₦airaland Forum

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

Low prices such as ₦1,600 while Dangote is ₦1,400?

Bluearrow:
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.

Price Balance like ₦1,500 per litre?

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

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

The most important question what is the volume of their minimum in their local currencies compare to Nigeria

Omoreal01:
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.

Vote in bad government and shifts on your fellow citizen while suffering and smiling

Yampotatocarrot:
My question is, will it actually be possible for other refineries to spring up, enough to reduce the price of fuel, seeing that subsidy has been removed?

Looking at the cost of a big refinery like Dangote's, will setting up many modular refineries help to improve the situation? (Emphasis on MANY... America has over 120 refineries)

Yes, other refineries springing up is completely possible.

BUA is already building his own and it is 200,000bpd
Just as he is increasing the capacity of his cement, he will also increase the capacity of his refinery as well because there is potential for increased energy consumption in Nigeria especially when we are on our way to industrialization.

He and Dangote are both increasing the capacity of their cement factories.

BUA is going from 17metric tonnes to 23million metric tonnes a year while Dangote is going from 53 to about 90 million metric tonnes.

I think the reason the two competitors are increasing their capacities is because they are confident that local demand will increase as we can already see that all the roads being constructed in Nigeria now are mainly concrete.

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.

Can you tells the cost of borrowing dollars from multilateral institutions with crude collateral, importing expensive substandard petrol and subsidizing it secretly

Bluearrow:
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.

Every intelligent person knows that petrol is determined by oil prices in the global market bad will only sell below it if the government introduce subsidy and reduce taxes and not the opposite.

pepericozi:
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.
.

If NNPCL refineries were working, the cheapest will be the current price you are buying.

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

So, BUA building refinery is richer than Dangote?

Henjor48:
I support competition

You support fairytales while suffering and smiling

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.

Let's also remind ourselves that Saudi Arabia has one of the lowest taxes in the world while Nigeria is the opposite

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.

Be typing healthy imaginary competition in capital letters while citizens of other countries are demanding for subsidies from there government.

MiddleDimension:
We already do.

Which one? Education!

Education is not cheap anywhere in the world including in Nigeria. If we pay the meagre amount we pay at the universities and in some cases, pay nothing at the primary and secondary levels, then it is because the government HEAVILY subsidizes it.

What we say we are not paying again, is the subsidy on petrol and such products; it is too expensive and we cannot afford it anymore.

There is no nation in the earth that primary education is not free. In most of those countries their education is far better than ours. The education systems in most countries are far better and cheaper than Nigeria education and it's only expensive to foreigners not to their citizens because it's heavily subsidies or it's based on students loan which when they start working government begin deducting such money.
Let me educate you. In UK schools are free for those who can't afford it until University graduation. They only start paying when they begin working.
So don't just come online and say what you don't know.
In addition In the USA, government subsidies span multiple sectors, primarily taking the form of direct cash payments, tax breaks, subsidized loans, and grants. The largest subsidies target Healthcare (Medicare/Medicaid), Energy, Agriculture, Education, and Housing.

What is our government doing for us, please tell me.

GoldenGTV:
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?

Expensive at ₦1,400 while your so called cheaper imported petrol is ₦1,600?

nairalanda1:
I am not speaking against subsidy, I am showing you with facts why Nigeria cannot afford subsidy witout getting into severe debt

As for Libya, under ghadaffy, they were doing 5 million bpd for six million people. That's why

Nigeria can afford subsidy 100%, you have to stop defending bad government

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

Are you aware that free market also involves petrol raising and falling with oil prices in the global market?

gigabyte13:
I love this, make dem carry am enter cement, salt and sugar sef.....
Make Dangote mind for touch ground small
Him shoulder pad too high.....
I just want competition in every sector of the economy like we have in the telecom.

Dangote is a bad businessman at monopolising everything he ventures into. If he's clever, it would have paid him more by developing a price mechanism template to guide the sale of Petroleum products in the country. If he sells at a competitive prices, nobody will ask for importation. Businesses will thrive, with the resultant effects on his business too. People will make money to pay for his goods and services. But no, he wants only himself to benefit at the detriment of the Nigerian masses. Again the wicked spirit of Nigerian playing out in him.

Government should just pay for energy products na so everyone can get it for free. Before now, Nigeria's budget on subsidy was more than it was on Education and Health. How sustainable do you think that is?

Gboss247:
Government of other countries are subsidizing energy products, reducing taxes while yours is doing the opposite and the only you could do is to quote imaginary competition theory while suffering and smiling.

Gboss247:
Vote in bad government using tribe and religion and blame Dangote for showing you your reality

Do you know one problem with you people? It's either u obsessed with Tinubu that everyone who says the truth or dies not align with una talk is supporting the government. Oga i dont give a hook about what you think, I have been in this industry for a long time becoming a sales manger for a depot and I know what I saying. To clear you I am from the SS proudly SS have nice day

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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.

In as much I praise dangote for building a refinery, he should not be the only one in the sector. if importers can't build and there is no subsidy again that the government wasted on some selected opportunist, then they should be allowed to source thier own petrol and sell. it is just a big shame on the various president we had when the refineries we're no longer working and couldn't resuscitate them. Nigeria is the only oil rich country which government don't have a working refinery.

Gboss247:
Nigeria can afford subsidy 100%, you have to stop defending bad government

Nigeria cannot

It would cost 22-23 trillion naira to pay for subsides this year.

Since it was originally not in the budget, the palava is that the money has to be taken from other parts of the budget

Which means borrowing to replace the deficit left by spending on subsidies

This is not a defence of government. Infact it shows that your government for the last two years has not raised revenue levels enough to enable subsidy funding.

Don't call me a Tinubu supporter again.

Swear say una no get blender for Malta wey una wan go back to

nairalanda1:
Reducing the cost of government won't do nothing

Total cost of government no reach ten trillion naira . E no reach 5 trillion self.

Meanwhile we need 23 trillion naira or more per annum to subsidise fuel

I don't have issues with subsidy, but the money should be put into good use instead of diverting it to personal accounts.

They should plug excess waste of public funds and channel into sectors that requires it.

fashrola:
I don't have issues with subsidy, but the money should be put into good use instead of diverting it to personal accounts.

They should plug excess waste of public funds and channel into sectors that requires it.

If they plug waste of public funds, it still does not improve our income.

I know, all of us like to imagine that if there was no corruption , money go dey, but what it means is that for us...there is 54-60 trillion naira to spend on the budget...and since there was no provision for budget in the subsidy, that means that the 23-25 trillion needed for subsidy this year would have to be taken from health, education, sports, agric, etc...and used to fund subsidy.

And the only way to replace it would be another loan, and that means more debt.

I am not excusing government, I am not supporting tinubu, I do not like APC, or any of the parties. I am even very cynical about government in this country. Since the late 1980's self. What you guys are seeing and saying now, was said and seen decades ago. Nothing has changed.

If Nigeria were to earn enough money for subsides, that means our annual earnings would have to be around 500 billion dollars...DOLLARS ...at least...that way we can pay for subsides and pay for refinery repairs and upgrades without a sweat. But since there is no way we can do that...we have to take loans


One thing that annoys me on this site is that telling this truth...not my truth, but the truth of expert views...gets me labelled government defender

How is it a defence of government to be saying that government has not made enough money to pay for subsides adquately? Eh? Answer me?

Your government is not making enough money, corruption is chopping the money that is left, and yet when I call for Nigeria to change its ways, all you guys do is pretend that 200 million people can live on less than 50 billion dolalrs.

It is not possible.

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

As always, he loves monopoly.

Not his first,

Won't be his last.

And every successive government keeps enabling it by destroying indegenous industries, and collecting kickbacks.

Dangote shouldn't be allowed to have monopoly over local consumption because that man is so greedily ambitious to be among the top 10 richest men on planet on the sufferings of Nigerians that he can sell a litre of fuel for 5k to us if he gets the chance

Gboss247:
Expensive at ₦1,400 while your so called cheaper imported petrol is ₦1,600?

And who have imported and sold for you at that price? Except and Except the issue of inferior or substandard products, Opening the markets to players will beat down the price on the long run.

ogascomax:
There is no nation in the earth that primary education is not free. In most of those countries their education is far better than ours. The education systems in most countries are far better and cheaper than Nigeria education and it's only expensive to foreigners not to their citizens because it's heavily subsidies or it's based on students loan which when they start working government begin deducting such money.
Let me educate you. In UK schools are free for those who can't afford it until University graduation. They only start paying when they begin working.
So don't just come online and say what you don't know.
In addition In the USA, government subsidies span multiple sectors, primarily taking the form of direct cash payments, tax breaks, subsidized loans, and grants. The largest subsidies target Healthcare (Medicare/Medicaid), Energy, Agriculture, Education, and Housing.

What is our government doing for us, please tell me.

LOL..

If you notice, many of those countries with free education pay for the free education with taxes , taxes , taxes.

UK that you even mention, education is free until University...then you pay for the university education with fees starting at 6000-9000 pounds. It is only Scottish citizens that enjoy free university education provided they study in a Scottish university

Anytime they mention tax here, you guys will protest, plus the majority of you folk do not pay tax to federal and state governments.

So, how dem go fund subsidy like they do in US and UK for all of you.

Even those US subsidies, they are for means tested poor people, not for everyone.

GoldenGTV:
And who have imported and sold for you at that price? Except and Except the issue of inferior or substandard products, Opening the markets to players will beat down the price on the long run.

Keep waiting for imaginary beating down of prices while crises in the Middle East continues.

Nothing wrong with competition but it must be fair.

Ensure that only high quality fuels are imported, and there should be a low import duty on it to prevent dumping of Russian products.

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.

Repairing local refineries wont work. Port Harcourt refinery cant produce fuel at competitive prices. They are all old and obsolete.

Imports are okay but the government must make it a duty that only high quality products are brought. In addition, place a small tariff to prevent the dumping of cheap Russian products.

Gboss247:
Expensive at ₦1,400 while your so called cheaper imported petrol is ₦1,600?

Which source said the imported fuel will be 1,600 or you've bought it before in the past?