₦airaland Forum

Nigeria is so corrupt

Dangote should let us know how much the Refinery sells to Marketers.

nwirinedu:
What he conveniently left out is that not just anyone can goto dangote refinery to buy PMS. Dangote sells exclusively to NNPCL.

NNPC being the sole primary wholesaler may actually be a good thing.

It could herald more transparency.

1. Because it is such a modern production facility, Dangote refinery will know on a per second basis the quantity of fuel loaded by NNPC, and Mr Dangote has said the figures will be reported. This is good because if you have NNPC and other wholesalers loading, NNPC can use their usual magomago to hide their own loading figures.

2. The exact price that Dangote sells to NNPC will be known. The refinery was partly financed by foreign institutional lenders. The financing contract will have a reporting clause under which the refinery will have to disclose certain commercial information. So whether directly or indirectly, the foreign lenders will know the prices and that information will most certainly get out.

3. With NNPC being the sole primary wholesaler, it should be easier for NNPC to identify and ban (retailers) who sell at exploitative prices. So, basically, better control over retail price by government/NNPC. Price certainty and stability will benefit the people.

Finally, if reports that the FEC will be involved in setting final prices is correct, again this will bring better transparency because any shenanigans by APC will be leaked by the PDP and other opposition Governors. All Governors are members of the FEC. This too is good.

Overall, I think some of the proposals being reported may herald a new era of transparency in the petrol supply chain.

Let us be patient and see how things work.

DeLaRue:
NNPC being the sole primary wholesaler may actually be a good thing.

It could herald more transparency.

1. Because it is such a modern production facility, Dangote refinery will know on a per second basis the quantity of fuel oaded by NNPC, and Mr Dangote has said the figures will be announced.

2. The exact price that Dangote sells to NNPC will be known. The refinery was partly financed by foreign institutional lenders. The financing contract will have a reporting clause under which the refinery will have to disclose information such as quantity and pricing directly or indirectly. So, this information will most certainly get out.

3. With NNPC being the sole primary wholesaler, it should be easier for NNPC to identify and ban (retailers) who sell at exploitative prices. So, basically, better control over retail price by government/NNPC. Price certainty and stability will benefit the people.

Finally, reports that the FEC will be involved in setting final prices is correct, again this will bring better transparency because any shenanigans by APC will be leaked by the PDP and other opposition Governors within the FEC.

Overall, I think some of the proposals being reported may herald a new era of transparency in the petrol supply chain.

Let us be patient and see how ithry work.

You ve not addressed anything, here, we have major petroleum distributors in Nigeria why cant Dangote deal with them directly, why do they have to pass through an agency with a proven record of mismanagement and corruption.

These are the concerns of rational people, the abrupt increase in by price across NNPC dealer stations is irresponsible, they corporate denial is a collective insult to the populace.

Melagros:
COMRADES, these evil cabals won't kill us finish for this country oo

Who is the cabal when it is only the government that imports pms until the deregulation by tinubu and they had to withdraw due to dollar and exchange instability ?

Them don start again.
Dangote must tell us how much they are selling to NNPCL, so we know how much those ones will add to the price and how much the filling stations will sell. We want full transparency.

The cabal will frustrate Dangote more, from the way some are sounding.

nwirinedu:
You ve not addressed anything, here, we have major petroleum distributors in Nigeria why cant Dangote deal with them directly, why do they have to pass through an agency with a proven record of mismanagement and corruption.
.

NNPC only increased its price a couple of days ago, yet for several months petrol have been sold at between N650 and N1000 in the country even though the wholesalers bought from the NNPC at the same price.

So, what is the justification for the huge difference in retail price? Greed, price manipulation, and exploitation of ordinary people by the evil machinations of wholesalers and filling stations.

You prefer for the greedy middle men to be allowed to continue their manipulation?

We need a new approach.

If NNPC is the sole primary wholesaler from Dangote, thus allowing NNPC to cut out greedy, uncontrollable middlemen, then all filling stations can buy directly from NNPC AT THE SAME PRICE. No more middle men (secondary wholesalers).

It would then be difficult for a filling station in Egbeda to sell at N900, while another station in Maryland sells at N700. Right now, their justification is, well we bought from the wholesalers (middlemen) at so so price, so what can we do. Well, let's remove those wholesalers and see if any filling station can sell at N200 or N300 per litre more than another filling station in the same town who bought from the NNPC at the same price as him.

If the new model works well, prices should become similar in all stations. That will give consumers certainty, and exterminate greedy tendencies.

Either

DANGOTE

Or

CHINA

Will

Buy

NIGERIA

ONE DAY.

DeLaRue:
NNPC only increased its price a couple of days ago, yet for several months petrol have been sold at between N650 and N1000 in the country even though the wholesalers bought from the NNPC at the same price.

So, what is the justification for the huge difference in retail price? Greed, price manipulation, and exploitation of ordinary people by the evil machinations of wholesalers and filling stations.

You prefer for the greedy middle men to be allowed to continue their manipulation?

We need a new approach.

If NNPC is the sole primary wholesaler from Dangote, thus allowing NNPC to cut out greedy, uncontrollable middlemen, then all filling stations can buy directly from NNPC AT THE SAME PRICE. No more middle men (secondary wholesalers).

It would then be difficult for a filling station in Egbeda to sell at N900, while another station in Maryland sells at N700. Right now, their justification is, well we bought from the wholesalers (middlemen) at so so price, so what can we do. Well, let's remove those wholesalers and see if any filling station can sell at N200 or N300 more that another filling station in the same town who bought from the NNPC at the same price as him.

If the new model works well, prices should become similar in all stations. That will give consumers certainty, and exterminate greedy tendencies.

Prices cannot be the same across the nation because of distance, but what dyu you care . I find the statement on greedy middle men ludicrous.

What would you call the current supplier and his partner, judging from their antecedents?

If not that Nigeria is a messed up society how can somebody be making such nonsensic statements that the manufacturer of a product does not have power to fix her price.

What can't they tell that to producers of other products.

Somebody BUYS Crude from nnpc and converts to converts to finished product yet you open mouth and say he can't determine price.

All of una dey mard

adedayourt:
If not that Nigeria is a messed up society how can somebody be making such nonsensic statements that the manufacturer of a product does not have power to fix her price.

What can't they tell that to producers of other products.

Somebody BUYS Crude from nnpc and converts to converts to finished product yet you open mouth and say he can't determine price.

All of una dey mard

you are not well informed

DeLaRue:
Part of the problem is that virtually every one in Nigeria wants to have a say on how much Mr Dangote must sell his fuel.

Yet, we don't dictate to Nestle or the manufacturers of Indomie how much they must sell their products. Did we dash money to Mr Dangote to build his refinery?

From a commercial perspective, petrol is just a product. The manufacturer, Dangote refinery, cannot sell below the price it cost to produce it.

Dangote Refinery is not a Charity. Infact, it needs to pay back billions of dollars in loans, or foreign creditors will seize the refinery and close it down.

The government has said NNPC will be the primary wholesaler. I think this is potentially a good decision because it will give the government the ability to moderate exploitative pricing by greedy, unscrupulous middlemen, like we are currently having.

The milions of people who are so worked up about what the price should be are not experts in fuel pricing nor do they have all the necessary information.

People should calm down and allow Dangote refineries and the government to negotiate and announce price.

Fuel is a capital commodity
Dangote, NNPC or FG has no business determining the end price.
What Government should be concerned about is the tax gotten from the transactions.
NNPC profit
Dangote : Production,
This is the only thing that can encourage competition and at the end of the day bring down prices.

INTEGRITYA1:
These people want to keep maintaining the high level of secrecy through which they will keep feeding fat on National wealth.

The subsidy through which they have been making shady incomes is gradually fading away and they are diversifying towards the local market.

Exactly. They still want to be maintaining d same level

thesicilian:
The only seller in the market has no business in determining the price of what he's selling? It's like these guys are trying to re-write the basics principles of economics

Exactly! He's the major player, he will sell his product to retailers at a price which is determined by how much he sells to them! Then the retailer sells to the consumers at a rate also dictated by the rate they bought from the supplier! Ultimately, how much Dangote sells to NNPCL determines how much we buy

DeLaRue:
NNPC being the sole primary wholesaler may actually be a good thing.

It could herald more transparency.

1. Because it is such a modern production facility, Dangote refinery will know on a per second basis the quantity of fuel loaded by NNPC, and Mr Dangote has said the figures will be reported. This is good because if you have NNPC and other wholesalers loading, NNPC can use their usual magomago to hide their own loading figures.

2. The exact price that Dangote sells to NNPC will be known. The refinery was partly financed by foreign institutional lenders. The financing contract will have a reporting clause under which the refinery will have to disclose certain commercial information. So whether directly or indirectly, the foreign lenders will know the prices and that information will most certainly get out.

3. With NNPC being the sole primary wholesaler, it should be easier for NNPC to identify and ban (retailers) who sell at exploitative prices. So, basically, better control over retail price by government/NNPC. Price certainty and stability will benefit the people.

Finally, if reports that the FEC will be involved in setting final prices is correct, again this will bring better transparency because any shenanigans by APC will be leaked by the PDP and other opposition Governors. All Governors are members of the FEC. This too is good.

Overall, I think some of the proposals being reported may herald a new era of transparency in the petrol supply chain.

Let us be patient and see how things work.

I want to congratulate Dangote Refinery for the giant stride and achievements of the refinery. I want to appreciate Alhaji Aliko Dangote for his efforts, investments and business activities.

However, I wonder why Alh. Dangote opined that the Federal Executive Council will be the one to determine the price of PMS (Petrol) in Nigeria. It is strange that he has that orientation especially since Dangote Refinery is a private organization and Petroleum products marketers are largely independent and privately owned.

I also agree with the statement of Mr Gabriel Idahosa, President and Chairman of Lagos Chamber of Commerce and Industry, that Dangote Refinery has no authority or power to determine the pump price of PMS (petrol) or any petroleum products sold at filling and gas stations. Dangote Refinery can only determine the Ex-Depot Price of those products loaded at Dangote Refinery; notably Dangote Refinery can not also determine the Ex-Depot price of Petroleum Products imported or refined in Nigeria by other companies or entities.

The whole confusion about the pricing and Dangote Refinery's ex-Depot price is amusing and frustrating to me. Dangote Refinery is quick to do publicity and fanfare on the production of PMS; the story was all over the media but Dangote Refinery refused to communicate their ExDepot price per litre of PMS to the public or Petroleum Marketers. Isn't that ridiculous?

Wickedness will never end under human rule.

and some humans are extremely wicked.

xpressionx:
He has the right to supply to NNPC based on his cost of production

...but NNPC does not want other petroleum oil marketers to buy fuel from Dangote refinery...NNPC is the only buyer,... that is wrong from NNPC

nwirinedu:
Prices cannot be the same across the nation because of distance, but what dyu you care . I find the statement on greedy middle men ludicrous.

What would you call the current supplier and his partner, judging from their antecedents?

I used the word 'similar', not 'same'.

Prices cannot be same across a vast country like Nigeria particularly if you're transporting the petrol by lorries instead of through pipelines.

Petrol sold in the Norther states used to get a special subsidy to ensure their fuel prices are similar to what obtains in the South.

I believe Mr Buhari stopped that special payments several years ago. I stand to be corrected.

I would personally support if the government considers measures to ensure that people further up the coast don't have to pay significantly more for petrol. However, any special payment/subsidy specifically for this purpose will be abused and turn into another monster.

The best approach would be to transport the fuel by pipelines. But we know what will happen to the pipeline!

Honestly, Nigeria is mostly ungovernable.

Obvious solutions that work in all other countries simply don't work here.

ufotunang:
...but NNPC does not want other petroleum oil marketers to buy fuel from Dangote refinery...NNPC is the only buyer,... that is wrong from NNPC

Honestly, I see no reason NNPCL should be the sole buyer of Petroleum products from Dangote Refinery. Infact, NNPCL should only buy the products meant for sale at the various NNPCL filling stations but they must not be allowed to sell to other Petroleum Marketers directly. Every Petroleum marketers like NNPCL should buy their products directly from Dangote Refinery and sell at their filling stations across Nigeria to the public.

Simple.

Minimum wage = 35k
Fuel per liter = 185 then to 591 naira

minimum wage reviewed to = 70k
Fuel now per liter = 897 naira


Is Dangote fuel a course to Nigerians or a blessing?

DeLaRue:
I used the word 'similar', not 'same'.

Prices cannot be same across a vast country like Nigeria particularly if you're transporting the petrol by lorries instead of through pipelines.

Petrol sold in the Norther states used to get a special subsidy to ensure their fuel prices are similar to what obtains in the South.

I believe Mr Buhari stopped that special payments several years ago. I stand to be corrected.

I would personally support if the government considers measures to ensure that people further up the coast don't have to pay significantly more for petrol. However, any special payment/subsidy specifically for this purpose will be abused and turn into another monster.

The best approach would be to transport the fuel by pipelines. But we know what will happen to the pipeline!

Honestly, Nigeria is mostly ungovernable.

Obvious solutions that work in all other countries simply don't work here.

It is not subsidy, It is a bridging fund packaged by Petroleum Equalization Fund (PEF) payable to Petroleum Marketers for supplies across states based on an approved templates of cost

I think PEF was merged with NMDPRA.

Kanixt:
No one is putting Dangote in a place he shouldn't be.

I think he's the one putting himself in a place he shouldn't be.

But to be clear, dangote has the factory and the production, he pays for everything so he can decide the prices. or who decided the price of cement in the market?
Bua cement chairman said they stop selling cement at 3500 ex factory when they noticed distributors are selling at 7 or 8k making more profit that the manufacturer.
So if Dangote paid for crude and production overhead and decided to sell at 300 naira ex factory, then it will be counter productive for NNPC to start selling at 868 naira

Wallade:
The whole confusion about the pricing and Dangote Refinery's ex-Depot price is amusing and frustrating to me. Dangote Refinery is quick to do publicity and fanfare on the production of PMS; the story was all over the media but Dangote Refinery refused to communicate their ExDepot price per litre of PMS to the public. Isn't that ridiculous?

The partnership between Dangote refinery and the government/NNPC is a forced partnership. Forced by circumstances.

Neither party wants to be in this relationship, but they have no choice. For now.

You're right that Mr Dangote has been trying to appear like the good guy while also trying not to ruffle the NNPC/government. For now.

You will note how in his recent interview, Mr Dangote rejected responsibility for the pricing of his own product. He said he has nothing to do with the pricing. Have you ever seen anything like that? You produce something, and then wash your hands off the price. That is because he knows price is too hot a topic right now and he doesn't want to incur the wrath of angry Nigerians.

Ofcourse he know his price.

Neither the government or Mr Dangote wants to be seen as the party responsible for the high price to be announced.

Mr Dangote will know within him that whatever price NNPC/the government finally announces will cause a huge outcry. And we know Nigerians will spend every minute of every day of every week over the next few months trying to identify how much the government buys fuel from Dangote.

Before you know it, the government in an attempt to shift the blame, will secretly reveal the price to one or two people in the media.

The price will be splashed all over the media. Arise TV will love every second and minute of the blame game that follows. It means more money for them.

Dangote will fight back, deploy resources (ie money) to his own boys in the media to say that the government sold crude oil to him at a high price.

The blame game will continue for a while with Arise TV bringing on trailer loads of qualified and unqualified 'experts' in order to ensure they pour more fuel into the controversy so that Arise can exploit the ongoing controversy to the fullest.

In the end, Nigerians will accept the price and move on to another issue, most likely, another online tribal war

Final score: Dangote wins. NNPC wins. Arise TV wins.

If you don't already know all this, ie how the rich people and government manipulate Nigerians, ah well.

faithfull18:
Other people should be allowed to build as well. Excess supply will bring down price, basic economics.

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I don't know why ADENUGA couldn't build his own.

victorDanladi:
I don't know why ADENUGA couldn't build his own.

Refining is actually a low margin business. It is not highly profitable.

If you have too many refineries in Nigeria, you end up with overcapacity, and they all become loss - making. Refineries are closing down in Europe.

Mr Dangote deserves praise for dabbling it.

Most super rich people will never dabble into refning business.

There are far more profitable businesses to invest in.

Wallade:
It is not subsidy, It is a bridging fund packaged by Petroleum Equalization Fund (PEF) payable to Petroleum Marketers for supplies across states based on an approved templates of cost

I think PEF was merged with NMDPRA.

Still a subsidy.

DeLaRue:
I used the word 'similar', not 'same'.

Prices cannot be same across a vast country like Nigeria particularly if you're transporting the petrol by lorries instead of through pipelines.

Petrol sold in the Norther states used to get a special subsidy to ensure their fuel prices are similar to what obtains in the South.

I believe Mr Buhari stopped that special payments several years ago. I stand to be corrected.

I would personally support if the government considers measures to ensure that people further up the coast don't have to pay significantly more for petrol. However, any special payment/subsidy specifically for this purpose will be abused and turn into another monster.

The best approach would be to transport the fuel by pipelines. But we know what will happen to the pipeline!

Honestly, Nigeria is mostly ungovernable.

Obvious solutions that work in all other countries simply don't work here.

Thats the same excuse irresponsible leaders make for their failure to deliver; see why I don't do arguments?

Standing5:
selling crude oil in Naira is not free. If you have proofs come forward with it. In fact the oil industry mafia offered crude to him at 2 to4 usd above intl price. That's not free either he buys in naira or dollar(forex).

You obviously don't understand what I said

thesicilian:
The only seller in the market has no business in determining the price of what he's selling? It's like these guys are trying to re-write the basics principles of economics

This is what we are saying. You guys think the real world is a place where rights have no limit. I produce pms I can sell it anyway I want
The sole importer of pms in Nigeria is NNPC and everyone buy from them, that is the legal reality today. Instead of accusing the government and engaging in non directional demonstration, gather at the national assembly to demonstrate that that law be changed.

thesicilian:
And after "manufacturing" the "free" crude oil he gets from nnpc he gives back the refined products to nnpc for "free", right?

...and where exactly were you told He's getting CRUDE for free ?

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Wallade:
you are not well informed

go to the filling station and buy your 1k with your information