It Doesn’t Make Sense To Export Crude And Not Supply Dangote Refinery — Rewane


The Managing Director of Financial Derivatives Company Limited made this known during a live appearance on Channels Television's Business Morning show.


Renowned economist, Bismarck Rewane, says it makes no sense for the country to export crude on Forward Contract and not supply indigenous firm, Dangote Refinery.

He said by securing its first cargo deal of about six million barrels, the Dangote Refinery will be able to get crude in Nigeria, refine it in Nigeria and export refined petroleum products to West African countries.

The economist said, “It doesn’t make sense for Nigeria to be exporting crude on Forward Contract and not be able to refine its own product for its own citizens and for West and Central Africa, it doesn’t make sense.

“This refinery is likely to be listed in the Nigerian Stock Exchange 2024-2025. By listing this $19bn to $20bn investment, it increases market capitalization of the Nigerian Stock Market by 60 percent.

“Not only that, the Dangote Group itself pays taxes of over N146bn a year and pays dividends to share holders of N357bn a year.

“So, N146bn a year and N357bn a year taxes; It is not a capitalistic investment but it is democratising the process of shareholders just like when MTN was a private company.

“When MTN declares a dividend today, everybody in town is happy because its ownership is democratised. It is now considered to be Nigerian and that’s transformation. The same thing is happening for these kind of companies which are dominant and leaders in all industries.”

The refinery sited in Lagos and owned by Africa’s richest man, Aliko Dangote, is expected to commence operations in December with 350,000 barrels a day.


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

forgiveness:
Exactly. Crude oil in Nigeria must first be sufficient enough for local production before selling it abroad.

It's no longer business as usual.

seunmsg:


The problem is that we've mortgaged all our current and next year crude oil production during the Buahri administration. We sold everything on forward contracts so all our production have been paid for already. What we are doing now is simply producing and supplying what we have been paid for. So, the only option is to increase crude production what we have sold on future contracts. That's why the president is trying to settle some of the OML and OPLs currently not in production as a result of dispute. That is why the ENI case was withdrawn in Italy and why government has commenced the process of auctioning oil wells. That's why the president is moving from UAE to Saudi Arabia to discuss how to increase our OPEC quota and how to get them to invest in the expansion of crude oil production in Nigeria.

MEEVEET:
The thing is this there is no how dangote can buy crude at the international price and sale at 600 it's impossible

Unless nnpc would buy at 1200 and sale at 600 that's the only way

Remove subsidy and watch multiple refineries sprint up

seunmsg:


The problem is that we've mortgaged all our current and next year crude oil production during the Buahri administration. We sold everything on forward contracts so all our production have been paid for already. What we are doing now is simply producing and supplying what we have been paid for. So, the only option is to increase crude production what we have sold on future contracts. That's why the president is trying to settle some of the OML and OPLs currently not in production as a result of dispute. That is why the ENI case was withdrawn in Italy and why government has commenced the process of auctioning oil wells. That's why the president is moving from UAE to Saudi Arabia to discuss how to increase our OPEC quota and how to get them to invest in the expansion of crude oil production in Nigeria.

seunmsg:


The problem is that we've mortgaged all our current and next year crude oil production during the Buahri administration. We sold everything on forward contracts so all our production have been paid for already. What we are doing now is simply producing and supplying what we have been paid for. So, the only option is to increase our crude production to go above what we have sold on future contracts. That's why the president is trying to settle some of the OML and OPLs currently not in production as a result of dispute. That is why the ENI case was withdrawn in Italy and why government has commenced the process of auctioning oil wells. That's why the president is moving from UAE to Saudi Arabia to discuss how to increase our OPEC quota and how to get them to invest in the expansion of crude oil production in Nigeria.

KillahPriest:
So you people knew all these things yet kept quiet while the country plunged into the then worst economic catastrophe in it's history instead, you were abusing and gaslighting those of us who raised alarm severally. What the bloody hell

nedu666:



So where is the money realised from the sale.

seunmsg:


The Buhari administration faced a very difficult economic situation. Crude oil went as low as 25$ when he took and this plunged the country into recession. As we were gradually recovering from the recession, COVID-19 came in and brought the entire economy on its kneel. Crude oil went as low as 1$. When the locked down ease, the government had no choice than think of every single means to raise money for the survival of the country. The several loans, ways and means and future contracts did the magic. Now, we have to pay for it. Eat now, pay in the future. It is what it is.

KillahPriest:
Tinubu removed subsidy on May 29th 2023

MEEVEET:

Tinubu remove subsidy and you are buying fuel for 680

While diesel is 1250 ?

Lmao which school you go abeg?

seunmsg:


The Buhari administration faced a very difficult economic situation. Crude oil went as low as 25$ when he took and this plunged the country into recession. As we were gradually recovering from the recession, COVID-19 came in and brought the entire economy on its kneel. Crude oil went as low as 1$. When the locked down ease, the government had no choice than think of every single means to raise money for the survival of the country. The several loans, ways and means and future contracts did the magic. Now, we have to pay for it. Eat now, pay in the future. It is what it is.

Masterstroke4:
It so Shamefull that NNPC Export Oil To India, China, Spain, France, but Can not Supply Enough crude oil To Dangote

DEXTROVERT:
By the time
We no
Longer
Import
Petroleum products
What
Will
Happen
To
Those
Government
Owned
US and UK refineries
That
Supply us
With the product despite we
Don't
Produce dollars to buy it.

So
May be
The forces
That have held us back
All
These
Years from
Self reliance on energy
Are fighting dangote.

Even those canals
That solely import
Petroleum products
In unknown figures and yet quote plenty money

No
Wonder
Refineries never worked in Nigeria