₦airaland Forum

Christ4ever:
Dangote is wrong this. The monopolist wants to weep up sentiments again but this is dead on arrival.

We are not falling for this blackmail. If the inferior fuel has not damaged our engines after years of importation, then it's not about to change now.

Major marketers like Total, MRS, etc. will stop importing the day buying from you becomes less expensive. This is common sense.

How much they sell theirs in the coming days will let us know if both you and NNPC are reaping us.

Your company issues press statements everyday yet you still haven't published how much you sell your fuel till now.

What exactly are you hiding? Why is this too hard for you?

Let them source their fx outside our official sources. The truth is whether the marketers like it or not the game is up. Their taste for importation will only last for months. Their importation has always been a conduit to milk our fx. Why have they not been importing all these years? Why the sudden wake up. Will they create employment like DRL?

adioolayi:
I have said it...importing refined oil products na cash cow..

Politicians, oil importers and International Oil companies are complicit...

They all are still in disbelief that a refinery as huge as that of Dangote can actually work in Nigeria..

Their businesses are about to collapse and they are yet to wake-up..catchihg straws..

Laslas...Nigeria will be liberated.

Actually price will be the determinant

If Dangote fuel becomes cheaper he will take over

But where imported ones is cheaper
It will be very difficult for Dangote to take over the market


Actually the interest of Nigerians is best served
Because cheaper fuel will cause less increase in the price of goods and services

tete7000:
It is not Dangote raising the price, it is the government removing subsidy. Govt can buy from Dangote and sell at subsidized rate. You are mixing things up. All along the price has been high, but for subsidy.

Nooo sir,
Don't return us back to Egypt. Subsidy is gone for good. NNPC sold for N586, some other marketers sold at N850. Dangote came in at N1,000.

We're in a deregulated regime. Let Government not subsidise for any seller. Let buyer be free to patronize whichever seller meets their need (price or quality). Dangote also has a right to demand tax and duty waivers to be able to force his price below Importer's product.

That's the only way consumers can win.

Wonderful news. Allowing importation of petrol is a good sign that maybe Nigeria is finally on the path to full deregulation of the retail and downstream petroleum sector.

Next is the Exploration & Producing segment. NNPC should broken up and privatized. The PH and Warri Refineries need to be sold to separate companies.

This is good news. Finally. Best of all, the commentary and opinion is mostly in favor of free market competition.

Extra note...it's time to open up the cement market to imports. In fact it's time for Nigeria to allow the import and export of all legal goods and services. Combined with a COMPLETE FLOAT of the naira, import & exports will surely thrive and create many more opportunities.

Good Luck to Nigeria.

ElevationD:
Sorry young man, textile mills were not killed by importers, but rather government did it. Have you ever wondered what happened to cotton production? Have you asked what happened with the horrible government policies?

Look at rice today. Borders were shut because of favorable business conditions for locals producers. Today a bag of Nigerian produced rice stands at 100K. Imported rice at 120 and people have their choices. Local producers make it harder when we all know that Nigerian rice should not exceed 20K per bag.

Who is your young man? So who will buy your cotton if all manufacturers have closed down. Nichemtex, Nigeria Textile Mills, Kaduna Textile Mills, Kwara Textile Mills, too long to list all died because of this useless open borders with over five hundred thousand direct jobs along the textile value chain gone. You know nothing Bro.
Price of Rice went up, it is the responsibility of the private sector like you and me to take that advantage, produce, create jobs and make money, if we can't create job, this country is doomed. I have repeatedly said this before now, now the outcomes of poor decisions of yesterday have produced Banditry and violent crimes.

IbeOkehie:
Wonderful news. Allowing importation of petrol is a good sign that maybe Nigeria is finally on the path to full deregulation of the retail and downstream petroleum sector.

Next is the Exploration & Producing segment. NNPC should broken up and privatized. The PH and Warri Refineries need to be sold to separate companies.

This is good news. Finally. Best of all, the commentary and opinion is mostly in favor of free market competition.

Extra note...it's time to open up the cement market to imports. In fact it's time for Nigeria to allow the import and export of all legal goods and services. Combined with a COMPLETE FLOAT of the naira, import & exports will surely thrive and create many more opportunities.

Good Luck to Nigeria.

Free market competition with foreign and imported PMS. I don't get you guys.
Listen to you asking for importation of cement too.
Yet you are here complaining about the value of Naira.

Lifestone:
Who is your young man? So who will buy your cotton if all manufacturers have closed down. Nichemtex, Nigeria Textile Mills, Kaduna Textile Mills, Kwara Textile Mills, too long to list all died because of this useless open borders with over five hundred thousand direct jobs along the textile value chain gone. You know nothing Bro.
Price of Rice went up, it is the responsibility of the private sector like you and me to take that advantage, produce, create jobs and make money, if we can't create job, this country is doomed. I have repeatedly said this before now, now the outcomes of poor decisions of yesterday have produced Banditry and violent crimes.

In whatever you said

Price is still the determinant also adding product quality

I was involved in the textile industry during Jonathan regime

I discovered then that textiles produced in Nigeria by nichem and other local textile manufacturers where
1. Very expensive
2. Low/inferior quality

While the ones imported from china where
1. Cheaper/very cheap
2. Higher/better quality

The main issue is that Nigerian producers have a lot of work to do

They should improve there quality and reduce price
Then the market is there's


I remember a case study I did in college:
Singaporean producers vs multinational corporations producers in Singapore

The multinational corporations in Singapore where collecting the major market share

But Singapore government didn't stop them

Rather they encouraged Singaporean SMEs to compete with the multinational corporations by giving there SMEs
Support both in funding and technical know how

Guess what?

After some couple of years Singaporean SMEs products where at par with the multinational corporations products in quality

Then Singaporean SMEs dropped there price and took over the market share from the multinational corporations

Many of the multinational corporations began to withdraw

This helped Singaporean producers to now go massively into the global market making much earrings for there country and making Singapore one of the best countries to live in the world

Japan, Singapore, South Korea, Taiwan, Malaysia, China even Vietnam all follow same strategy for there countries


The problem we have in Nigeria is that those in authority don't have even basic clew on how to move this nation forward


If the right thing is done
Nigeria will benefit
It's not rocket science

They are just there to make small chicken change money instead of opening the country up to improve and be a global financial power

They don't want improvement
So that they and there cronies will make chicken change
While Nigerians suffer

Open up Nigeria
The citizens are hardworking

Let everyone compete
Competition will bring improvement

Nigeria have the potential to be a $2 trillion dollar economy

But our leaders want us to still be pursuing rats
When we have the potential to be a flying eagle!

Wickedfact:
How much was fuel before Dangote started refining?
How much is it now?
How much is Dangote selling his fuel?

Because Dangote will employ some thousands doesn't mean a Nation of more than 200M should suffer.

Government was subsidizing fuel before DRL produced fuel. Government has said that they will not subsidize again. If they subsidize DRL fuel as they were doing before it will be cheaper than the price before now.

Christ4ever:
Dangote is wrong this. The monopolist wants to weep up sentiments again but this is dead on arrival.

We are not falling for this blackmail. If the inferior fuel has not damaged our engines after years of importation, then it's not about to change now.

Major marketers like Total, MRS, etc. will stop importing the day buying from you becomes less expensive. This is common sense.

How much they sell theirs in the coming days will let us know if both you and NNPC are reaping us.

Your company issues press statements everyday yet you still haven't published how much you sell your fuel till now.

What exactly are you hiding? Why is this too hard for you?

I think Nigerians should really come out and support this importation of PMS since DRL and NNPCL are being discreet with the price of PMS. It's really fishy and I'm very uncomfortable about it and I believe that the only thing that can throw some light on this would be the price at which these imported pms would be sold at.
If it's cheaper or virtually the same price will with what NNPCL are selling theirs then it means that Two parties (DRL & NNPCL) are not being honest and are defrauding Nigerians. And if it's costlier then there would be no need to import it in the first place , the importers would lose because everyone would want to buy from NNPCL instead.
It's a win win situation for the consumers as it is supposed to be.

Lifestone:
Free market competition with foreign and imported PMS. I don't get you guys.
Listen to you asking for importation of cement too.
Yet you are here complaining about the value of Naira.

I think the naira is OVERVALUED. I've been very consistent in that view. The naira has ALWAYS been overvalued and that is what has made Nigeria poor. Unfortunately economic issue require some deep thinking above instinct.

Let's say the naira is completely floated. I don't know what will happen, but let's assume you're right and the demand for dollars increases and naira goes to ₦5,000/$.

One very likely result will be a rise in prices of IMPORTED goods and services, including petrol.

What happens when PRICES are increased? Demand for those imported goods and services.... including petrol, will surely decrease. Nobody will buy imported petrol that is more expensive than locally produced equivalent.

And thus the demand for dollars will drop.

That is how markets work. Allow people to do what is good for them and they will make rational choices that benefit EVERYONE in the long run.

Right now Nigerians pay the HIGHEST CEMENT PRICES in the world. Government is FORCING its citizens to pay more for cement because they want to defend naira. It's so stupid and unjust too.

Think about it a bit. Which import ban has ever helped ordinary Nigerians live a better life? Rice ban? Wheat ban? Tell me just ONE single instance. All it does is raise consumer prices.

There's nothing wrong with importation. It's about FREEDOM. It's not the duty of the Nigerian people to make Dangote richer. 🙄

Lifestone:
Who is your young man? So who will buy your cotton if all manufacturers have closed down. Nichemtex, Nigeria Textile Mills, Kaduna Textile Mills, Kwara Textile Mills, too long to list all died because of this useless open borders with over five hundred thousand direct jobs along the textile value chain gone. You know nothing Bro.
Price of Rice went up, it is the responsibility of the private sector like you and me to take that advantage, produce, create jobs and make money, if we can't create job, this country is doomed. I have repeatedly said this before now, now the outcomes of poor decisions of yesterday have produced Banditry and violent crimes.

All those problems in rice and textile sectors are caused by an overvalued naira.

A strong currency makes importation cheaper. A strong currency promotes consumption over production.

These are classical economic principles that can easily be found on reputable internet sources.

Good Luck to Nigeria.

Lifestone:
This is how we allowed imported textiles to kill the textile industry in Nigeria. Today Millions of jobs have been lost, aside it has also contributed to the collapse of Naira.

I understand where you're coming from, but Nigerians are being taken for granted with the issue of PMS price. DRL are yet to tell us how much they're selling to NNPCL, there's a lack of transparency in all of these and the price of the imported pms will give the people a clue of what's really going on.
Now that there's no subsidy, if the imported PMS are sold at the same or cheaper rate as NNPCL don't you see that there's something very fishy about it?

Newton1045:
Dangote should crash his money to 600, and see everybody rush to him, even neighbouring countries

The problem is that we don't even know how much he's selling the pms. All we know is how much NNPCL has decided to resell to Nigerians since they're the only one authorised to buy pms directly from dangote.
We're being exploited and taken for granted here.
Let them import and set their prices let's even know exactly what's going on. Everything just seems shrouded in secrecy at the moment.

djon78:
In whatever you said

Price is still the determinant also adding product quality

I was involved in the textile industry during Jonathan regime

I discovered then that textiles produced in Nigeria by nichem and other local textile manufacturers where
1. Very expensive
2. Low/inferior quality

While the ones imported from china where
1. Cheaper/very cheap
2. Higher/better quality

The main issue is that Nigerian producers have a lot of work to do

They should improve there quality and reduce price
Then the market is there's


I remember a case study I did in college:
Singaporean producers vs multinational corporations producers in Singapore

The multinational corporations in Singapore where collecting the major market share

But Singapore government didn't stop them

Rather they encouraged Singaporean SMEs to compete with the multinational corporations by giving there SMEs
Support both in funding and technical know how

Guess what?

After some couple of years Singaporean SMEs products where at par with the multinational corporations products in quality

Then Singaporean SMEs dropped there price and took over the market share from the multinational corporations

Many of the multinational corporations began to withdraw

This helped Singaporean producers to now go massively into the global market making much earrings for there country and making Singapore one of the best countries to live in the world

Japan, Singapore, South Korea, Taiwan, Malaysia, China even Vietnam all follow same strategy for there countries


The problem we have in Nigeria is that those in authority don't have even basic clew on how to move this nation forward


If the right thing is done
Nigeria will benefit
It's not rocket science

They are just there to make small chicken change money instead of opening the country up to improve and be a global financial power

They don't want improvement
So that they and there cronies will make chicken change
While Nigerians suffer

Open up Nigeria
The citizens are hardworking

Let everyone compete
Competition will bring improvement

Nigeria have the potential to be a $2 trillion dollar economy

But our leaders want us to still be pursuing rats
When we have the potential to be a flying eagle!

I'm happy your illustration benchmarked competition between actors within Singapore economy. Rather opening Nigeria up for desperate European Refiners who do not wish us well, the responsibility of government is to encourage the Modular Refineries to come on stream and perform.
Even the almighty USA still protect her farmers from serious external competition.
Yes, while I agree that local producers should become more efficient and productive, that does not mean we should not know what's our priority sector.

Lifestone:
Who is your young man? So who will buy your cotton if all manufacturers have closed down. Nichemtex, Nigeria Textile Mills, Kaduna Textile Mills, Kwara Textile Mills, too long to list all died because of this useless open borders with over five hundred thousand direct jobs along the textile value chain gone. You know nothing Bro.
Price of Rice went up, it is the responsibility of the private sector like you and me to take that advantage, produce, create jobs and make money, if we can't create job, this country is doomed. I have repeatedly said this before now, now the outcomes of poor decisions of yesterday have produced Banditry and violent crimes.

Sorry elderly man. What led to massive importation of fabrics by business people?

Stop disgracing yourself please abeg.

Are you blaming importers for open borders? Where were the cotton seeds in Nigeria to purchase by local industries? Are you not aware that even cotton seeds too were imported by textile industries, contributing to their high cost of production, as cotton seeds were insufficient. Whose business was that please? Just like crude oil is government business, are you not aware that cotton is government business? Just like government needs investors in the petroleum industry, are you not aware that investors are needed in the cotton industry to grow and revive the textile mills?

Do you not know that high costs of locally made fabrics hugely contributed to importation of new and used fabrics? Locally made fabrics at the time were more expensive and an opening was created for importers. Under IBB’s government, foreign exchange became a huge matter with the introduction of SFEM and the devaluation of the naira. That government kickstarted the collapse of local industries and Nigerian textile factories could not compete. ARCEE and ASWANI textiles, in Lagos, which were major players in the 70s and 80s, faced unfavorable business conditions and packed up just like the others.

Are you not aware that power was an issue with the industries? Are you not aware of the cost of truck loads of diesel that powered the factories, using massive generators and power plants? Are you not aware that these added to their costs and affected their competitiveness?

What about high taxes? What about insecurity with frequent robbery attacks?

Government has responsibility of protecting local industries. With high tariffs on certain imported goods, local industries can compete, we know. With such low income, how do you expect citizens not to take advantage of lower prices offered to them from competing sellers? If I choose to purchase bad fuel at a low rate, that’s my business and my risk. Whichever way you go is your choice. That’s the beauty of competition.

Sadly people like you think that others want to continue living with such high prices for goods.

IbeOkehie:
I think the naira is OVERVALUED. I've been very consistent in that view. The naira has ALWAYS been overvalued and that is what has made Nigeria poor. Unfortunately economic issue require some deep thinking above instinct.

Let's say the naira is completely floated. I don't know what will happen, but let's assume you're right and the demand for dollars increases and naira goes to ₦5,000/$.

One very likely result will be a rise in prices of IMPORTED goods and services, including petrol.

What happens when PRICES are increased? Demand for those imported goods and services.... including petrol, will surely decrease. Nobody will buy imported petrol that is more expensive than locally produced equivalent.

And thus the demand for dollars will drop.

That is how markets work. Allow people to do what is good for them and they will make rational choices that benefit EVERYONE in the long run.

Right now Nigerians pay the HIGHEST CEMENT PRICES in the world. Government is FORCING its citizens to pay more for cement because they want to defend naira. It's so stupid and unjust too.

Think about it a bit. Which import ban has ever helped ordinary Nigerians live a better life? Rice ban? Wheat ban? Tell me just ONE single instance. All it does is raise consumer prices.

There's nothing wrong with importation. It's about FREEDOM. It's not the duty of the Nigerian people to make Dangote richer. 🙄



All those problems in rice and textile sectors are caused by an overvalued naira.

A strong currency makes importation cheaper. A strong currency promotes consumption over production.

These are classical economic principles that van easily be found on reputable internet sources.

Good Luck to Nigeria.

A very intelligent contribution to this discussion. The point here is can Nigeria economy that is import dependent cope with the associated pressures that your recommendations will come with?
N1700/$ and we already weeping on the street.

ElevationD:
Sorry elderly man. What led to massive importation of fabrics by business people?

Stop disgracing yourself please abeg.

Are you blaming importers for open borders? Where were the cotton seeds in Nigeria to purchase by local industries? Are you not aware that even cotton seeds too were imported by textile industries, contributing to their high cost of production, as cotton seeds were insufficient. Whose business was that please? Just like crude oil is government business, are you not aware that cotton is government business? Just like government needs investors in the petroleum industry, are you not aware that investors are needed in the cotton industry to grow and revive the textile mills?

Do you not know that high costs of locally made fabrics hugely contributed to importation of new and used fabrics? Locally made fabrics at the time were more expensive and an opening was created for importers. Under IBB’s government, foreign exchange became a huge matter with the introduction of SFEM and the devaluation of the naira. That government kickstarted the collapse of local industries and Nigerian textile factories could not compete. ARCEE and ASWANI textiles, in Lagos, which were major players in the 70s and 80s, faced unfavorable business conditions and packed up just like the others.

Are you not aware that power was an issue with the industries? Are you not aware of the cost of truck loads of diesel that powered the factories, using massive generators and power plants? Are you not aware that these added to their costs and affected their competitiveness?

What about high taxes? What about insecurity with frequent robbery attacks?

Government has responsibility of protecting local industries. With high tariffs on certain imported goods, local industries can compete, we know. With such low income, how do you expect citizens not to take advantage of lower prices offered to them from competing sellers? If I choose to purchase bad fuel at a low rate, that’s my business and my risk. Whichever way you go is your choice. That’s the beauty of competition.

Sadly people like you think that others want to continue living with such high prices for goods.

Incidentally you are making my argument that rather than throwing our boders open, government should rather fix those problems that you listed above so local manufacturers can produce cheaper products. Period.
Rather importing fuel, government should fix the barriers to local Refining, fix her broken Refineries and compete. Simple.
Thanks for making my case.

Lifestone:
Incidentally you are making my argument that rather than throwing our boders open, government should rather fix those problems that you listed above so local manufacturers can produce cheaper products. Period.
Rather importing fuel, government should fix the barriers to local Refining, fix her broken Refineries and compete. Simple.
Thanks for making my case.

“ Incidentally you are making my argument that rather than throwing our boders open, government should rather fix those problems that you listed above so local manufacturers can produce cheaper products”.

When government fails to do the needful, then importers must not be blamed for importing goods and offering the suffering citizens better alternatives.

Lifestone:
A very intelligent contribution to this discussion. The point here is can Nigeria economy that is import dependent cope with the associated pressures that your recommendations will come with?
N1700/$ and we already weeping on the street.

What will happen if all industries begin to function optimally, just like they were in the 70s and 80s, before the devaluation by IBB’s government? Are we going to face the “no dollar” story anymore?

KaLuCh:
Bad. I don't care what the story is, Dangote monopolizing the oil sector will be terrible.

Is it not better for Dangote to monopolize the oil industry in Nigeria than for us to be importing substandard fuel that can easily damage damage our vehicles? Ok. What is the reason behind NNPC not working to revive our refineries if they don't want him to monopolize the market? There must be a competition in the market if they don't want Dangote to control it.

tete7000:
So to you it is better to import and kill a local industry that employs thousands of Nigeria?

And to you, importers are not employers of labour?
Do you think that all importers simply bring in one or two containers or cars and then lift their shoulders high?

Do you not know that there are companies that import over 100 containers monthly, providing jobs and paying their taxes?

Lifestone:
A very intelligent contribution to this discussion. The point here is can Nigeria economy that is import dependent cope with the associated pressures that your recommendations will come with?
N1700/$ and we already weeping on the street.

The real issue is to ask WHY the economy is import dependent.

The REASON for import dependence is simple - the naira is too strong. A strong currency makes imported goods cheaper compared to locally produced goods.

The Nigerian people have always demanded that their country maintain a strong currency, which then CAUSES over consumption of imported goods and services.

The SOLUTION is to allow the naira to free-float so it will find its true value. If that value is WEAKER than present prices, then the weaker naira will DISCOURAGE importation and ENCOURAGE local production.

For example, if the naira weakens to ₦7500 per $1, the importation of even Tokunbo cars will decline. Innoson and other domestic car manufacturers and assemblers will gain a competitive advantage and sell more cars. These manufacturers will then start COMPETING against each other and quality will IMPROVE.

This is HOW other economies that Nigerians admire BECAME productive. It's a PROCESS, it takes time. The crucial thing is to get started.

It's also important to remember that President Tinubu contributed greatly to the present crisis by his actions in Jan 2012. Right now any knowledgeable person has to admit he's doing the right thing by abolishing fuel subsidies and devaluing the naira. These are only FIRST STEPS, there's a lot more to be done.

Good Luck to Nigeria.

The solution is for Dangote to go into filling stations. There should be Dangote filling stations just like NNPCL stations. Interested fillingstation can register and operate as Dangote Filling Station

ElevationD:
Government has responsibility of protecting local industries. [b]With high tariffs [/b]on certain imported goods, local industries can compete, we know. With such low income, how do you expect citizens not to take advantage of lower prices offered to them from competing sellers?

The point he was making is that local producers needs to be pushed to compete with the imports instead of being protected with high tarrifs = government support the local producers - R&, tech, training, finance etc. (v different from subsidizing the imports) with future view that IF THEY WATCH QUALITY (of products and management) they'd catch up with imported products and later get international pricing with profits by exporting.

Aprocco:
Nooo sir,
Don't return us back to Egypt. Subsidy is gone for good. NNPC sold for N586, some other marketers sold at N850. Dangote came in at N1,000.

We're in a deregulated regime. Let Government not subsidise for any seller. Let buyer be free to patronize whichever seller meets their need (price or quality). Dangote also has a right to demand tax and duty waivers to be able to force his price below Importer's product.

That's the only way consumers can win.

The Dangote's pms, na Dangote dey sell am to marketers directly?

ElevationD:
And to you, importers are not employers of labour?
Do you think that all importers simply bring in one or two containers or cars and then lift their shoulders high?

Do you not know that there are companies that import over 100 containers monthly, providing jobs and paying their taxes?

So for your mind, importation is better for the economy than production? You must be an importer.

KaLuCh:
Bad. I don't care what the story is, Dangote monopolizing the oil sector will be terrible.

senseless post.

What's happening for almost 40 years in Nigeria as regard fuel scarcity is caused by Dangote being a monopoly too.

tete7000:
So for your mind, importation is better for the economy than production? You must be an importer.

Is that what we are talking about?

By the way, tell us which country in the whole world were they do not import products from other countries.

ElevationD:
Is that what we are talking about?

By the way, tell us which country in the whole world were they do not import products from other countries.

How many countries in the world produce crude oil and import refined products? You people should know what you should be using for comparisons. It is dumb to think it is right for a country to export its crude oil and then go back and import refined products. Very dumb!

tete7000:
How many countries in the world produce crude oil and import refined products? You people should know what you should be using for comparisons. It is dumb to think it is right for a country to export its crude oil and then go back and import refined products. Very dumb!

Oga, tell us which country in the world that does not import from other countries, for the purpose of this discussion.

And by the way, China is the largest importer of petrol, yet with many refineries.

ElevationD:
Oga, tell us which country in the world that does not import from other countries, for the purpose of this discussion.

And by the way, China is the largest importer of petrol, yet with many refineries.

Is China an oil producing nation?