corporation.
Nationalized or public corporation is an organization setup by the government to provide essential utilities to citizens at a subsidized rate. These kind of organization is built, operated and maintained by taxation from it's citizens e.g Nigerian Railway Corporation, former NNPC, default Nitel, NAFCON, Ajoakuta Steel Complex etc.
Commerical corporation is an organization owned by the government but for profit making which also generate revenue for the government. e.g NNPCL.
Private Corporation is an organization owned by private entrepreneurs for profit making e.g Dangote Refinery and Petrochemical Ltd

erico2k2:
You say the TCM are running at a loss, please who owns the TCN?

TCN is owned by the federal government as a nationalized (subsidized, loss-making) organization to make electricity cheaper for Nigerians.

erico2k2:
The pricing is right at the moment, their problem is not enough customers. This was what the telcoms did, they invested heavily and the result me n you know,Coys need to have a focast for up to 5 to 7 years of still profits b4 they break even.The electrical mkt is consumer based and we have more than 200 million homes that need electricity so its a big mkt.

NB
I found out the DISCOS are parading a scam as well where they return power generated by the GENCos and still charge its customers the said power but no return to GEncos.The FG should formulate a plan to force the DISCOs to invest in power generation or own part or % of GenCos.FG should iether get a stake in Distribution or leave it i n total to a new interest party ie the DISCos, cos at the moment all the DISCos do is Buy power and sell it to us and make profit.

Forcing Discos is invest is a sign of cluelessness because you don't force businessmen to invest in their businesses for grow. The federal government is the one that needs to forced itself and invest in TCN grid capacity and FG owning stakes in Gencos is another irrelevant move. The Gencos generates 13,000MW while TCN transmits 7,000MW to Discos for distribution. GEJ privatized generation and distribution for profits making and left transmission for loss making serving as a bottleneck in the power sector.

Burob:
I agree, mother of all strikes will occur in Nigeria, lack of societal discipline.

The Federal Republic of Nigeria was created to be a dysfunctional society.

See how they made useless this privatization of he electricity sector, remember that morning in November 2013, when President Jonathan was handing over certificates to those quacks.

People like you who look at the truth and decide to shifts still remains a problem. The electricity sector is still frustrated by the federal government through TCN with poor transmitting capacity and not the privatized generation and distribution companies.

JoshTim:
Privatization was not properly done. It was merely contracted based on man know man than competence and track record.

The transmission sector handled by FG still remains the bottleneck in the power industry, then TCN capacity is 7,100MW for a generation of 13,000MW and it is what is transmitted that can be distributed.

tsdarkside:
look the hugh amounts they are throwin around without no tangible results....

nawa for you nigerians....
privatization was a hugh mistake....

it cant work with people that go crazy when they hear anything money....

Partial privatization is a huge mistake not privatization because electricity sector has three tiers:
Generation (privatized)
Transmission (nationalized)
Distribution (privatized).
The article shows that the generating capacity is 13,000MW while transmission capacity is 7,100MW which is handled by the government.

Angelfrost:
Increasing the tariff is not even my issue...!

Where the light?!!

Nigeria is just a funny nation where citizens are demanded to pay more for epileptic services.

Imagine BEDC threatening Edo and Delta with increased electricity tariffs... Is that not laughable?!!!

It is even more laughable to realize that majority of Nigerians are poor to pay for constant electricity.

johnmartus:
This useless disco are just a useless hopeless organization. Nigeria electricity supposed to be competing with what Nigeria are earning from crude oil of course we have the population. Many communities not see electricity light for 10 years even in urban areas you still can't guarantee 8 hours power supply. You keep increasing tariffs every month like you are selling pepper.

The Tansmission Company of Nigerian that has refused to improve their grid capacity from 5,000MW still remained the bottleneck in the power sector. Now, expecting the electric tariff not to increase when the price of natural gas that contributes 80% to the grid has increased is self-deception.