₦airaland Forum

femi4:
If its not affordable, we won't hesitate to import cheaper product

If secret subsidy is not paid, petrol importation from Europe will be history.

Gboss247:
If secret subsidy is not paid, petrol importation from Europe will be history.

Agenda must agend...nothing like subsidy anymore

Saga16:
Which local refinery?

They should all be privatised.

We can't be doing the same thing for 40 years , keep getting the same result.

Whatever works is okay for me but I disagree that WE MUST privatize. There are countries whose state oil companies run their refining business. I tell you, even if we privatize today, so long as that corruption element is not undone, the same people will sell to themselves or their private stooges that lack the capacity to run those companies and then we are back to square one. Like I said, I don’t mind privatization but the issue is deeper than that.

Lookmun:
Whatever works is okay for me but I disagree that WE MUST privatize. There are countries whose state oil companies run their refining business. I tell you, even if we privatize today, so long as that corruption element is not undone, the same people will sell to themselves or their private stooges that lack the capacity to run those companies and then we are back to square one. Like I said, I don’t mind privatization but the issue is deeper than that.

I don't know how old you are, but our refineries haven't worked for close to 40 years.

You want to keep betting on them?

Gboss247:
Long article without any point

Because of that nonentity DNA in you inherited from your past generations, it won’t make meaning to you now.

Have you forgotten you are a dumbàśs boy?

Saga16:
I don't know how old you are, but our refineries haven't worked for close to 40 years.

You want to keep betting on them?

You have to understand that the problem is deeper than the state running the facility. It’s the corruption and the gains of greed that’s the problem. You conveniently ignored the scenario I painted about privatizing and selling to cronies. Will that make it work? No.

There are gains being made from inefficient working of these facilities. If you don’t recognize that, your privatization solution will only a text book solution.

femi4:
Agenda must agend...nothing like subsidy anymore

NNPCL imports petrol from Belgium where the price is €2/litre with an exchange rate of N1,600/€ approximately, the landing cost is over N3,200/litre with under-recovery cost aka secret subsidy covering the loss

Lookmun:
You have to understand that the problem is deeper than the state running the facility. It’s the corruption and the hand of greed that’s the problem. You conveniently ignored the scenario I painted about privatizing and selling to cronies. Will that make it work? No.

There are gains being made from inefficient working of these facilities. If you don’t recognize that, your privatization solution will only a text book solution.

Yes, it will make them work.

From time, it would always be the connected that would purchase such facilities.

The cost of purchase, if considerable, would ensure the buyers have no choice but to make them competitive.

Saga16:
Yes, it will make them work.

From time, it would always be the connected that would purchase such facilities.

The cost of purchase, if considerable, would ensure the buyers have no choice but to make them competitive.

Lol

They would sell it for pennies not just to connected people (which is not bad in itself) but to incompetent people who cannot run these facilities. They’d sell and get kickbacks in return. It’s not enough to want something to work, you need to have the capacity to make them work.

But why would they even do this? Because there is a lucrative market for importation so if you have not purged that system and you think that by selling the facility to private owners, you have solved the problem NNPC refineries, you are in for a big shock.

Lookmun:
Lol

They would sell it for pennies not just to connected people (which is not bad in itself) but to incompetent people who cannot run these facilities. They’d sell and get kickbacks in return. It’s not enough to want something to work, you need to have the capacity to make them work.

But why would they even do this? Because there is a lucrative market for importation so if you have not purged that system and you think that by selling the facility to private owners, you have solved the problem NNPC refineries, you are in for a big shock.

You want to continue with the same strategy?

By all means, be my guest.

People have become grandparents, waiting for them to work.

Nigeria does not believe in protecting local industries. Later you people will be wondering why there is high unemployment. They are even importing fuel of very low quality,exposing citizens to various health hazards.

Saga16:
Nothing wrong with importation, if you can get yours cheaper.

such volume daily is hurting Naira. If the Naira becomes 1200 to a dollar, it translates immediately to cheaper petrol.

NNPC and affiliates are still not truthful with the situation. The crappy money gubbler Warri and PH refineries that is ALWAYS undergoing maintenance for next to nothing output be privatised.

It is their money, no more subsidy. import from anywere it is cheap, if they are still importing it means they are getting it cheaper, na comon sense don't be stupid nigga

AfahaAbia:
The people at nnpc are just finishing our dear country Nigeria. Why give license for importation which is 10 times more expensive than buy from Dangote This country Nigeria...My God!!!!

Saga16:
You want to continue with the same strategy?

By all means, be my guest.

People have become grandparents, waiting for them to work.

My dear brother I know you mean well but the reason why they aren’t working is because there is a huge incentive to keep them that way. If it was merely a case of incompetence, then privatizing it would be a no brainer. But in the case you have people that run the facilities and at the same time are beneficiaries of importation.

These people are enemies of working refineries and that’s why they were the ones that screamed that Dangote was giving us substandard PMS at the onset before the man came on air and showed the world samples of his PMS (it turned out that these rogues were lying) because the product that they condemned has now been adopted by them).

LilX2:
What conscience? Why does he want to monopolise everything? He can’t have it all . For a business to thrive , it needs a good competitior!

That’s how he monopolised cement, see where we are with it . The earlier you understand that this is business for this man the better

The competitors shouldn’t lie to Nigerians to justify the exploitation of innocent citizens

This rebuttal by Dangote is necessary to prove that those NNPC guys have dubious intent

For the past 2weeks I have not purchased fuel from NNPC
They should drink their fuel

How can NNPC be selling 945 while ordinary marketers are selling for less in some instances
Aside MRS, Hayden fuel station sells for 925, while the NNPC is selling for 945

Lookmun:
Whatever works is okay for me but I disagree that WE MUST privatize. There are countries whose state oil companies run their refining business. I tell you, even if we privatize today, so long as that corruption element is not undone, the same people will sell to themselves or their private stooges that lack the capacity to run those companies and then we are back to square one. Like I said, I don’t mind privatization but the issue is deeper than that.

It is called commercialization where government organizations are operated to maximize profits not receiving subsidies in the name of nationalization.

osayuwamwen:
It is their money, no more subsidy. import from anywere it is cheap, if they are still importing it means they are getting it cheaper, na comon sense don't be stupid nigga

Let's talk about common sense
Imagine importing a litre of petrol from Europe is €2/litre or N3,200 with landing cost in Nigeria at N900+/litre with importers demanding under-recovery cost to cover losses.

Gboss247:
It is called commercialization where government organizations are operated to maximize profits not receiving subsidies in the name of nationalization.

Yes you’re correct that these state oil companies run like businesses and so maximize profits. This model makes their operations sustainable in the long term even though they are state companies. And that’s what I’m saying that it’s actually possible to run a facility of that magnitude successfully if the right people with the right motives are there and if there is the right corporate governance there.

But NNPC despite metamorphosing to NNPCL still carries the same baggage of secrecy and lack of accountability. If the fundamental problem of having the people who run the refineries as the same people that benefit from the rentier system of importation, then there would be no solution that will resuscitate the moribund facilities.

Lol nor be this country you they? who is giving who under recovery cost ? No more subsidy oga it has be fully deregulated, let dangote sell below 800 and see if they won't buy from him it is business bro, in business you buy yr products from were it is cheap to make maximum profits simple logic

Gboss247:
Let's talk about common sense
Imagine importing a litre of petrol from Europe is €2/litre or N3,200 with landing cost in Nigeria at N900+/litre with importers demanding under-recovery cost to cover losses.

Na Dangote dey mess up sha. Partner with more private fuel station owners to ensure distribution. There are some areas without MRS. And also drop the price a little further to acquire market share. Why will. I queue for 15 to 30 mins at MRS just to buy 20k fuel.

The time wastage makes no sense. I rather buy at NNPCL with zero queue. This is why he is still having issues with NNPCL.

What do I know sha?

Gboss247:
Just payment of secret subsidy on imported petrol would also be banned.

Government is no longer subsidizing

Paraman:
Government is no longer subsidizing

Government is no longer subsidizing they are paying under-recovery cost to importers, keep defending nonsense!

osayuwamwen:
Lol nor be this country you they? who is giving who under recovery cost ? No more subsidy oga it has be fully deregulated, let dangote sell below 800 and see if they won't buy from him it is business bro, in business you buy yr products from were it is cheap to make maximum profits simple logic

Continue to play blind, I just gave the details of petrol importation Europe to Nigeria and there dozens of articles which NNPCL officials affirming to it.
Enjoy your secret subsidized European petrol!

Gboss247:
Government is no longer subsidizing they are paying under-recovery cost to importers, keep defending nonsense!

Where are you getting this your facts from?

Saga16:
Nothing wrong with importation, if you can get yours cheaper.

Importation isn’t needed anymore because we are wasting scarce forex on it

DrinkWater10:
Importation isn’t needed anymore because we are wasting scarce forex on it

Then, I have no issue with it.

Saga16:
Not possible.

Even if it’s 1 billion. It’s unnecessary and a waste of scarce forex. Patronize local producers and reduce the burden on the dollar

DrinkWater10:
Even if it’s 1 billion. It’s unnecessary and a waste of scarce forex. Patronize local producers and reduce the burden on the dollar

From time to time, government must intervene to prevent;

Monopoly
Scarcity
Social unrest
Security risks.

If you were in government, you would do the same.

adecz:
Dangote should simply bring his petrol ⛽️
down to N500/ litre, make everybody eyes clear.

Is the imported petrol from Malta 500 naira?
After removing dollar subside and unpegging the dollar. Why are we still wasting scarce dollars on importation. BUA is building a refinery in Nigeria so the question about monopoly is wrong.

Paraman:
Where are you getting this your facts from?

You have internet on your device, do your research.

Gboss247:
You have internet on your device, do your research.

You're spreading fable. The FG is not paying a kobo as subsidy

Paraman:
You're spreading fable. The FG is not paying a kobo as subsidy

Imagine importing a litre of petrol from Europe where the cheapest price is €1.7/litre i.e N2,720, then landing cost in Nigeria becomes N900+.
Later, you hear importers demanding for under-recovery from the federal government.