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Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? - Business (3) - Nairaland

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Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by FarahAideed: 10:47pm On Jul 16, 2021
Dangote refinery is beginning to smell like a mega loan Fraud

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by SocialJustice: 10:52pm On Jul 16, 2021
sulaak:
I doubt the Nigerian government can raise $4 billion in loans to invest in an overprice oil refinery. If outside investors are shunning the Dangote refinery project then there must be some serious problems.


It's crazy to think Dangote has over leveraged Dangote group to finance this project and the whole group is at risk of being insolvent just to service loans even with the super normal profits being made by Dangote cement.

Nigeria on the other hand is over stretched too to secure senseless loans as debt to income ratio is over 70%.

I wonder why Dangote didn't break this project into 2 or 3 trains. A train can't take more than 2 years to complete.

Time will unravel all. I truly wonder

6 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by 9jaRealist: 10:58pm On Jul 16, 2021
descarado:
Politicians and Nigerian govt built that refinery.
Dangote isn't an astute business man.

We will hear lots of news about that refinery as time goes on.

Meanwhile orient refinery in imo is almost complete and nobody heard pim. No hype except releasing statement wen necessary.
Nobody see the man for asorock.

Dangote, singlehandedly man billionaire by Nigerian government. They can unmade him but north always protect their own.
A lesson South is yet to learn

The Orient Refinery is in ANAMBRA State…
And was commissioned by President Jonathan years ago.

More (tribal -inspired) IGNORANCE parading as public commentary in Nigeria. SMH
>

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Jlow2: 10:59pm On Jul 16, 2021
Rahkman:
Make obi cubana and him friends come build refinery now him think say na by club?
if fg give CUBANA one third of what was given to dangote he will buy 19northern States

2 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by ovie8200: 11:00pm On Jul 16, 2021
mbahdi:
Dangote d mvp of nigeria.a good man with a devil's heart

Stop calling him a good man with an evil's heart. The same they say about illiterate Buhari.

They are evil with evil hearts period. Whoever will be good will be good with no evil attaching to it.

3 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by nextstep(m): 11:00pm On Jul 16, 2021
Another article to sow FUD (fear uncertainty doubt).
This refinery is a game changer, not just for Nigeria, but indeed for Africans.

Foreign companies (and I'm looking at you France) who have a stake in selling refined products to us have been on a steady campaign of discrediting this gargantuan project. Nobody in the West should be talking crap about bailout, since their governments have repeatedly bailed out their industries, and actively provide subsidies/tax breaks to their own companies to stave off insolvency.

We've been waiting for years now, witnessing the push back, but we're seeing steady progress. Didn't the fertilizer section take off last month?

People saying: "taking Chukwuemeka money to enrich Haruna... what are Obi Cubana's people doing with all their money this weekend?" Naturally, the reply would be that Dangote was granted a monopoly... really? Why didn't they apply during OBJ and GEJ time for license, especially when Deziani was petroleum minister for 5years? This refinery didn't start during PMB's time you know.

This is a huge project - even me with my small small real estate have encountered delays and various issues - but we press on. When this comes on stream, the trajectory of this country will continue to change for the better.

8 Likes 2 Shares

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by onoja12: 11:03pm On Jul 16, 2021
Highly laughable, somebody please inform the French that Nigeria is not a francophone country, that refinery would come online and dangote would still remain standing infact he would move in on more African countries because Africa is not haiti.

6 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by 9jaRealist: 11:03pm On Jul 16, 2021
sulaak:
I doubt the Nigerian government can raise $4 billion in loans to invest in an overprice oil refinery. If outside investors are shunning the Dangote refinery project then there must be some serious problems.
SocialJustice:
It's crazy to think Dangote has over leveraged Dangote group to finance this project and the whole group is at risk of being insolvent just to service loans even with the super normal profits being made by Dangote cement.

Nigeria on the other hand is over stretched too to secure senseless loans as debt to income is over 70%.

Time will unravel all. I truly wonder

The Dangote refinery is NOT looking for outside investment…
Although a number of global oil traders (such Vitol and Trafigura) has reportedly approached it to secure supplies.

In fact, the NNPC itself has stated that DANGOTE DOES NOT WANT TO SELL ANY EQUITY…
See this recent news report: https://punchng.com/refinery-dangote-not-happy-with-nnpc-proposed-stake-acquisition-says-kyari/

Furthermore, neither it nor the group is “over leveraged”…
This project is going to be a veritable cash cow and is already exporting urea fertilizers to the US and Brazil.
>
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by 9jaRealist: 11:13pm On Jul 16, 2021
nextstep:
Another article to sow FUD (fear uncertainty doubt).
This refinery is a game changer, not just for Nigeria, but indeed for Africans.

Foreign companies (and I'm looking at you France) who have a stake in selling refined products to us have been on a steady campaign of discrediting this gargantuan project. Nobody in the West should be talking crap about bailout, since their governments have repeatedly bailed out their industries, and actively provide subsidies/tax breaks to their own companies to stave off insolvency.

We've been waiting for years now, witnessing the push back, but we're seeing steady progress. Didn't the fertilizer section take off last month?

People saying: "taking Chukwuemeka money to enrich Haruna... what are Obi Cubana's people doing with all their money this weekend?" Naturally, the reply would be that Dangote was granted a monopoly... really? Why didn't they apply during OBJ and GEJ time for license, especially when Deziani was petroleum minister? This refinery didn't start during PMB's time you know.

This is a huge project - even me with my small small real estate have encountered delays and various issues - but we press on. When this comes on stream, the trajectory of this country will continue to change for the better.

WELL SAID!

Too many small-minded ethnic demagogues here are busy chasing petty tribal agendas. SMH

>

5 Likes 2 Shares

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by nextstep(m): 11:16pm On Jul 16, 2021
Yankee101:
Dangote, Rabiu, Otedola, Adenuga all na scam

They corrupt govt officials with bribes and change state policy to suit them exclusively

That's a very funny allegation, coming from citizens who bribe officials to speed up their driver's license and passport applications. We also give a little something for the boys in black. We also dash to the omoniles and LGA chairmen so our building project won't be hampered. Even to supply chairs to a government parastatal, you must share your proceeds with the oga in charge, else you don't get the contract. I don't see why we should complain that the big boys also do the same to see their projects through.

8 Likes 1 Share

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by anthony86(m): 11:18pm On Jul 16, 2021
No wonder the cost of cement increased recently.

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by NwaNimo1(m): 11:19pm On Jul 16, 2021
kln
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by NwaNimo1(m): 11:20pm On Jul 16, 2021
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by grandstar(m): 11:21pm On Jul 16, 2021
This report is vicious and mean. The writer seems delighted that Dangote has beaten more than he can chew and will soon sink.

As much as I disagree with rhe way he does his business, this refinery will do the country a lot of good. He should be praised for such foresight and taking a big risk where others have feared to thread.

The project was taking long to complete, even when we take into consideration its size. I am shocked he did not know how to organize the construction. Does he not have a project manager with many years experience?

If he is ready to eat humble pie, this project can still be completed despite the dearth of cash if true. All he has to do is to sell stakes to investors. This will reduce his stake but will ensure the completion of the project.

5 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Yankee101: 11:23pm On Jul 16, 2021
When you bribe to get cement monopoly and kick out the Ibetos, or lock the border to the entire country and allow only yourself import ish, or participate in non oil subsidies for non existent oil shipments, that is economic sabotage. The kind china would shoot you for


nextstep:


That's a very funny allegation, coming from citizens who bribe officials to speed up their driver's license and passport applications. We also give a little something for the boys in black. We also dash to the omoniles and LGA chairmen so our building project won't be hampered. Even to supply chairs to a government parastatal, you must share your proceeds with the oga in charge, else you don't get the contract. I don't see why we should complain that the big boys also do the same to see their projects through.

3 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by freegaza(m): 11:35pm On Jul 16, 2021
Yankee101:
When you bribe to get cement monopoly and kick out the Ibetos, or lock the border to the entire country and allow only yourself import ish, or participate in non oil subsidies for non existent oil shipments, that is economic sabotage. The kind china would shoot you for



What is monopoly? How many cement companies are in Nigeria now?

1 Like 1 Share

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Aganju849: 11:39pm On Jul 16, 2021
Crunchyg2:
Hello good people of nairaland. I run a POS business which I just got a new location which I want to open a second POS but my challenge is enough fund. I need someone who can invest 100k and get 10k return every month or 50k and get 5k return every month and anytime you are ready to take your initial capital back you can take it. I am in Lagos and I am ready to provide you any thing that you might need as collateral . My number is below on my signature.

Na old film be this one wey you dey try put for box office...something wey cast since way back 2012

5 Likes

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by SIRTee15: 11:40pm On Jul 16, 2021
grandstar:
This report is vicious and mean. The writer seems delighted that Dangote has beaten more than he can chew and will soon sink.

As much as I disagree with rhe way he does his business, this refinery will do the country a lot of good. He should be praised for such foresight and taking a big risk where others have feared to thread.

The project was taking long to complete, even when we take into consideration its size. I am shocked he did not know how to organize the construction. Does he not have a project manager with many years experience?

If he is ready to eat humble pie, this project can still be completed despite the dearth of cash if true. [b]All he has to do is to sell stakes to investors. This will reduce his stake but will ensure the completion of the [/b]project.

I think this is the major issue. Refinery business is not really a profitable venture that guarantees quick return on investment. Its a very low profit margin business.
It's going to be hard to attract foreign investors that won't demand two arms n two legs especially in a volatile region like nigeria. Dangote may end up becoming a minority stakeholder.
However, the refinery is too big to fail. A lot is at stake here. FG will have to find a way to ensure its completion...if it means taking over.

I doubt local investors can be of any help. Or is it not nigerian bank collecting 700 million dollars every year over a 7.5 billion loan. Na wa o.
Maybe Cubana and his boys can come to his rescue. undecided

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by zanshi: 11:41pm On Jul 16, 2021
You are correct. The original completion of the project was 2016 and ever since then it has been moved several times.

He could have extended equity to the NIgerian Govt and use it to fast track it.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by calcal: 11:43pm On Jul 16, 2021
Those employees that Dangote continues to kill should be the ones to construct the refinery from scratch and continue to manage it, this is the way it works in developed countries.

Once you don't have that, it means he won't be able to manage the refinery, any foreign sanction, the refinery will collapse since he depends on foreigners for any serious repair works.

Highbeepeeh:
sad

Is not that am too lazy o...
but how do you expect me to go through all this note before I can get the message....

I bet 99% of people won't read what OP post rather they'll skip to read comments.

See Nigeria get Nigerians problem
One Day Nigeria will be save from Nigerians problem, then Nigerians will make Nigeria great.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by nextstep(m): 11:48pm On Jul 16, 2021
Yankee101:
When you bribe to get cement monopoly and kick out the Ibetos, or lock the border to the entire country and allow only yourself import ish, or participate in non oil subsidies for non existent oil shipments, that is economic sabotage. The kind china would shoot you for

This old yarn? Please provide evidence for what you're saying. I've been hearing it, but nobody shows solid evidence.

In 2006, OBJ (from South) shutdown Ibeto Cement. Why? The import license clearly stated they should also manufacture, however Ibeto was allegedly merely re-bagging cement. I say allegedly, because I wasn't there. Yar’Adua (from North) caused the plant to be reopened. All I've heard since is that Ibeto's shipment from overseas has repeatedly been halted. Tell me, if you manufacture, why will you have bulk cement on ships inbound?

If indeed there is a policy to "keep the Igbo man down", is the solution complaining, or learning to play the game? The Igbo men who own over 60% of car industry (importing and manufacturing), wire-making industry, plastic industry, airlines, mass transport, financial industry, real estate in Abuja, etc... is somebody keeping them down too? Abi we should label them monopolists too for cornering their various industries?

If Igbos were serious, none of us would use Dangote cement in our projects, if indeed Ibeto is being unfairly targetted.

4 Likes 1 Share

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by benzine: 11:50pm On Jul 16, 2021
So where is the oil for the refinery coming from? Has anyone discussed with the militants yet? Una go hear am

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by nextstep(m): 11:50pm On Jul 16, 2021
zanshi:
You are correct. The original completion of the project was 2016 and ever since then it has been moved several times.
He could have extended equity to the NIgerian Govt and use it to fast track it.

Kiikiikiikiii... I laugh in Swahili. Did somebody put Nigerian Gov't and "fast track" in the same sentence? I'm still waiting for Ajaokuta. LWKMD grin grin

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by UbongJamesAkpan(m): 11:50pm On Jul 16, 2021
we have heard o
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by UbongJamesAkpan(m): 11:52pm On Jul 16, 2021
nextstep:


Kiikiikiikiii... I laugh in Swahili. Did somebody put Nigerian Gov't and "fast track" in the same sentence? I'm still waiting for Ajaokuta. LWKMD grin grin
no be juju be that

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Darkblood: 11:53pm On Jul 16, 2021
Lol
Ehn
I don't know o. Don't know him. Will pay attention to him more now.
Bmc ponmo bastards
Siwisheswereesh:


That one is a hustler... a nuisance cum loooonatic! angry

1 Like

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Litmus: 12:00am On Jul 17, 2021
As long as Dangote works with Indians he's bleeped
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by jaxxy(m): 12:01am On Jul 17, 2021
mbahdi:
Dangote d mvp of nigeria.a good man with a devil's heart

Dangote is a simple and shrewd business man doing a monopoly business like any other business man would. I really don’t see much need for the hate and envy. He’s not the first not the last to have monopoly advantage in a business sector. Even in America it happened.

That said this report is full of unnecessary bad blood. This is a humongous project and I think all Nigerians should be proud to identify with it and wish for it to be nothing but a success. I will do nobody good if dangote refinery falls. We will all suffer from such failure.

If there were errors made in the project management team i hope it’s rectified soonest and the refinery begins earlier than this report states. If dangote benefits and recoups his investment and settled his debits Nigeria will also gain from his success one way or the other just like shoprite, mtn and many other multinationals investing in the country.

So while we are being objective let’s also be compassionate, human and business minded. This refinery must be a success. Period.

It is too much money to be wasted.

2 Likes 1 Share

Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by jaxxy(m): 12:06am On Jul 17, 2021
Yankee101:
Dangote, Rabiu, Otedola, Adenuga all na scam

They corrupt govt officials with bribes and change state policy to suit them exclusively

With the scale of this project government has to support it even if it means changing policies. Obasanjo did same to boost local manufacturing business. Same thing Buhari tried to do bt closing borders. It’s not only dangote.

That refinery must serve Nigerians.
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by hunter21(m): 12:10am On Jul 17, 2021
nextstep:
Another article to sow FUD (fear uncertainty doubt).
This refinery is a game changer, not just for Nigeria, but indeed for Africans.

Foreign companies (and I'm looking at you France) who have a stake in selling refined products to us have been on a steady campaign of discrediting this gargantuan project. Nobody in the West should be talking crap about bailout, since their governments have repeatedly bailed out their industries, and actively provide subsidies/tax breaks to their own companies to stave off insolvency.

We've been waiting for years now, witnessing the push back, but we're seeing steady progress. Didn't the fertilizer section take off last month?

People saying: "taking Chukwuemeka money to enrich Haruna... what are Obi Cubana's people doing with all their money this weekend?" Naturally, the reply would be that Dangote was granted a monopoly... really? Why didn't they apply during OBJ and GEJ time for license, especially when Deziani was petroleum minister for 5years? This refinery didn't start during PMB's time you know.

This is a huge project - even me with my small small real estate have encountered delays and various issues - but we press on. When this comes on stream, the trajectory of this country will continue to change for the better.
Cool
Re: Dangote Refinery: Bailing Out The Unbailable - Investment Or Bailout? by Bundaweber: 12:16am On Jul 17, 2021
9jaRealist:


How is it humanly possible to cram so much IGNORANCE into one article? sad
Mr. Bako must be the sort of “seasoned economists” that have been in charge of the hapless Nigerian economy.

First, the NNPC is planning to take 20% in SIX private refineries, not just Dangote’s…
See this Reuters article: https://www.reuters.com/article/nigeria-refinery-equity-idAFL2N2NI1QL

Nonetheless, as already discussed here on Nairaland, Dangote is NOT HAPPY with the proposed acquisition…
See the following thread: https://www.nairaland.com/6626446/mele-kyari-refinery-dangote-not


Meanwhile, Dangote Refinery BOUGHT (not gifted) forex from the CBN forex window…
At the OFFICIAL rate that it’s sold to ALL companies in the real sector (not to mention for school fees, travel, health tourism, etc.).

The obtuse drivel about costing and delays merely amplifies this dude’s cluelessness. No other refinery project elsewhere involves reclaiming land bigger than Victoria Island and building a virtual port, because Apapa cannot handle the equipment for this project. Furthermore, dude seems clueless that Covid disrupted value-chains GLOBALLY (or does he think the equipment is manufactured in Nigeria) and consequently delayed most (if not ALL) large-scale infrastructure projects around the world.


Finally, debt to build a refinery would be long-term…
Therefore, it is SILLY to peddle beer-parlor rumors about banks already calling in their loans.

So many Nigerians love to attack success while celebrating mediocrity and failure…
Whether it is due to primordial ethnic sentiments, envy or just darn right IGNORANCE, it’s a succinct self-indictment!

>



succinctly put!! Thank you. I was reading the article and I thought I was in an alternate reality

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