₦airaland Forum

yommen:
While government-owned refinery have been thrown into the dustbin.

How can you say this about the wonderful work of All Promises Cancelled, APC propagandist liars since 2015

A-looter Propaganda Conmen, APC refineries are working since 2015! Please update your story.

Princecalm:
Jul 29, 2015

The Nigerian National Petroleum Corporation has announced that the Port Harcourt and Warri refineries have been successfully re-streamed after a nine-month rehabilitation exercise conducted by its in-house engineers and technicians.

The corporation, in a statement, noted that both plants commenced preliminary production of petroleum products after successful test-runs, adding that while PHRC was ramping up its operation to about 60 per cent of its 210,000 barrels per day capacity, WRPC production was projected to hit 80 per cent of its installed 125,000bpd capacity.

The NNPC said the Port Harcourt refinery was projected to boost the nation’s local refining capacity with a product yield of five million litres of petrol per day, while Warri refinery would contribute 3.5 million litres of petrol.

Providing insight into the rehabilitation exercise, the NNPC noted that it had to adopt the phased rehabilitation strategy after the Original Refinery Builders, who were initially contacted for the project came up with unfavorable terms.

It said, “Though a decision was taken in 2011 to rehabilitate all the refineries using the ORB of each of the refineries, we were impelled to switch strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavorable terms.”

The NNPC stated that the nominated partners, as sole-bidders, came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations.

It added that the proxies were also unwilling to provide post rehabilitation performance guarantees.

The corporation said, “The phased rehabilitation strategy which entailed phased and simultaneous rehabilitation of all the refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.”

The national oil firm said the phased rehabilitation programme, which started in October 2014 after the required funding stream was established, created a 70 per cent reduction in costs which helped largely in mitigating the financing challenges of refinery rehabilitation.

It observed that with the successful re-streaming of the PHRC and WRPC, attention has now moved to the 110,000 barrels per day Kaduna Refining and Petrochemicals Company which was billed to come on stream soon.

http://www.punchng.com/news/pharcourt-warri-refineries-commence-preliminary-operations-nnpc/

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saintopus:
Dec 06, 2024
The PH Refinery ships its first export of petroleum products to Dubai.

The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.

The ship will load 15,000 metric tons of the product, which translates to about 13.6 million litres.

Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.

The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.

The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.

Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.

https://guardian.ng/energy/nnpc-begins-export-from-ph-refinery-as-dubai-firm-buys-first-cargo/

yarimo:
Both of you are criminals

I seem to be agreeing with you totally early this morning.

Both are criminals truly. They should put Dangote to shame and load petrol stations with cheaper alternative

franchasng:
They should not disturb Dangote oh, he needs to make more billion dollars so that he can challenge Elon Musk and so that he can make more money to take over more economic sectors of Nigeria.


By the way, he is providing jobs for some few thousand number of Nigerians, Nigerians should show appreciation by keeping quiet

When did thousands of employees turn to few?

Refinery workers.
Tanker drivers.
Other associated workers.

Not to talk of Dangote Sugar.
Dangote farm amongst others.

If:
Ikedi Ohakim
Emeka Ihedioha
Ayo Fayose
Akinwunmi Ambode
Raji Fashola
Brash, indolent Abaribe
Theodore Orji
kwakwanso
Ganduje amongst others
can each employ 5% of Dangotes number of employees, maybe, perhaps, maybe.........

I challenge you to defend any of those I mentioned

Akwara25:
Dangote is the biggest problem of Nigeria ..
Upon he's doing business with Nigeria storen money but he doesn't have conscience for Nigerians... God bless those that are against Dangote evil plans of monopolization of our oil sector.

Nigerian stolen money?

Show us proof?

Like he comes from a wretched family!

A man built his business and now you saying it’s all by stolen money like he was a governor or president before.

Shot up. You are just talking rubbish. What is the correlation between removing subsidy and building more refinery. You think is removal of subsidy that build refinery for dangote.

Infact, dangote had finished building refinery before your govt even wickedly remove subsidy.

nairalanda1:
1. Dangote started building his refinery under GEJ...and the government then assissted in helping him get some of the loans

2. Total loans dangote took was 20 billion dollars, out of which about 3 billion came from government. Which have since been repaid. The other loans are from banks local and international...which do not come cheap. They ain't government

3. Yes, government gave him cheap dollars, because he was building a project that would eventually provide some benefit to the economy. And probably bring in more money to the country...which is already happening as he has not only employed lots of nigerians, but is exporting crude products to other countries.

4. And if Nigerians had come out in 2012 and told the Ojota crowd to keep quiet, there would have been more domestic refineries. If Nigerians had supproted the removal of subsides in 1992/3, there would have been more refienries, and the NNPC refineries would have still been working and producing at very high capacity

5. Finally, if you work in buisness, you would sell your product at a price that keeps your business running well, and leaves you to earn money...if people like, let them call you evil. They are not you. They don't have to pay tax, maintenance costs, and salaries, and now pension payments.

6. Communist countries in the past dealt with all those 'evil' businesses and sold product at people's prices. Result...scarcity and black markets that sold product at heavily inflated prices.

All in all, am happy that we have refineries going up in nigeria, because the government removed subsides (under duress, but that's ok,sometimes hard times forces people to make sane decisions)>

Regsys:
Monopoly never did the consumers well.

Never. Let's hope the other refineries come on stream soon - to at least weaken the present monopoly a bit.

Everyone can now agree that Mr Farouk that was having a confrontation with dangote then as regard importing of petrol was right all long. Nigeria is a country where an average business want to make big return on their investments within a very short time at the expense of exploitation of the masses because the masses here endure and adapt hardship so fast unlike the western world..

It is only the importing price of petrol that was forcing dangote hands to reduce the petrol price to force out the marketer out of the market so they sell at a lose and not being intentional about it to the masses. In coming days now you will see how he will reduce his gallantry price in order to be more cheaper than the imported fuel so people will be force to buy from him alone. More licenses should be issued to the importer so the market won't be monopolized and his head will be correct then.....

Macphenson:
Pls NNPC should give more importers license to import fuel. This is exactly why Dangote is against those licenses so that he can have monopoly of the market and exploit Nigerians recklessly.

Why can't all these bloody importers pool funds and build a refinery of their own to rival dangote's. How can a country as rich as Nigeria don't have a state owned refinery that can produce fuel at a subsidized price for the citizens, sell excess to other country, use the money derived to build infrastructure and social services for the good of all. Truly Nigeria is cursed and was designed to never work. Thunder fire the British. Honestly I can't fanthom the level of advancement of Biafra land if we weren't forced to this contraception

yarimo:
Both of you are criminals

You don para sotey you dey vex for una propaganda 🤣

WonderGod:
Shot up. You are just talking rubbish. What is the correlation between removing subsidy and building more refinery. You think is removal of subsidy that build refinery for dangote.

Infact, dangote had finished building refinery before your govt even wickedly remove subsidy.

Thanks, and good morning. Have a good day, and a prosperous one too.

ojbanja:
Your number 4 is off ....the blame is on an incompetent leader who saw what needed to be done to save the country but lacks the courage and vision to do it. Tinubu did it despite the opposition.thats what is called a leader.

TInubu did it because he had no choice, not because he was a principled leader.

dont ask Dangote, ask your President what he is doing about it.

keemsleek:
Lol, I laugh when pple say, if they have supported the removal of subsidy then. The same thing happening now would have happened then.

They same way they are butchering tinubu will be the same way Jonathan would have been massacred. Nigerian don't have patience and politics will entered. The only thing that would have saved jona at that time was that Internet hasn't exploded like that during his era.

Nigerians that expect everything to be free or pay little for everything.

Even then, it should have gone.

2012 WAS even too late...it should have gone in 1992. Oga Babangida and Abacha both wanted to stay in power for ever and ever...so, they didn't remove subsidy, because fear (yes, even someone as strong as Abacha).

Even tinubu removing subsidy, the guy would have kept it, but our debt servicing was eating over 90% of the revenue...by August 2022. IMF and the World bank were looking at us one kind. Result...tinubu suddenly saw the light and removed subsidy.

Regsys:
Monopoly never did the consumers well.

Imaginary monopoly after using tribe and religion to vote in bad government

Macphenson:
Pls NNPC should give more importers license to import fuel. This is exactly why Dangote is against those licenses so that he can have monopoly of the market and exploit Nigerians recklessly.

I hope you know that Nigeria imports Octane 89 and 91 petrol and sell it to you as octane 95. It is just like a phone seller, selling you iPhone 11 as iPhone 17.
Let's not forget that the importation is funded with borrowed dollars collateralized by crude.

ironheart:
This means selling petrol at N300 is possible. But our wickedness will not allow us. The government was quick to remove subsidy and abandoned the masses to the dogs..

When will you stop deceiving yourself?

HacheNoire:
Is the quality same?

We know what Nigerians go for-cheap adulterated low octane fuels.

Why Nigerian mechanics will continue to get rich!

Especially those ones that buy Mercedes and Audi, their mechanic can never lack.

Leave to be celebrating marketers who import octane 89 petrol and sell it to them as octane 95 petrol.

Fuckyoumod:
I laugh at people who think monopoly in any economy is a progressive economy or anything good to the people.

Right from time immemorial economic monopoly of any form has always been a bad thing. it's getting clearer by the day that Dangote does not mean well for this country.

Dangote refinery should never be allowed to be the sole supplier of fuel in an economy as weak and dying as Nigeria's.

Fuel should be between 698 - 750 naira by now.

I even laugh at people like you who believes in imaginary monopoly after using tribe and religion to vote in bad government

KomonSense:
Premium Motor Spirit (PMS or Petrol) import landing cost has dropped to N983.92 per litre as st June 24, 2026, falling below Dangote Refinery’s gantry price of N1,125 per litre, according to data from the Major Energies Marketers Association of Nigeria (MEMAN).

Comparing the prices of octane 89 petrol to 95 petrol

AWONEYAN:
When they want to increase the fuel price. They increase in hundreds of naira.
To reduce they're doing it in Kobo.
How should imported fuel be lower than the non imported one from Dangote

Because Dangote buys crude from abroad in dollars.

Yes, I am in full support of this competition as long as the quality & standards are not compromised.

So, let the competition continue to kill monopoly.

Thank you for your attention to this matter

Islie:
https://leadership.ng/petrol-import-landing-cost-drops-to-n983-92-litre-below-dangotes-n1125/

Welcome development

We expect PMS cost at pump to come down around N900/ltr

Dangote and co should do better

ironheart:
This means selling petrol at N300 is possible. But our wickedness will not allow us. The government was quick to remove subsidy and abandoned the masses to the dogs..

Selling fuel at N300 Is not possible.

OK, refining the raw crude into petrol costs N145 to N245 naira. The problem is...taxes, maintenance costs, etc have to be added on, and then there is transport costs, which push the gantry price to over N1000 or more.

Also, refining fuel generates some waste...and that waste has to be covered in the costs, since it can't be used for anything.

Also, Dangote and other refineries here pay wages, pensions, etc,...and they are paid at close to global standard. Because if dangote is not paying well enough, most of the oil workers can japa and get a similar job with foreign companies (and yes...it has been happening, and it happens.).

As for subsidy, government bringing back subsidy is going to cost the budget 23-30 trillion naira, budget is 55 trillion naira. We already have a deficit in the budget of 23 trillion naira that miust be funded by loans. Taking such money out of the budget to fund subsidy...that would put fuel at N200 per liter ....would cost as I said 23-30 trillion naira.

That money must be replaced, and it will be with LOANS...tax revenue is too low to fund the budget on its own, and oil prices are dropping, and even when they were high, we already had a debt of N150 trillion naira to pay off (rumor has it that the former minister of finance was removed because he was using more of our recent oil windfall to sort out the debt, meaning no money for five star prokects, lol).

And that means more debt . A lot more debt.

nairalanda1:
Even then, it should have gone.

2012 WAS even too late...it should have gone in 1992. Oga Babangida and Abacha both wanted to stay in power for ever and ever...so, they didn't remove subsidy, because fear (yes, even someone as strong as Abacha).

Even tinubu removing subsidy, the guy would have kept it, but our debt servicing was eating over 90% of the revenue...by August 2022. IMF and the World bank were looking at us one kind. Result...tinubu suddenly saw the light and removed subsidy.

Exactly all of them were scared to do it. They knew Nigerians wanted cheap things and now in democracy were vote matters nobody wants the anger of Nigerians. That y I said its some that has strong hrt that can rule nigeria.

nairalanda1:
Ha. the power of competition. This might make Dangote be forced to reduce prices.

Though as more refineries come up, we will eventually stop relying on imported fuel

In a way, we are suffering the consequences of bad decisions. Back in the 1980's and 90's, most of the nairalanders here would have said no to government remvoing subsidy. If we had done that back then, we would have had more domestic refining, and the NNPC refineries would be working very well too.

Competition from imported products? Have you seen anywhere in the world where government encourages completion between local products and imported ones? Governments protect local industries with bans, tariffs and grants.

If government encourages imports of Petroleum products, then investors would prefer to import and waste time and risk their capital building refineries.

It's is Dangote that is forcing others to invest in refineries. Monopolies don't exist for long. If imports are banned and refineries becomes too profitable, many investors including foreign companies would rush in to compete with Dangote.

nairalanda1:
Selling fuel at N300 Is not possible.

OK, refining the raw crude into petrol costs N145 to N245 naira. The problem is...taxes, maintenance costs, etc have to be added on, and then there is transport costs, which push the gantry price to over N1000 or more.

Also, refining fuel generates some waste...and that waste has to be covered in the costs, since it can't be used for anything.

Also, Dangote and other refineries here pay wages, pensions, etc,...and they are paid at close to global standard. Because if dangote is not paying well enough, most of the oil workers can japa and get a similar job with foreign companies (and yes...it has been happening, and it happens.).

As for subsidy, government bringing back subsidy is going to cost the budget 23-30 trillion naira, budget is 55 trillion naira. We already have a deficit in the budget of 23 trillion naira that miust be funded by loans. Taking such money out of the budget to fund subsidy...that would put fuel at N200 per liter ....would cost as I said 23-30 trillion naira.

That money must be replaced, and it will be with LOANS...tax revenue is too low to fund the budget on its own, and oil prices are dropping, and even when they were high, we already had a debt of N150 trillion naira to pay off (rumor has it that the former minister of finance was removed because he was using more of our recent oil windfall to sort out the debt, meaning no money for five star prokects, lol).

And that means more debt . A lot more debt.

Inclusive or exclusive of the cost of crude?

And how did you arrive at this cost? Did it include cost of equipments, depreciation, staff and labour, interest on capital, insurance, etc.

wirinet:
Competition from imported products? Have you seen anywhere in the world where government encourages completion between local products and imported ones? Governments protect local industries with bans, tariffs and grants.

If government encourages imports of Petroleum products, then investors would prefer to import and waste time and risk their capital building refineries.

It's is Dangote that is forcing others to invest in refineries. Monopolies don't exist for long. If imports are banned and refineries becomes too profitable, many investors including foreign companies would rush in to compete with Dangote.

Well, if we had removed subsidy in 1993, or even 2012, by now there would have been refineries galore competing with Dangote. If we had removed subsidy in 1993, NNPC would have still had working refineries.

Because Nigeria kept subsidy for way too long, no one, except you had the collateral of A dangote, or were really hardy minded...wanted to build a refinery here in Nigeria. And NNPC ran their refineries to the ground in the name of keeping costs low (not to mention the corruption opportunities in TAM costs , even when it was clear that the refineries were beyond resusication).

It takes time to build new refineries. Even if we started work on JUne 1 2023, it would take several years for the refineries to be finished, especially since costs may rise. SO, we are left with the competition from imports.

(Altho, dangote can meet domestic needs, as he says, but government wants to be voted back in, so, imports to compete.).

wirinet:
Inclusive or exclusive of the cost of crude?

Inclusive. But other costs come in before the fuel reaches the retailer.

But why are we focusing on dangote, I tot NNPC refinery were also producing fuel, so why has NNPC not reduced their below imported fuel. Any way sha, na God go punish all of them for exploiting the poor people in the country.

yarimo:
Both of you are criminals

they both turned Nigerians to chess game

nairalanda1:
Inclusive. But other costs come in before the fuel reaches the retailer.

Inclusive ke? OK crude is currently about $79/barrel, a barrel is about 180litres. So 1 litre is $79/180 = $0.4388. This in naira is about N570. Now, this is exclusive of shipping and insurance fees, and taxes.

Edit : my apologies. I just check Google, a barrel of crude is actually about 160 litres. So revising my calculations, 79/160 = $0.4937, which is around N642.
So before shipping, insurance, taxes, cost of refinery, depreciation, labour, maintenance, storage, etc. The cost of crude alone is N642.