₦airaland Forum

GeneralDae:
They said the refinery actually worked but it seems the start up was premature because it was running at a loss and struggling to reach that capacity where it would be even profitable. Crude oil is costly and so if you are not making profit after injecting it into a refinery, you are better off shutting down the refinery and continuing with repairs. The new management could not allow it keep running at a loss just to prove a point and had to carry out a technical review. The premature start up by Mele Kyari (due to pressure) was said to have done more harm than good

People that did the refineries strong things about 30 years ago said it can never be economically viable again.

The best thing is to sell it as a scrap.

Yet we are still spending billions of dollars every year maintaining the refineries and paying workers salaries even though they are not generating revenue

GeeKudi:
That's not exactly how he puts it. He said the law does not ask for the legality or otherwise of taxable incomes. It simply taxes your income.

Saying below in church is gross

President Bola Tinubu’s tax czar, Taiwo Oyedele, says all Nigerians, including ladies engaging in prostitution popularly called “runs,” are mandated to pay tax per the new tax reforms set to be enforced in January 2026.

In the eyes of the new tax law, Mr Oyedele explained, there are no distinctions between legitimate income and illicit funds.

Mr Oyedele, who chairs the Presidential Committee on Fiscal Policies and Reforms, on Saturday, educated members of the Redeemed Christian Church of God, City of David parish in Lagos, on the reforms of the tax law signed by Mr Tinubu in June.

The administration, according to Mr Oyedele, will levy taxes on all services rendered in exchange for money, a rule he explained applies to sexual transactions.

“If somebody is doing run girls, they go and look for men to sleep with; you know that’s a service,” Mr Oyedele explained to the RCCG congregation. “They will pay tax on it.”

The tax czar further stated that the law itself does not have the capacity to distinguish between income obtained from legitimate means and illegitimate ones; hence, all income is deemed taxable.

“One thing about the tax law is it doesn’t separate whether what you’re doing is legitimate or not; it doesn’t even ask you. It just asks you whether you have an income. Did you get it from rendering a service or providing a good? You pay tax,” Mr Oyedele said.

Raider76:
This is excellent. However these arguments should have been made earlier. Where was the NGX and the investors when the law was made and passed?

Abi?
Which one is campaign after elections?
Although the law seems relatively fair to the stock market.

It's just nuances around the implementation that the exchange is trying to get the tax people to fix.

If I bought SEPLAT in 2019 for 487 and sell in January 2026 for 6000 (say I bought 10,000 units)

Then you want to tax me on 5500 gain
Because you only recognize brokerage fees as my cost.

How about also recognizing loss of purchasing power as a cost.

Cos the the 4.87m I used in 2019 was money for my sedan.

Can that 4.87m buy the same sedan today.

Why not in the spirit of fairness allow me claim my loss of purchasing power as a cost?


By "me" I mean the average market participant o.


The real "me" barely hold stocks for more than a month. Apart from some cases where I get stuck in the stock 😁😁

Agbalowomeri:
Can we start to trade the futures

emmanuelewumi:
Whereas Blue star that was promoted by Dangote and Otedola bought 51% share of the refineries for almost $1 billion in 2007.

But PENGASSAN said national assets were sold at giveaway prices, whereas the remaining 49% would be sold to Nigerians so they we can also buy at that giveaway price.

They succeeded in bullying Yar Adua to reverse the sale,

I don't think Yar Adua was bullied by anyone. He was more of a welfarist who believed that state assets should not be sold.

emmanuelewumi:
People that did the refineries strong things about 30 years ago said it can never be economically viable again.

The best thing is to sell it as a scrap.

Yet we are still spending billions of dollars every year maintaining the refineries and paying workers salaries even though they are not generating revenue

And PENGASSAN workers are still there collecting salaries and paying dues to PENGASSAN on non functional refineries 😊😆.
Who do us this thing? 😊.

Are you sure about the bolded?

Anyway, I don't think he will ban them because conservatively 70% of these unionists/workers are linked to the Niger Delta and he would not want them to 'return to the creeks'...

pluto09:
Tinubu does not have power to ban the union.
It is a very powerful union and they are ready to fight dirty knowing fully well they have nothing to loose. Even abacha as a military head of state found them difficult to handle.
The earlier the issues are resolved the better for the country, hopefully the president will step in and bring a solution.

emmanuelewumi:
Whereas Blue star that was promoted by Dangote and Otedola bought 51% share of the refineries for almost $1 billion in 2007.

But PENGASSAN said national assets were sold at giveaway prices, whereas the remaining 49% would be sold to Nigerians so they we can also buy at that giveaway price.

They succeeded in bullying Yar Adua to reverse the sale,

Yes sir. It's the billions of scarce FX wasted in the TAM that's even my own pain.


FX that was so scarce they had to pledge the country's future earnings.

Those decisions makers were really going through a lot.


How much were they possibly hoping to make as returns from the refineries to justify such sub optimal decisions.

I pray Alhaji would sue the government and the unions $500m for every day that the refinery is disrupted. They will know the difference between sabotaging government refineries and private ones.

emmanuelewumi:
He has the power when they sabotage the economy or become a terrorist.

Stopping gas supply to Dangote Refinery, when NNPC and Dangote Refinery signed a 10 year contract for the supply of 100 million metric feet on a daily basis. This is a breach of a legally binding contract that can cost NNPC a fortune if challenged in the court

KarlTom:
This response reeks of bitterness and envy.
If he decides to do the bolded, you will be the one holding the speaker, shouting monopoly...

Lolss

You think it’s craftsmen and artisans that operates in the oil and Gas sector?
Are the skill required picked on the shelf?

emmanuelewumi:
That is why the president and Minister of Petroleum is quiet on it

Absolute sir.

It’s a 2 sided thing… Bothe have their valid side of story

pluto09:
I don't think Yar Adua was bullied by anyone. He was more of a welfarist who believed that state assets should not be sold.

In other words, if he wasn't already leaning towards the idea, he wouldn't have succumbed.

But there was still pressure na, just that the pressure alone wasn't the whole reason.

So we're all saying the same thing 😁😁

KarlTom:
Are you sure about the bolded?

Anyway, I don't think he will ban them because conservatively 70% of these unionists/workers are linked to the Niger Delta and he would not want them to 'return to the creeks'...

OBJ tried it with NLC when their problem was too much but he was not successful.
Those unions are creation of the law.
The best he can do is to promote dissent among members and encourage them to register another break away union just like we have in TUC from NLC

GeneralDae:
Who do us this thing? 😊.

PENGASSAN! duhh.

Agbalowomeri:
You think what goes on in a government refinery would be permitted in a private business? These people think Dangote refinery is a government entity

Oil and Gas working conditions is a global matter due to the everyday hazards. If we are to standardize the monetary part, Nigeria will be one of the least paid.

I have seen a 40Tons of equipment fall from about 50ft just in a normal working day oo. I’ve seen someone finger cut just by trying to place a wood to support something so minor.

There needs to be a table discussion. Not everything should be sorted with money.

GeeKudi:
That's not exactly how he puts it. He said the law does not ask for the legality or otherwise of taxable incomes. It simply taxes your income.

That's exactly how he says it. It was inappropriate for him he said that. He said the law doesn't care if the income is legal or not

awesomeJ:
In other words, if he wasn't already leaning towards the idea, he wouldn't have succumbed.

But there was still pressure na, just that the pressure alone wasn't the whole reason.

So we're all saying the same thing 😁😁

He was a president that wanted to be popular with the populace.
Selling those refineries was not a popular decision albeit the right one.
Majority believed OBJ took that decision to favour his friends.

GeneralDae:
So how do you expect me as a Nigerian to be in solidarity with your course when you don’t even care about me?
The legislators would have to regulate these unions and strict penalties have to be enforced. Workers belonging to these unions who shut down sensitive operations for every dispute (even dispute with a private company for that matter) would have to be fined or replaced by non union workers. Unions shouldn’t have such powers. It’s not done anywhere.

Lols. I understand your plight… This Union in a way check/balance the foreign investors. Workers were literally treated a slaves.
It’s sad it’s our own person that wants to go this route.

Trust me, many IOcs have been on this path and they all knows how it turns out. I’m sure many would have called Dangote on this .

Let’s see what the resolution will be

mikeapollo:
And the company also has the right to replace workers who withdraw their services!
Let's wait and see who would lose at the end of the day in this era where unemployment is high and people are desperate for jobs.
What did the unions do or achieve with the NNPC refineries after they resisted and rejected the proposed sale to private investors by Yardua's govt?

This means you will have a plumber doing a piping operation and a tailor sowing PPE for Nigerians.
As regards NNPC, that’s not the function of the union. Hold your government accountable to that. Let’s not digress

handsomebolanle:
Lolss

You think it’s craftsmen and artisans that operates in the oil and Gas sector?
Are the skill required picked on the shelf?

My brother!!!
I'm this Nigeria that people were applying with PhDs to be truck drivers??
As far back as 2012 or so? When the economy wasn't even this hard?

Truth is: the country has way more talent than opportunities, let's not kid ourselves.


Even first class is no longer a guarantee of getting a job.

Plus from what I know , the man has even been training human capital at his own expense since at least 2019.


He doesn't need the pengassan talent, believe me.


If e sure for pengassan, let them threaten that they won't supply him workers na, instead of this rascality they're displaying.


My brother, masters holders dey work as bank tellers o.

Abi nor be the same Fourier transform all of us learn.


You guys shouldn't think more highly of yourself than you ought to.

So called skills with which Una no fit come up with ingenious fixes to make 3 refineries work, despite collecting hefty salaries.

After many years of collecting salaries at a non functional refinery, what else would those employees be doing at work e won pass draft ?

Play draft morning till evening and you expect me to believe they haven't forgotten all they learnt in fluid mechanics

My brother!!!!

TAM has been ongoing for ages without any tangible result

It's basically for servicing (or maintaining) the pockets of a select few.

Little wonder most GMDs are being probed...

awesomeJ:
Yes sir. It's the billions of scarce FX wasted in the TAM that's even my own pain.


FX that was so scarce they had to pledge the country's future earnings.

Those decisions makers were really going through a lot.


How much were they possibly hoping to make as returns from the refineries to justify such sub optimal decisions.

Aradel now 615. All you waiting at 400 make Una dey wait

I have worked there so spare me the lecture...

Now that Aliko has fired them, will operations cease?

handsomebolanle:
Lolss

You think it’s craftsmen and artisans that operates in the oil and Gas sector?
Are the skill required picked on the shelf?

handsomebolanle:
Oil and Gas working conditions is a global matter due to the everyday hazards. If we are to standardize the monetary part, Nigeria will be one of the least paid.

I have seen a 40Tons of equipment fall from about 50ft just in a normal working day oo. I’ve seen someone finger cut just by trying to place a wood to support something so minor.

There needs to be a table discussion. Not everything should be sorted with money.

First: the risk you described is more associated with oil production not so much refining.

Second, aboki wen dey dig well with slippery mud faces more risks yet they pay you guys in one hour more than the aboki will make in an entire year. And they put the best safety measures in place for you, whereas aboki is mostly always on his own.

So don't make it sound like you bear the entire world risk on your shoulders.

You guys are already about the most well compensated worker group in the whole country.

All we're asking is that you don't sabotage the economy all in the name of forcing your union on every business. ASUU doesn't do it. NMA doesn't, so why you??

handsomebolanle:
This means you will have a plumber doing a piping operation and a tailor sowing PPE for Nigerians.
As regards NNPC, that’s not the function of the union. Hold your government accountable to that. Let’s not digress

Is it only in Nigeria that we have oil and gas workers/experts?
Dangote can easily bring in workers from elsewhere to replace the workers that withdraw their services, under the the guidance of the few experts at post. With time, they will become experts.
Please do not over stretch this issue. If Dangote really means to sack the workers, he can do it effectively and the affected workers will be the ones to lose and regret. There are many unemployed former PENGASSAN members, foreigners that would easily take up offers to work at Dangote refinery e.g. Filipinos, Indians etc.

handsomebolanle:
Lols. I understand your plight… This Union in a way check/balance the foreign investors. Workers were literally treated a slaves.
It’s sad it’s our own person that wants to go this route.

Trust me, many IOcs have been on this path and they all knows how it turns out. I’m sure many would have called Dangote on this .

Let’s see what the resolution will be

I am a business owner...
Sincerely..no business owner will allow a third party to dictate the affairs of his company...
IOCs are not locals.. so the terrain is a little bit difficult for them...

Streetinvestor2:
U are a joker if u think the CGT will affect long time investors like me.They will never see shishi from me till they leave.They will collect from jijo people like u.They can only create bearish market which I will use to add to my winning stocks. Then I will wait for them to get out by 2027 for responsible government to come.
I was only concerned for the market but not that it will cause me any loss. U make loss only when u sell as long as my fundamental sound companies don't close shop.I will be collecting my dividend. I repeat they will never see shishi as CGT from me

DON'T WORRY BODY GO SOON TELL YOU


https://nairametrics.com/2025/09/29/why-25-cgt-for-share-sale-is-self-inflicted-wound-for-nigeria/


Why 25% CGT for share sale is self-inflicted wound for Nigeria.


The government has decided to test another experiment on our already fragile capital markets.

This time, it comes in the form of a 25 per cent capital gains tax on listed equities, charged if the proceeds are reinvested outside the stock market into fixed income or other non-equity assets.

On paper, it looks like a clever nudge; actually, it is not. Sell your shares and take the money into bonds? Fine, but you must hand over a quarter of your gain to the taxman. Keep the money in equities? You are spared. The theory is that this will redirect capital back into companies, create jobs and stimulate growth.

But the truth is that elegant theories don’t move markets. Investors do. And when you look at this proposal through the eyes of those who actually provide the capital, it starts to look less like smart policy and more like another wasted bullet.

So what exactly are we dealing with?
The new rule would slap a 25 per cent levy on your gain if you sell shares and move the money into non-equity assets. The only way to avoid it is to reinvest in another Nigerian company, whether listed or not. Inflation doesn’t count in the government’s calculation.


If you bought shares ten years ago and the naira has since eroded half your real return, too bad. The cost basis is your original purchase price, not the reality of what your money is worth today.

Retail investors might shrug because most are exempt. Individuals only cross the line if their annual proceeds are above 150 million naira. Pension funds and other large pools of capital are also exempt.

Which leaves us with the obvious question: who exactly is this law supposed to catch?
The uncomfortable answer is that it is targeting a small slice of local, private investors who trade actively but don’t have the same tax shelters as institutions. In other words, the group most sensitive to market conditions, the very group you would imagine the government should encourage, not penalise.


Foreign investors and the big question mark
Now comes the elephant in the room. Will foreign portfolio investors be forced to pay this tax? If they are, then Nigeria just made itself even less attractive compared to every other frontier market out there. Imagine a foreign investor weighing where to park capital. On one side, you have Kenya, which exempts listed equities from capital gains tax altogether. On the other hand, Nigeria, where the cost of entering is already high, and the cost of exiting now comes with a 25 per cent haircut. Why would you choose Nigeria?

And if the rule doesn’t apply to foreigners, then what exactly is the point of the exercise? Punish your own local investors while letting external players walk free? That hardly sounds like sound economic policy.

The double taxation implication – FPIs pay CGT in their countries. For example, you will pay 21 per cent in the US after paying 25 per cent in Nigeria – this is quite laughable.

Kenya shows a different playbook because South Africa is not our mate

Kenya isn’t perfect, but on this one, it is far more pragmatic. Capital gains are generally taxed at 15 per cent there, but gains on shares listed on the Nairobi Securities Exchange are exempt. Investors know they can enter and exit without penalty. That creates liquidity, builds confidence and keeps capital flowing.

Nigeria, on the other hand, is busy erecting a toll gate at the exit ramp. And the one thing investors value most is the assurance that they can always leave when they want to. Remove that, and you don’t create loyalty, you create avoidance.

The risks we are inviting
The likely consequences of this proposal are straightforward. Foreign participation will fall. Liquidity will dry up. Bid-ask spreads will widen. Valuations will compress. Long-term holders will be punished because inflation isn’t recognised in the cost base. And the overall perception of Nigeria as a place to invest will slide even further.

This is not about textbook economics. This is about psychology. The confidence that you can invest today and exit tomorrow without arbitrary punishment is the bedrock of any market. Take that away, and you guarantee capital flight.

Nigeria is not New York, London or Shanghai. We are not yet a deep capital market where investors shrug off friction. Every little barrier matters here. Currency swings, political risk, governance uncertainty ; these already weigh on decisions. Adding a punitive exit tax is a self-inflicted wound.

When you shoot yourself in the foot, you don’t get sympathy from investors. You get avoidance. You get money going elsewhere. And you get another wasted bullet in the long list of policies that sounded clever in the textbook but collapsed in the real world.

awesomeJ:
My brother!!!
I'm this Nigeria that people were applying with PhDs to be truck drivers??
As far back as 2012 or so? When the economy wasn't even this hard?


[/b]
My brother!!!!

Sorry boss, This is laughable sir.
Academic excercise is not same as skill set required on many jobs.
Like you said that Dangote embark on training .. why did he? You would have thought it’s better to train them on the job but that’s not the case.
There is some required skill level on this job.
It’s even speculated he employed foreigners for some jobs even for his own refinery.
He can get and pay the required skill set for his refinery but he can’t get for the whole industry even if he can afford it.

Let’s admit the truth: all this gra-gra from PENGASSAN is mainly about what they stand to gain financially. What about all those Indian and South Korean companies in the oil and gas industry that mistreat and sack Nigerians at will—what have they done about that? The NLC leadership will lose credibility if they decide to embark on this senseless campaign.

Aradel

100k unit block at 615 confirmed