₦airaland Forum

KingTom:
Someone please breakdown this Oba of Benin, Twitter live Fuckery for me

Ronu claim say Igbos insult Oba of Benin.
Some Igbos say nor be them, say na people wey dey masquerade as Igbos (a guy called Harry presented evidence of this).
Some Edo guys say dem nor send the insult because they know say Ronus dey lie.


Na there I stop😎

Stick to ussd and app transactions only.

Be safe

Modified:. It's probably fake news.

[quote author=monerozi5590 post=131510791][/quote]Lmao.. Oil price set by NUPRC is the market rate for crude.
Basically them enforcing it.
Unless na me nor understand

larride:
Away Southdoor and Gbaland, Starboy don dey shine again.

E nor go better for them.

Had us fighting for our lives 😩

Oh look😁

He's not a midfielder though.

Southgate nor go see heaven

monerozi5590:
Na Nigeria agency NUPRC set the price oh. Those ones want to sell it above the price.

.. How does NUPRC set the crude oil price?
Let me sef learn this

iamoyindamola:
AI tool should be a guide like assisting you to achieve your goal
If AI tells you 1+1 is 2 without you showing why it's 2
You are the useless one of AI
What majority of people do is to dump everything AI give them without doing anything
And it's not advisable to introduce AI to children until they reach 18

This is fair.
My issue is with the use of AI detection tools that flag you for using AI at all.
That's a waste of time at this point.

nihilistjnr:
The logical conclusion to your question is explored in Warhammer 40k, and the dark age of technology. It's not an IP most are familiar with, but I'm a huge fan of it.

Anyway 40k is set in the 41st millennium, and one of their plot lines explores something called a Standard Template Construct (STC) which is an AI so advanced thag it is capable of building anything you want based on preconfigured templates, from 3D printing spaceships to terraforming entire planets.

Now in the times before the current setting, humanity experienced a galactic level civil war, and most of their scientists, engineers and general STEM experts are dead.

So nobody knows how an STC works, only that it works, and when it doesn't work, nobody knows how to fix it, because nobody learnt how to build anything. The AI and software running their spaceships and general machinery are now being worshipped as Machine spirits because nobody knows how to code, or even the meaning of code, to the point where they look at basic software like a digital dash and consider it sorcery.

That's an extreme example, but this truly the danger of AI in its peak manifestation, and in general technological advancement as a whole.

In the UK now, they don't even sell cars with spare tyres anymore. If your car has a flat. You call someone out to fix it. And there's now a whole generation of people, my wife as an example, who have never changed a tyre before in their lives and would be stranded if that happened in say Nigeria, because she doesn't even know what a Jack looks like.

And that's the danger AI presents to learning.

I agree but the issue is companies are racing towards that future.
With each update, AI assistants are doing even more.
Being integrated more.

So what then should be done?
Pressure the government to pressure the companies to find new use cases or otherwise stop this development trend.
We have alot of people who buy into this AI dream.
But let's leave that extreme future.
My question is mostly for the use of AI at this moment in learning and development.
Should there be limits or should it be embraced?
I mean AI is already being used in our jobs as part of our daily drivers.
So how e go be?

BlueRayDick:
Let me ask you a question: Why do u think Dangote refinery is considering setting up a London based trading arm?

If crude oil business is as simple as " If crude is 1 barrel per $80, then sell to me because u have the product" ; why do u think oil and gas companies set up trading offices in Dubai, London, etc.? These are trading offices run by expats who are international trade specialists paid in dollars.

Do u feel those guys are paid hundreds of thousands in dollars to just sit down to do "willing buyer willing seller" ?

BlueRayDick.
Right now the facts are simple and no need to be complicated.

The PIA encourages willing buyer and seller.
The PIA also encourages DCSO.
The open market rate is what Dangote wants to buy the crude oil with. This is determined once again by the DCSO.
Open market rate of crude is 82 dollars per barrel.
That is what Dangote is required by law to buy before the oil leaves the shores of Nigeria.
The extra 4 dollars Dangote has paid for oil is premium added by IOC through their trading arm which is illegal in this case.

That is the argument.

There's a reason NUPRC is currently looking to amend the DCSO right now.
https://punchng.com/nuprc-set-to-amend-domestic-crude-supply-regulations/

Spy360:
Dangote is notorious for being harsh to Nigeirans himself. I believe that's where he is having issues with policy makers and public analysts.

He sells cement higher than international market, etc . He cannot be trusted as a business always wants to be spoon-fed.

I agree but sadly, we are joined at the hip with him on this issue.

It will save us more money to supply him crude, pay him subsidy especially in naira.
The logistics cost will be eliminated.
The idea that we won't experience fuel scarcity is too good to not ask the FG to do it's job.

Unless the FG comes out to tell us what the actual problem is.
Until then, Dangote refinery gats work going by everything available to the public

Honestly at some point, this whole AI detection tools will be useless because why should I be queried for using AI tools to achieve a goal.

I was watching this Google Gemini presentation and honestly AI presents alot of questions especially in regards to learning.

How will the education sector embrace use of AI say 10yrs from now

Ibime:
Stated by law, and he no go court? Leave story. All relevant information is contained in the price of a good. He is not seeking market price but Dangote price. Market price is the price you receive from selling abroad less the difference between shipping abroad and shipping to Dangote. If Dangote can meet whatever that price is, he will have no problem.

This man.
Dangote is saying they should sell him crude oil at the market price of crude.
If 1 barrel is $80, that is what he wants to buy.
He's asking them to stop selling through their subsidiaries after they have carried oil outside naija.
Unless you have new information I'm not aware of.

GloriousGbola:
The IOCs contracts likely precede the pia.

The IOCs have actual well compensated internal and external legal teams with decades of experience in these matters.

dangote is less than 12 months as an operator in this industry.

he is not going to mke the mistake where he takes this to court and forces a ruling that will negatively guide on his operations

How long did it take the PIA to be developed?
Does it state anywhere that the contracts of These existing contracts take precedent over DCSO in the PIA?
that's the important question

Itsrm:
This should not be the case though. Whatever contract any IOC is signing must be in accordance with existing laws.

Because it is not the case.
Hence why people are looking at FG sus because they don't want to enforce the law for some funny reason.

Either bribes or backhand deals or something.

Maybe IOC's will say the FG has enough to actually sell to Dangote but are refusing to. Which will make everybody ask why?

Ibime:
What is the value of the multiple charges per barrell? Is it the cost of transportation from rig to Lagos? Put numbers on it.

Like I say, once a suppliers profit motive is met, no need for long talks. Dangote wants discount that does not match the profit contribution suppliers are getting internationally. This argument is about price, nothing else and as usual Dangote is seeking an advantage (rentiering)

What discounts does he want again?
Someone is saying he is ready to pay the market price of crude as stated by law.

Abi na me dey misunderstand?

Itsrm:
He won't be buying from them

They were going to sell to him if he was going to pay the additional charges if he was buying through their subsidiaries like he was asked to.

BlueRayDick:
Let me ask u one question .

Let’s say there’s an agreement between FG/NNPC and let’s say Shell for oil exploration and the agreement says Shell gets 40% and NNPC 60% of the crude explored.

Now the NNPC has obligations to repay those loans out of their 60% of the last crude tapped out of the ground; they also need to sell some to international refineries to make the country money etc .

If IOCs out of their 40% chose to favor their own customers which they have contracts signed with first and then offer Dangote crude at a premium price , is that a crime according to PIA ?

Plus how come this same IOC's suddenly have the required oil to sell to Dangote if he wants at the price they want to sell? 😁

BlueRayDick:
Let me ask u one question .

Let’s say there’s an agreement between FG/NNPC and let’s say Shell for oil exploration and the agreement says Shell gets 40% and NNPC 60% of the crude explored.

Now the NNPC has obligations to repay those loans out of their 60% of the last crude tapped out of the ground; they also need to sell some to international refineries to make the country money etc .

If IOCs out of their 40% chose to favor their own customers which they have contracts signed with first and then offer Dangote crude at a premium price , is that a crime according to PIA ?

All this doesn't matter bro.
The DCSO says before oil is taken out from Nigeria, it must first be sold to Nigerian refineries.


It's that straight forward.
It supercedes whatever contract obligations you have with customers outside Nigeria.
The definition of energy security.
The IOC's agreed to it.

BlueRayDick:
If u believe this , then why has Dangote not enforced this through arbitration or law courts ? Why is he coming to the court of public opinion ?

I don't have to believe this.
It is the law.
Do you want me to send it to you?

BlueRayDick:
This is another thing people are getting wrong ; THE PIA.

The PIA like some of Nigerian laws is another vague document that is not specific in addressing critical matters appropriately (matters the local allocation of crude u are referring to )

For example, the PIA was not clear/specific on the quantity of oil that must be allocated to local refineries . Nowhere in the act did it say local refineries must get all their crude from Nigeria’s portion of crude.

So when NNPC is unable to give them the quantity they require , they have no choice but to refer them to IOCs operating in Nigeria . The IOCs unlike Dangote have a lot of forward contracts already signed with other refineries all over the world to supply them at the normal regular price . It is only normal for them to sell above premium to u at that point because u are in dire need of the crude .

I don’t the process our law makers use in drafting laws but I think they need to always carry relevant stakeholders along so that some of these laws can actually be specific and address the most critical issues . It’s not just PIA if u check several other legislations like Electoral act, u will see vagueness and inconsistency in some of its provisions

The IOC's cannot fulfil their contracts because the DCSO in the PIA has been triggered.

That's the place Dangote has used to hold them.
The IOC's now have to drag FG for the windfall in oil production that has led to this, which is no fault of Dangote.

It's one thing to say we have high oil production so everybody can get oil easily. Sadly we don't and the PIA has created a DSCO (energy security) to address that part. Unless I am missing something here.

BlueRayDick:
This is another thing people are getting wrong ; THE PIA.

The PIA like some of Nigerian laws is another vague document that is not specific in addressing critical matters appropriately (matters the local allocation of crude u are referring to )

For example, the PIA was not clear/specific on the quantity of oil that must be allocated to local refineries . Nowhere in the act did it say local refineries must get all their crude from Nigeria’s portion of crude.

So when NNPC is unable to give them the quantity they require , they have no choice but to refer them to IOCs operating in Nigeria . The IOCs unlike Dangote have a lot of forward contracts already signed with other refineries all over the world to supply them at the normal regular price . It is only normal for them to sell above premium to u at that point because u are in dire need of the crude .

I don’t the process our law makers use in drafting laws but I think they need to always carry relevant stakeholders along so that some of these laws can actually be specific and address the most critical issues . It’s not just PIA if u check several other legislations like Electoral act, u will see vagueness and inconsistency in some of its provisions

I understand this but let us tackle these issues one after the other.

The DCSO in the PIA mandates the FG to ensure the necessary crude oil supply at market price to local refineries.
This document was agreed with the IOC's before it was passed as law.
They also know it exists outside of their existing deals.

The image below gives an understanding to what happens.
Before oil is sold outside Nigeria, the act states that Dangote has to first buy the amount of crude oil he deems necessary for the refinery. If the IOC's do not agree, the FG is mandated to not issue export permit.
They all agreed to it.

God see me dey fight for this mumu man🙄


So the question is why is FG not doing that?
Dangote has not said he can't pay the market price for oil.
So wetin be the issue gan gan?
It's not illegal and the IOC's can't claim they don't know about it because they were all carried along during the development of the PIA.
Unless they come and tell Nigerians something new that we don't know sha

Ibime:
I believe the nail must be having migraines by now cos you keep hitting it on the head.

Either Dangote has contract for supply of crude or he does not.

Na simple sturvs.

I don't believe anyone is compelled to do anything in business unless they have contractual agreement. Once you align with a suppliers profit motive or legal obligation, there is no need for long talk or reh reh reh. Business is not vibes and inshi-Allah.

The devil is in the detail here. Dangote may argue that Government has a moral obligation to subsidise the nations internal crude demand and supply crude in Naira at a discount. Is that crude demand 650,000 barrels (refinery capacity), 100,000 barrels or 200,000 barrels? Govt supplying anything above Nigerias internal demand is subsidising Dangotes profit margin, not Nigerians

Let's assume Nigerians only actually consume 100,000 barrels per day and NNPC supplies Dangote 650,000 barrells at discount. The excess 550,000 barrells will be exported at international market prices to Dangotes benefit. So it's important to establish Nigerias internal demand and only supply him that amount at discount if we are to agree that all Nigerians deserve a subsidy windfall as a result of our citizenship. We must be precise when dealing with numbers.

The honest truth is Dangote is only supplying diesel at the moment and Government has no historical moral obligation with its citizens to subsidise diesel for them. We may discuss FG providing petrol subsidy to its citizens via Dangote when Dangote is in a position to supply PMS. Until then, Dangote is a normal market participant like any other and must compete for supply like any other by paying the market price for supply.

The whole point of refinery is to make your profit by adding value through the refining process. The input price of crude should not matter unless you are a rent seeker. Your profit is the difference in price between refined crude and unrefined crude less your costs. If Dangote wants Nigerian crude, he should bid the right price. Anything else na story.

How many times have we read that dozens of ships with Nigerian crude are just parked in the high seas awaiting buyers who are not forthcoming from time to time. Dangote can have Nigerian crude if he pays the right price, what he wants is discount as always ontop say na Diesel him want produce and FG does not subsidise diesel.

But this issue has been trashed.
Dangote doesn't want discount ooo.
He wants to pay the actual price of crude and not the price the IOC state for him after adding multiple charges (which is against the PIA they all signed).

BlueRayDick:
It was really funny seeing Rufai not keeping calm to learn instead he was more interested in discussing the *Malta Debacle*. He was hassling the Kachikwu guy like the guy was APC/FG/NNPC spokesperson .

I believe they brought the guy in to share his perspective and also educate the public about the issues and non-issues over the whole Dangote Refinery matter . To me , Rufai was just seeing it as another opportunity to knock APC/FG for their numerous mess-ups.

The main issue : WHAT WAS DANGOTE’s PLAN ON SOURCING FEEDSTOCK ?

If he has any legal document/contract that FG has breached , let him enforce his right to seek redress through available channels . You don’t run such a multi-billion dollar venture on hope and “Trust me bro, I go lie for u ? “ 😂

I thought the inability for NNPC to provide a certain amount of crude oil also was part of the reason their 20% reduced to 7% stake

Theflint1:
A perspective on the Dangote vs NNPC issue

Larride, LivelongnProspa, BlueRayDick, Izzou


https://www.youtube.com/watch?v=rA7leQMzhFg

https://www.youtube.com/watch?v=ibgzSu_Q2xI?si=HWnHPDXlP7xZxd54

Watch this too

iamoyindamola:
Location?

Lagos

Theflint1:
There are things that could make it cheaper sha, things like cost of labor and haulage costs, but like you said one would need dive deep to know what his real costs are.

Exactly.

So we gats wait

BlueRayDick:
U are missing the point.

Dangote could've decided to sell diesel for the normal N1,400/liter that importers sell without subsidy. However, he knows if he does that he will be struggling for market share with those importers. Instead he cuts his price as a new entrant into the market to steal a chunk of their market share.

In due time when the price cutting is longer sustainable , he will jack up his price but he would've gained enough market share at their point and maybe some of the importers would've been out of business.

As for making petrol price lower, that's a tall dream. NNPC is still a major player still paying subsidy on PMS. For his price cutting strategy to work for PMS, something has to give. Either NNPC/FG kicks subsidy fully out of the door and have a gentleman agreement with Dangote to sell cheap(which will be difficlut now that they don't even have enough crude to give him) or they start paying him the subsidy instead of the importers/marketers.

OH nnpc can just buy from him and sell to the rest cheaper.
Point is for Dangote to succeed, nnpc will have to stop importation and buy from him alone or still import and then also subsidise his PMS or last last sell crude to him on cheap.

Point is subsidy must be involved

OkpaNsukkaisBae:
If Barca can keep their house in order.. They may only succeed in Europe.. Nothing much for them in Spain

Lmao with which team will barca use to succeed in UCL.. Oooh you mean europa

izzou:
[color=royalblue]Crude that was just approved last week abi two weeks?

Since when Dangote started, he was importing and selling at 1,000 to marketers.
[/color]

I am telling you the man is either getting crude cheap or FG is paying him.

One of the 2.

The 3rd unlike option is Dangote selling cheaper than he bough crude which we know is a lie.

Another possibility could be the contents he used in making diesel aren't as expensive as that for making PMS.

Again someone will have to do a deep dive into that

Benin boys😁

izzou:
[color=royalblue]I really hope Dangote sells Petrol for 600/litre, so all those marketers running mouth about monopoly, can buy dollar at 1630 and come and sell fuel at 550/litre[/color]

If nnpc pays the subsidy to him then sure thing.

Anything outside of that is just casual hope😁.