₦airaland Forum

Very welcome news.. as much as I admire and respect Dangote for the tremendous job he’s done with his Refinery, he should understand it’s a free market- other players can import and sell their products as well.. I don’t support monopoly at all..

I’m with the NNPC on this!

YouandiAllofus:
NNPC at it again... No be dangote say make una mismanage una refineries.

The NNPC should pick up the challenge of revitalizing it's refineries and sell refined products at a cheaper price. This is the best way to bring down the cost of refined products alongside selling crude products to refineries at a reasonably fair price too.

Oga let them import, it will help checkmate Dangote fuel price. Immediately fuel importation, we have seen how fuel price has drastically gone up.

ogascomax:
Dangote is a criminal and he won't hold us hostage with fuel like in cements.
Is agenda of wants to be the only one controlling the fuel industry shall fail.

We have 5 cement company in. Nigeria how is dangote holding you olodo ?

Dreal1247:
If importers are hindered from importing petroleum into this country, Dangote will make people to buy the products at #2,000.00 per liter. Even if they are eventually allowed to import the products, he will frustrate them with price. Let more people build refineries in Nigeria for a healthy competition.

Exactly
Fuel importation should be allowed to continue to create price balance, else we may end up buying fuel at 3k sooner than we think.

Meerahbel:
NNPC’s response reflects a deeper fear within Nigeria’s oil sector — that allowing one refinery to dominate fuel supply could create a monopoly with too much influence over pricing and distribution.

According to the company, Dangote refinery products are already sold at prices that fluctuate based on market conditions and commercial interests. NNPC argues that if imports are restricted and only one major supplier controls the market, Nigerians could face higher fuel prices, supply disruptions, and reduced competition.

The national oil company also insists that refining petrol alone is not enough to guarantee national energy security. It says nationwide fuel supply depends on storage, transportation, logistics, strategic reserves, and distribution networks across the country. In its view, relying heavily on a single refinery could become risky if there is any operational shutdown or production issue.

On the other hand, Dangote refinery believes continued fuel importation undermines local refining investments and discourages domestic production despite billions invested in Nigeria. The refinery argues that it now has the capacity to meet a significant portion of local demand and deserves stronger regulatory protection.

Oil marketers and retail outlet owners appear to side with NNPC on the issue of competition. They argue that keeping multiple supply channels open helps prevent price manipulation, scarcity, and market dominance by any single player.

At the heart of the dispute is a larger national debate:
Should Nigeria protect local refining by limiting imports, or should it maintain an open market with multiple suppliers to encourage competition and stabilize prices?

The court’s decision could shape the future structure of Nigeria’s downstream petroleum sector for years to come.

Is it not a stupid and shameless thing for NNPC to be pushing for importation of refined products when they have 4 refineries? Does it mean they deliberately wasted THE money spent on repairing the refineries whilst they actually preferred imports to domestic refining of crude oil?

nairalanda1:
Austria ..fuel costs 1.79-1.84 EUROS...which is about N2861 to N2940 euros.

Better tell us another story.

How much is their minimum wage compared to Nigeria?

Three days wages can fill up your tank… can you say same in Nigeria?

Why is dangote stoping them from.importing? Monopoly won't pay us.

Dreal1247:
If importers are hindered from importing petroleum into this country, Dangote will make people to buy the products at #2,000.00 per liter. Even if they are eventually allowed to import the products, he will frustrate them with price. Let more people build refineries in Nigeria for a healthy competition.

Well, your last statement is where the problem lies. No one wants to take the risk Dangote took, so will it be fair for anyone to deny him the benefit of reaping the reward of risk taking.

nairalanda1:
If you Nigerians had supported total subsidy removal in 2012, or even long before 2006, by now we would have had more refineries competing with dangote.

Who will build the refinery?

This guy has shown that na exploiter him be for Nigerians. Without monopoly he for no be this rich. Na the corruption in the system that made him rich. The useless deal he did Buhari to get the dollars to build personal refinery never do am.

dre11:
https://punchng.com/dangote-faces-price-war-as-nnpc-backs-fuel-imports/

fashrola:
How much is their minimum wage compared to Nigeria?

Three days wages can fill up your tank… can you say same in Nigeria?

It would cost 23-25 trillion naira to subsidise fuel to N200 per liter today, if not more.

Our budget is 54 trillion naira.

Since the government has not budgeted for subsidy this year, that means that money would have to be taken from other sectors of the budget to pay for the subsidy

Which means that you probably won't get paid your minimum wage at all at all.

Also, many people in AUstria do not use their cars like we use them , they use public transport, and they use their cars sparingly. And for the public transport, they pay excessively hefty taxes...that would make tinubu tax look like chicken feed.

Make we face reality, abeg.

ogascomax:
Dangote is a criminal and he won't hold us hostage with fuel like in cements.
Is agenda of wants to be the only one controlling the fuel industry shall fail.

When Dangote was building this refinery, everyone was screaming fuel will go down to 500 naira immediately the refinery kick off, but today fuel is already selling for 1500. I just hope nnpc is able to fight this, if there is no competition in the market, Nigerians will buy fuel for 5k sooner than they think. Monopoly is very bad for consumers.

It is NNPC that encouraged Dangote to monopolize the price of fuel in Nigeria. Yes. If Nigeria refineries are working, there is no way he can monopolize it.

NNPC is now fighting because Dangote has blocked their crude way of circumventing funds from the government and taking bribes from importers.

This l see.
.

Bluearrow:
Who will build the refinery?

BY 2012 , there were over 20 licences issued for refineries. The only thing stopping them from commencing constrictuon was subsidy.

Subsidy means price controls. Back then, fuel would have to cost about N140 and above to make any refinery profitable. But since government was setting prices at N65 , later raised to N97 and then N87, any bank loaning money for an investor, or any investor putting money into a refinery would have lost a lot of money, so banks no go give loans.

Dangote was able to build a refinery back then because he has other lucrative businesses. Sugar, cement, food, etc. Assuming he could not pay back the loans he took to build the refinery (he spent 19 bn dollars, eventually, 3 billion came from his pocket, 2.9 billion came from the government, the rest came from various banks, local and international), all his lenders need to do is to go to AMCON who will take over his other businesses, and use it to pay them back their money.

That is why subsidy had to go back then, but most Nigerians refused, and tinubu and buhari were busy encouraging them to refuse. See where we are.

Same issue with NNPC, government was finding it difficult to fund refirneries, and subsidy by 1993, and instead of ending subsidy, they took the money used for funding refineries and used it to fund subsides. Result is the scrap we have as refineries now...and every government since 1993 is responsible.

nairalanda1:
Austria ..fuel costs 1.79-1.84 EUROS...which is about N2861 to N2940 euros.

Better tell us another story.

Before comparing fuel cost to Austria, what is the minimum wage in Austria?

dre11:
https://punchng.com/dangote-faces-price-war-as-nnpc-backs-fuel-imports/

Nnpc is enemy of progress. The Nigeria scam refineries should all be sold. Na scam promax☹️

nairalanda1:
BY 2012 , there were over 20 licences issued for refineries. The only thing stopping them from commencing constrictuon was subsidy.

Subsidy means price controls. Back then, fuel would have to cost about N140 and above to make any refinery profitable. But since government was setting prices at N65 , later raised to N97 and then N87, any bank loaning money for an investor, or any investor putting money into a refinery would have lost a lot of money, so banks no go give loans.

Dangote was able to build a refinery back then because he has other lucrative businesses. Sugar, cement, food, etc. Assuming he could not pay back the loans he took to build the refinery (he spent 19 bn dollars, eventually, 3 billion came from his pocket, 2.9 billion came from the government, the rest came from various banks, local and international), all his lenders need to do is to go to AMCON who will take over his other businesses, and use it to pay them back their money.

That is why subsidy had to go back then, but most Nigerians refused, and tinubu and buhari were busy encouraging them to refuse. See where we are.

Same issue with NNPC, government was finding it difficult to fund refirneries, and subsidy by 1993, and instead of ending subsidy, they took the money used for funding refineries and used it to fund subsides. Result is the scrap we have as refineries now...and every government since 1993 is responsible.

You ended up writing long note for nothing, I said who will build the refinery? Since the subsidy was removed how many individuals have started building apart from Dangote? It means he was the only one that could have also built back then. You think building refinery is building fuel station? Maybe u think the likes of Elemelu & Adenuga can build refinery? Anyone that can build a refinery must be as rich as Dangote or richer than Dangote. Name that billionaire that is richer than Dangote in this country

And NNPC thinks the solution is to import fuel rather than build functional refineries?

Lazy tuarts

I support competition

dre11:
https://punchng.com/dangote-faces-price-war-as-nnpc-backs-fuel-imports/

ogascomax:
Let me remind you that Russian fuel and Saudi Arabia is less than a dollar.

1. Saudi uses about 60 billion dollars, which is way above our budget of 40 billion dollars for this year, to keep fuel cheap. Unless you want us to take our entire budget, borrow 20-30 billion on top, and use it to fund subsidy for fuel so that we can all have cheap fuel, while salaries go unpaid and projects go unfunded, and everything grinds to a halt, but hey, you got cheap fuel that you cannot pay for now...lol......you better not bring Saudi here.

If Nigeria wanted to be like Saudi, we would have to earn something like 7-10 times what we earn from oil to be able to fund such subsides on fuel. SInce such money does not come overnight, it is either you want us to borrow the money...which would create the largest ever debt in the history of mankind, or you just accept we cannot fund oil subsides for now


2. Russia? Russia pays 22 billion dollars per annum to keep subsides on fuel. And it is not like that money is easy to come by.

And their fuel price per liter are between...466-1000 naira. Yes, it is low, but it costs a lot of money...which Russia can afford because it runs a diversifed economy...that produces industrial goods for export. Does Nigeria do that?

Nigeria relies on 1.8 million bpd revenue for crude oil. Our budget this year was about 54 trillion naira, to subsidise fuel to N200 per liter would require 22-24 trillion naira. Like I said, since we have no budget for subsidy...having a budget now, would mean taking money from other sectors of the budget, including money we borrowed...to fund the subsidy budget.

You know that means we go borrow more, worsening our debt, sha?

We are not RUssia or Saudi..we are Nigeria, a nation that since independence has not diversifed our economy and has a very poor tax uptake. And sadly tinubu dey continue am up till now

So, please forget subsidy, unless you want your debt to be around 500 trillion naira or more in two years time.

Bluearrow:
You ended up writing long note for nothing, I said who will build the refinery? Since the subsidy was removed how many individuals have started building apart from Dangote? It means he was the only one that could have also built back then. You think building refinery is building fuel station? Maybe u think the likes of Elemelu & Adenuga can build refinery? Anyone that can build a refinery must be as rich as Dangote or richer than Dangote. Name that billionaire that is richer than Dangote in this country

You do not want to see what you do not want to see

Adieu.

HEALTHY COMPETITION, AS IN THIS INSTANCE, IS DESIRED IN ANY PROGRESSIVE ECONOMY. IT ENCOURAGES QUALITY AND PRICE COMPETITIVENESS, AND PROVIDES THE CONSUMERS WITH ALTERNATIVES.

DANGOTE SHOULD CONCENTRATE ON OPTIMIZING HIS FACTORY AND WORKFORCE FOR ENHANCED PRODUCT SUPERIORITY AND COST-EFFICIENCY, RATHER THAN FIGHTING FOR LOCAL INDUSTRY PROTECTION, AND BY EXTENSION, A MONOPOLY OF THE INDUSTRY BY HIM.

LOCAL PROTECTIONISM DISCOURAGES RESEARCH, DEVELOPMENT, AND INNOVATION, WHICH SHOULD BE THE DRIVING FORCES OF ANY PROFITABLE AND SUSTAINABLE INDUSTRY. KUDOS TO NNPC ON THIS ISSUE.

DrWokili:
HEALTHY COMPETITION, AS IN THIS INSTANCE, IS DESIRED IN ANY PROGRESSIVE ECONOMY. IT ENCOURAGES QUALITY AND PRICE COMPETITIVENESS, AND PROVIDES THE CONSUMERS WITH ALTERNATIVES.

DANGOTE SHOULD CONCENTRATE ON OPTIMIZING HIS FACTORY AND WORKFORCE FOR ENHANCED PRODUCT SUPERIORITY AND COST-EFFICIENCY, RATHER THAN FIGHTING FOR LOCAL INDUSTRY PROTECTION, AND BY EXTENSION, A MONOPOLY OF THE INDUSTRY BY HIM.

LOCAL PROTECTIONISM DISCOURAGES RESEARCH, DEVELOPMENT, AND INNOVATION, WHICH SHOULD BE THE DRIVING FORCES OF ANY PROFITABLE AND SUSTAINABLE INDUSTRY. KUDOS TO NNPC ON THIS ISSUE.

Well, most nigerians opposed subsidy removal, which essentially made it difficult for dangote to have healthy competition

Last chance was in 2012. Had subsidy gone totally then, there would have been more people ready to build refineries, and more investors ready to put money in them..meaning we could have had refineries by the dozen by now. But everyone said no then.

Now subsidy has gone since 2023, and unfortunately it takes some years to get a decent refinery up and running. NNPC refinereis that could have picked up the slack were sent into terminal decline by government choolsing subsidy over refinery maintenance in 1993/4.

douglaschukwu:
And NNPC thinks the solution is to import fuel rather than build functional refineries?

Lazy tuarts

If NNPC started building a refienry now, how long do you think it would take for it to be up and running?

See dangote refinery...work started in 2014, and it got finished in 2023. 9 years.

And before you start, in 1993, the then government was advised by the world bank that it was impossible to fund subsidy on refinery products from the NNPC refineries AND refinery maintenance and upgrades at the same time. The then government chose subsidy over refineries. The result was that from 1993-2009, there was no TAM done on the refineries, and by the time attempts were made to start doing them again, it was too too late. Here we are.

neutralmind:
I'm not in support of NNPC or the government.

However , it's important to note that Dangote is a private enterprise and in a free market.

He should buckle his sleeves and compete like any other business.

Lets bear in mind that monopoly is not healthy too

It appears Dangote is not willing to compete like any other business in Nigeria

You can't posit posit "competition" where one produces and the import freely that not a competition from all logical Pov

It's ridiculous when I hear people cite " Dangote Monopoly" how myopic can the elite be... Did Dangote at anytime stop any investor from building a local refinery
Our local refinery govt have refused to fix sincerely is it Dangote that as being sabotaging it

People must be reasonable that's not even a choice, it is not fair to dangotee he undertake so much burden to produce certain standard to sell and one marketer just go to Burundi bring in blended fuel and sell same price or less than dangote price

We are not just killing local production, more importation will only compound our balance of trade. The genuine stand against " monopoly is for govt to fix our refinery or private individuals build one tew that's the way to go

Look at the market, if not for Dangote today we will be buying fuel for 2,500 per litre trust those marketers to use middle esst crisis to exploit Nigerians, we know the shege we've seen from these rogues in the last 30yrs are they fair to us
Check all independent marketers how many sells lower than Dangote price ...who is the real anti people

YouandiAllofus:
NNPC at it again... No be dangote say make una mismanage una refineries.

The NNPC should pick up the challenge of revitalizing it's refineries and sell refined products at a cheaper price. This is the best way to bring down the cost of refined products alongside selling crude products to refineries at a reasonably fair price too.

Why is Dangote also afraid of importation? Are locally manufactured good/services meant to be expensive than imports ?

Or is there something we need to know that these guys aren't spilling out?

nairalanda1:
It would cost 23-25 trillion naira to subsidise fuel to N200 per liter today, if not more.

Our budget is 54 trillion naira.

Since the government has not budgeted for subsidy this year, that means that money would have to be taken from other sectors of the budget to pay for the subsidy

Which means that you probably won't get paid your minimum wage at all at all.

Also, many people in AUstria do not use their cars like we use them , they use public transport, and they use their cars sparingly. And for the public transport, they pay excessively hefty taxes...that would make tinubu tax look like chicken feed.

Make we face reality, abeg.

Abeg with their hefty taxes they still have access to basic amenities, would that be said to an oil rich country like Nigeria?

We are still struggling to build good roads, Healthcare centers in the rural areas in comatose state, what about education? Nothing to write home about.

We still provide our own water, Security and even electricity... What is my tax then used for? Politicians embezzling public funds without repercussions and consequences.

Nigeria would have passed this level we are in today.... Even Pensioners are crying over their funds... Bros no be life we dey live in this country.

I've had opportunities to travel to different countries as a seafarer, water dey commot for my eyes when I see countries improving and developing faster than us.

If we had good public transport system and steady power supply, this fuel pricing wouldn't have been a big issue to us.

nairalanda1:
If you Nigerians had supported total subsidy removal in 2012, or even long before 2006, by now we would have had more refineries competing with dangote.

oga shut up

While I don't support Dangote's plea, I feel modalities should be put in place for him to get crude oil at best price because I recently heard NNPC allegedly uses middle men outside the shores of this country to increase the cost of crude per barrel being sold to Dangote, to counterbalance the price margin of the end product thereby bridging the cost of his product and importers own.

nairalanda1:


1. Saudi uses about 60 billion dollars, which is way above our budget of 40 billion dollars for this year, to keep fuel cheap. Unless you want us to take our entire budget, borrow 20-30 billion on top, and use it to fund subsidy for fuel so that we can all have cheap fuel, while salaries go unpaid and projects go unfunded, and everything grinds to a halt, but hey, you got cheap fuel that you cannot pay for now...lol......you better not bring Saudi here.

If Nigeria wanted to be like Saudi, we would have to earn something like 7-10 times what we earn from oil to be able to fund such subsides on fuel. SInce such money does not come overnight, it is either you want us to borrow the money...which would create the largest ever debt in the history of mankind, or you just accept we cannot fund oil subsides for now


2. Russia? Russia pays 22 billion dollars per annum to keep subsides on fuel. And it is not like that money is easy to come by.

And their fuel price per liter are between...466-1000 naira. Yes, it is low, but it costs a lot of money...which Russia can afford because it runs a diversifed economy...that produces industrial goods for export. Does Nigeria do that?

Nigeria relies on 1.8 million bpd revenue for crude oil. Our budget this year was about 54 trillion naira, to subsidise fuel to N200 per liter would require 22-24 trillion naira. Like I said, since we have no budget for subsidy...having a budget now, would mean taking money from other sectors of the budget, including money we borrowed...to fund the subsidy budget.

You know that means we go borrow more, worsening our debt, sha?

We are not RUssia or Saudi..we are Nigeria, a nation that since independence has not diversifed our economy and has a very poor tax uptake. And sadly tinubu dey continue am up till now

So, please forget subsidy, unless you want your debt to be around 500 trillion naira or more in two years time.

The solution to number 1 is simple and direct... Reduce the cost of governance.... Cut down the salary of the Senators and house rep or you merge them to one house...

Both state and FG Projects should be strictly monitored and money disbursed only from the CBN and must be transparent and all inflows and outflows must be updated in real time and open to scrutiny.

Consequences for stealing public funds must be severe to deter anyone from thinking about it.

Public funds stolen in this country can fund our budget for the next 5 years without borrowing.

We know the solution but keep turning a blind eye