₦airaland Forum

Lordsonn:
W
How will it reduce pressure on forex? Dangote is importing the crude from other countries using forex and there's a clause in the agreement that part of the refined PMS will be exported to the country that sold the crude oil.
Dangote will supply Nigerian oil market directly. NNPC will continue exporting crude oil and importing PMS

If Dangote supplies Nigerian oil market wouldn't that reduce or eliminate the importation of refined products by NNPC?

SmartyPants:
I suppose all of this can be solved if they simply traded crude for refined products like we were doing at some point in the past?

True. But we are not producing above 1.3 million bpd as at November 2023 and due to previous crude swap deals, some of what we produce are for forward contracts. This means we may not have enough to supply Dangote 650000bpd and still be an OPEC member supplying anything tangible to the world.

SmartyPants:
A subsidy wouldn't affect Dangote - he would get his full price regardless of whether it is the marketers paying or the government paying him. Producers don't bear the burden of a subsidy.

That's true if he is paid in dollars at international market price. If he is paid in naira, it's a different story.
He however needs more dollars to pay his foreign workers and to pay his debts. He may also be purchasing crude from IOC in dollars.

If I were the FG, I would pay Dangote in dollars then subsidize at a fixed price of say 350-400 naira.

justtoodark:
that means goverment is already tryin to pay subsidy for you through dangote if he keeps the deal....

but i doubt if its realy that case....
nigerian goverment sellin to a indigenous refiner would make sense because nigeria is havin issues sellin crude in international market....

we are hearin news that nigeria is havin issues sellin their crude....

I think we can bring back subsidy with this method. We sell enough Crude to Dangote and local refineries in dollars and then we keep a fixed price of 350 naira for the masses.

The dollar is not wasted because the local refiners like Dangote and NNPC (through PH refinery) would still convert some dollars to naira for their local operations

Malawian:
Where did the "gas" come from?
From crude oil?

Una mumu never do.

Gas can come from crude oil. However, this is not gas flare but the usual pilot burning required in all form of refinery start ups.

MosD:
Let's pray it leads to price reduction in diesel that it's starting with

That's what it would most likely lead to due to availability.

Dangote did the smart thing here. He is starting with Diesel and Aviation fuel because there's no subsidy at all there. With PMS, Government had to keep the price around 600 even though exchange rate have been hovering around 1000 to a dollar and crude price is around 80 dollars per barrel.

nairalanda1:
You should be asking why all the Southerners that got licence for refineries did not start them up. Like Oriental refinery, for example.

The answer is, subsidy made it unprofitable for them to do refineries. Only people who could do refinery under subsidy regime was Dangote, and that is because Dangote has the sources of income that would enable him to do collateral with the banks that lent him money.

When some of us say subsidy should go, it was partly because we wanted more people to be able to take loans to build more refineries...since now subsidy is gone, the potential for profit means that banks would lend them money easily. But most of you Nigerians no wan hear. Na cheap fuel we want.

And it isn't just Southerners, many Northern refineries...must it be only Dangote from the North? There are others, but because of subsidy, dem no wan do refinery too.

Sometimes, some 'harsh' decisions are for our benefit. But we said no, so here we are.

I'm even not surprised Dangote is favoruing his own people. Na his private business. Plus, if I was a Northern governor, I would be putting pressure on him to employ our people.If he was from the South, I would have expected the same thing. The problem is subsidy made fuel refining so unprofitable in this country that potential Southern refinery tycoons could not do business.

I don talk my own.

I believe it's thesame reason Dangote is taking his time with PMS production because there is some form of reduced subsidy at the moment.

So it seems Dangote wants to sell Diesel and Aviation fuel first where there's no subsidy at all.

DARLINGTON869:
When the world is fast moving away from fossil oil, we are just beginning

The world is not moving away anything. Forget that story.

solex75:
At least it will reduce pressure on forex.

It's starting at 370000bpd. How much can be exported from that?

garfield1:
You were right,the apex court don't like reruns.unto plateau

They dread instability except the case is very clear.

Ruto my man 😄😂


https://www.youtube.com/watch?v=a9iK4_Fn8hY?si=L9y9YWqojBHHD1Qw

Daninya33:
Asisat Oshaola may be heading to Manchester UTD.

Better.

DMerciful:
He invested the money, not because he has shares but for the State to benefit. He left 75 billion and never approved pension or land or houses for himself like other govs did. Obi is as clean as a whistle

Lol. Of course it's always for the state to benefit. Tunji Ojo and Barth Nnaji can also say they are not benefiting from their company getting a contract, it was for Nigeria to benefit.

DMerciful:
He never did! A company he has shares in, yes. His family business, no!

He admitted it belongs to his family but he resigned. Go watch that interview again.

Watch from 18.00 in this video. He never denied that NEXT still belongs to his family. He only explained that he resigned from the board of directors. If you watch further in that interview, he even openly admitted to putting state money in businesses/banks he has shares in.


https://www.youtube.com/watch?v=Ze2Onm6DmW0?si=RAVCasSG50wLlvqA

DMerciful:
You only hear what you wanna hear. He never confirmed he invested state funds in his family business

But he did so in 2019 in the interview for presidential election.

Kam2021:
400k and no savings,..you are extravagant..
People that earn less than 100k still save and live well.
You no need make person waste time begin advice you.

I think it largely depends on where you live.

Ahnii:
I beg to disagree with you sir That money if properly managed he can still save like 50-100k monthly.
I started life with my husband with his meagre salary of 37k and he was still saving 10k monthly.

But shebi now fuel price have gone up. Would that still be possible now?

Deltamani:
Nigerian Father and a Danish Mother.. Good thing is she can Play LB and CB very well.. I wish Nigeria got her earlier on… Waiting till they get to that 20+ age when the players already declared their intentions of playing for 9ja is bad.. Let’s go for them if the talent is already Showing, going for them will be Difficult once they get to that Point except the Players really want Nigeria at all cost..

A lot of them are there with the talent’s already showing but NFF won’t even bother because of their own motives..

Hmm I love left footed players or those who can use both feet very well. Let's go for her. Our left back position needs reinforcement.

rvp2018:
On the lean year for startup kenya tops.

Yeah nice one.

Access Bank Zambia completes acquisition of Atlas Mara zambia

Shaytun:
Lagos

Eko bridge

Lagos doesn't just build one bridge. They build 2-3 bridges simultaneously, yet the population keeps rising making it look like they haven't scratched the surface yet 😂😄

Deltamani:
FT | 𝐒𝐔𝐏𝐄𝐑 𝐂𝐔𝐏 𝐂𝐇𝐀𝐌𝐏𝐈𝐎𝐍𝐒 🏆🤍🖤

Did Echiegini make her debut?

rvp2018:
Agreed- Tinubu should devalue NAIRA until black market disappears. Just float Naira freely and remove all forex controls. It will find it base eventually. Anything else is postphoning problems.
Disagree strongly on the nonsense of favouring Dangote - it beyond stupid - it immoral and it make you look like a mo.oron.
All Nigerians should buy dollars at almost same rate.
Dangote is not Nigeria state or federal gov to transfer benefits to you.
Mumu

The problem with you and your likes is that you want to be more capitalist than the white man.

Its stupidity not to support big businesses struggling with FX by subsidising FX for them especially the Dangote refinery which is 19 Billion dollars. That project would likely have packed up long ago given the difficult climate but for the subsidized forex.

Always open your mind and use your brain when analysing issues like this.

rvp2018:
Tinubu continue to impress me. He should go hard of tiny mostly northern elite like dangotes who have captured Abuja to destroy the economy for their own benefit..from rigging forex to stupid import ban list to using taxes to build own roads

Speaking about FX, my problem with Tinubu is that he and the central bank only focussed on unifying the many windows at the official rate into one and they seem to have ignored the black market.

Black market must be unified with the official rate, that's what I want. But it seems that is harder because of the structural challenges that have long been there and most especially the illiquidity of FX compared to demand.

In the past, under Buhari and Emiefele, in addition to the black market, we used to have about three different rates at the official window as well which made the whole FX market so confusing. Tinubu and the CBN have now succeeded in collapsing all windows at the official market into one rate but they are still struggling to tame the black market.

The likes of Dangote and about 85 other firms benefited from some of these different special official rates that was subsidized for them, which is not really a bad idea in my opinion but just had to be done with due process.

Good2go1:
Obi's manifesto comes to mind, It is a good thing to implement good ideas no matter who conceived it what matters most is the good of all

Obi did not conceive this.

The Project that could bankrupt Egypt.


https://www.youtube.com/watch?v=miIx-0IHTN0?si=O2IZ3spau7kDame3

samorobo:
I hate to admit it but I agree with you on this 😂😂😂

You guys should let my beloved Ghana people breaaathe. This year no Ghana bashing 😄😂😄

BascoVanVeli:
What a goal by Oshoala. Vicki Lopez with the assist

Yeah. Vicky also had the 8th goal.

Rema - Charm

Appisko:
Economy size (GDP current prices)

🌍 Africa: $3.1 trillion

🇺🇸 California: $3.6 trillion
Sad reality yet we hear fighting over peanuts

It's even getting worse.

SA struggling with 1 to 2% GDP growth due to unexpected dumsor (power crises) in the last 2 years. The hope they have is that their private sector is investing hard in the power sector.

Egypt still stuck building their new city of 30 Billion dollars that looks like a never ending project draining resources, high inflation and devaluation of Egyptian pounds with the craziest debt burden in Africa despite support they get from the likes of UAE, Qatar, Saudi Arabia.

Nigeria: Naira devaluation and Inflation.

That GDP of Africa may most likely reduce in 2024 except something is done or other countries grow tremendously. Ethiopia has that potential but most likely not in 2024. Ruto's tax mobilization and reforms in Kenya still on and his focus now would be to successfully pay off that Eurobond in June.

So there are problems everywhere I look in Africa.

Botswana and Namibia are shining lights but too small to have any meaningful effect to Africa's GDP.

So we look towards countries like Morocco, Ivorycoast and a much relieved Ghana (from difficult 2022).

I don't know if I can say it's getting better for Africa. 2007 to 2019 was good period for Africa in terms of economic growth. Since 2021, it's been one struggle or the other across.

vankelvin:
Some of these things are just common sense.

Ordinarilly, Kenya is suppose to outdo Ghana on this because they have the population, they started this electronic transaction business before us and all that but ask yourself "what is Momo and Mpesa all about? is it not mobile money transaction?

How many Kenyans have money to send on Mpesa as compared to Ghanaians?

So you are saying Ghanaians have more money to send than Kenyans. Okay oo, maybe I didn't take note of that.

Just40:
I did not bother to check that of mpesa because I really didn't care.
Last year, mpesa did less transaction to Ghana's mobile money. So ain't no need to compare

Lol I saw the argument between you and rvp2018 last year but my question is:

Is it really possible that mpesa would do less than Ghana mobile money?

Think about it.

Mpesa is in all of Kenya and have almost single handedly replaced traditional Banks in that country and Kenya is 54 million people. Ghana is 33 million people and the rate of penetration of MTN's momo and other mobile money lines cannot be compared to that of mpesa in kenya.

Given these facts, how is it possible that Ghana does higher mobile money transactions than Kenya?

I saw the Kenyan data presented last year which rvp2018 presented and you used for your argument but I didn't delve deep into it then.