₦airaland Forum

professorPABX:
Thanks for the information that SUBSIDY still happens, thanks for that information. I know PEF have been abolished but I was confused when DANGOTE was mentioning falsification of figures about PMS consumption repeatedly. He said the pms importers and Ally in government have been inflating figures. I have been wondering about what concerns Government, Nigerians and DANGOTE with figures since no payment is based on the figures and no subsidy on FOREX for essential commodities and no CRUDE OIL Swapping Deals again.

During JONATHAN Government when crude oil was above $110 per barrel. 1. Subsidy was been paid 2. CRUDE OIL Swapping Deals was on. My personal friend worked with a popular downstream oil company at Lekki Phase 1 as Bunkering Superintendent. Wallahi, it was deal galore. Everyday at that company was like CHRISTMAS. It seems the external Caterers that supply Lunch foods always prepared for visitors. The environment was always in festive mood with every staff happy celebrating one thing or the other. I always took time to visit my friend whenever I visit Lekki provided he is not at Apapa Jetty.

Few months after BUHARI came, I visited, the place had changed. It was like a mourning period. The deals have stopped and their company listed among companies being investigated by EFCC. They complained that companies with very strong interest in Buhari Government are still enjoying the subsidy and other deals. They said they are being victimized because their Chairman's wife is Mama Peace Jonathan personal friend.

Yea. It's always like that
..Every government in power has kitchen cabinet and those they favor. The current government granted some licence to import to some of their cronies.. even when it was clear that we have a local refinery that can meet local need. Now Dangote is forced to export its petrol in order to sell, while some groups backed by the government take our scarce foreign exchange to import.. same people would submit the import bill to the government and claim they sell below the cost price to meet set market price.. Government would tell you no Subsidy provision in the budget but they would go behind and pay those people and call it Under-Recovery. The malfeasance and corruption in that sector is scary..
.
Two things make importation attractive, the prospect of claiming subsidy or Under-Recovery claims like i mentioned earlier and the fact that the fuel being imported are mostly blended cheap fuel and these same guys own some of these blended plants in other parts of the world. Most countries won't take this kind of fuel but Nigeria where anything goes has a ready market due to poor or easily compromised regulatory authorities.. these are the monsters and saboteurs Dangote fight on a daily.

Kelklein:
Yea. It's always like that
..Every government in power has kitchen cabinet and those they favor. The current government granted some licence to import to some of their cronies.. even when it was clear that we have a local refinery that can meet local need. Now Dangote is forced to export its petrol in order to sell, while some groups backed by the government take our scarce foreign exchange to import.. same people would submit the import bill to the government and claim they sell below the cost price to meet set market price.. Government would tell you no Subsidy provision in the budget but they would go behind and pay those people and call it Under-Recovery. The malfeasance and corruption in that sector is scary..
.
Two things make importation, the subsidy or Under-Recovery claims like i mentioned earlier and the fact that the fuel being imported are mostly blended cheap fuel and these same guys own some of these blended plants in other parts of the world. Most countries won't take this kind of fuel but Nigeria where anything goes has a ready market due to poor or easily compromised regulatory authorities.. these are the monsters and saboteurs Dangote fight on a daily.

Thanks for this exposition. I never knew this is what is happening.

You are the calibre of people needed on Social media. People that know about insiders deal. People that know the business of power. When DANGOTE cry we never knew what is happening. From my Regimental experience about deals at Ports and Jetties, those import license granted by government, the importers will only import about 70% of the value and collect 100% subsidy. The imported fuel would be of lower quality to maximize profit.

From my earlier suggestions in the morning, Government should ban Importation of PMS but give 5 months notice. You can read my first contribution on this subject matter.

Thanks

Silentgroper:
.

I do not get it . Doesn't he already produces Petrol .. instead of distributing to marketers who chooses to import due to whatever greediness is wrong with them ..


He creates multiple outlets and sell at his own retail price .. doesn't he earn triple the amount back and then pays for his crude or whatever.

If he goes this way, I'm pretty sure it will end the drama with this marketers and probably bring them to their feet that's if they don't try to sabotage the move ...

Let me explain to you.
Dangote needs to pay $55million daily for crude oil. He doesn’t have this liquidity. He can only rely on Marketers willing to pay him in Advance for the Petrol so he can pay for crude oil.
If Dangote is to own a filling station, it will take days to finish a tanker, his money will be stuck in filling stations. It’s all about liquidity ratio and he doesn’t have the liquidity.
Currently, if a marketer pays N5 billion to Dangote for PMS, he will directly pay for crude, thereby using your money to purchase crude and refine for you.
If he will own a filling station, he will have to use his own money to purchase for you, which currently doesn’t have.

Urgent1Million:
Thank you for acknowledging the bolded.
Some people are letting their hatred for Tinubu as a person cloud their judgement of Tinubu's actions as the president of the country.
Dangote has been playing a game of emotion and victimization for some time now.
He wants to convince or even blackmail the president using the "Nigeria first" policy to make Tinubu push for a suspension of important of fuel.
Then Dangote will become a monopoly, create artificial scarcity and jack up prices.
Unfortunately for him, Tinubu understands the game in the petroleum sector very well and will never fall for that plan.
Let Dangote and other local refiners compete for the share of the market with other marketers.
Market forces will continue to drive prices and Nigeria will be better for it.

Does it make sense to you that Nigeria should be importing refined petroleum products when we have crude oil?
What a reasonable and sensible govt would do is to make crude available to Dangote refinery at a specific naira price and demand that Dangote makes specific volume of the product available to Nigerians at an agreed fair price , in order to reduce cost of energy, transportation, rejuvenate the economy, create more jobs and strengthen the naira. But here we are, supporting wrong thing.
No country ever develops through ''market forces''. The govt has to take deliberate steps to empower local industries. China and Russia did it. Today, Donald Trump is protecting American businesses and imposing trade tariffs, which is clearly against market forces, but a Nigerian here is pretending to know and understand market forces more than America

IbeOkehie,

Comments in this thread corroborates your stance that subsidy on petrol still continues.

You know Nigeria too well. How come?

FreeStuffsNG:
You're uncouth and absolutely ignorant not to know that IPMAN is the promoter of NIPCO Plc.
I will not indulge you with the free education but immediately report you to the mods for your cyberstalking and malfeasance.

is Kukutente23 a government worker?

u sha dey find means to use grammar way pass ur pay grade.