₦airaland Forum

Why cant they just build their refineries like him and challenge his purported monoploy. Why should we still be importing PMS in 2026?

These marketers are just rent seekers, many of them dont want to invest in the country they go and imported blending petrol which is mixed with condesates like SRG.

Many of you have forgotten the story of contaminated fuel which ruined many vehicles that came from nnpc, those of you who own vehicles dont ask yourselves why the 30 litres you bought just finished within 1 hour of driving.

The importers are economic saboteurs, we cannot continue relying on otherr countries for our fuel, these countries get our crude for next to nothing and expect us to buy fuel from them.

I support Dangote, we need more like him, if you dont want monopol establish your own outfit, its that simple.

Why isnt there monoply of akara sellers? Otondos!!!

nairalanda1:
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.).

As I have reiterated for the umpteenth time, the problem was and is not subsidy itself but corruption. Those in government were just using subsidy as an avenue to steal billions of dollars from our common treasury. Today, they steal far more directly, without using subsidy as excuse. OPEC allowed Nigeria to reserve 300,000 barrels per day for local consumption. The government decided to ship the crude to overseas refineries to refine for us, in a crude for petrol swap. We did not pay for the refining. So there could not have been any subsidy when we imported the petrol back into the country. Instead, the government sold the crude, unaccounted for the money, then turn around to import from third parties, and at the same time claim to pay subsidies.

A country like Nigeria with huge crude and gas reserves, a huge energy deficiency, and a minimum wage of N70,000 ($54) per month have no business buying petrol at $1 per litre.

wirinet:
As I have reiterated for the umpteenth time, the problem was and is not subsidy itself but corruption. Those in government were just using subsidy as an avenue to steal billions of dollars from our common treasury. Today, they steal far more directly, without using subsidy as excuse. OPEC allowed Nigeria to reserve 300,000 barrels per day for local consumption. The government decided to ship the crude to overseas refineries to refine for us, in a crude for petrol swap. We did not pay for the refining. So there could not have been any subsidy when we imported the petrol back into the country. Instead, the government sold the crude, unaccounted for the money, then turn around to import from third parties, and at the same time claim to pay subsidies.

A country like Nigeria with huge crude and gas reserves, a huge energy deficiency, and a minimum wage of N70,000 ($54) per month have no business buying petrol at $1 per litre.

Consumption subsides cause corruption. It's not just a problem in NIgeria

The SNAP program in the USA which makes food available at subsidised prices for the poor is a very good example of how a good programme of consumption subsides can be corrupted

Plus here is the problem with subsides in Nigeria

1. We do not tax enough of the gdp to pay for it

2,.We do not earn enough to pay for it properly AND maintain the refineries in good working order

3. We do not make any of the components of most of our refineries at home (most of our refineries were built with imported stuff, if not all)...meaning maintenance and upgrades will cost far more money

4. The number one source of income for government is oil. For it to pay us enough cash to keep fuel subsidised AND to keep the refineries world class, we would need oil to be above 140 dollars per barrel forever. That is not possible, and even crude until this year was always below government benchmarks prices for the budget...which worsens the deifict.

5. And that's before corruption comes in to decimate government revenues.

Note that I did not deny corruption. There is corruption, but the problem is the corruptuion is a byproduct of the consumption subsidy

Keep in mind that estimates of fuel consumption under subsidy were over 100 m liters a day....because most of it was smuggled. And it was not only by big men, but by hundreds of thousands of Nigerians, oridnary nigerians, across all borders, carrying fuel to places, even as far as the Central African Republic and Ghana!

Plus once crude prices go up, so do subsidy costs....which worsens the government ability to fund the budget.

And the whole system lends itself to lying, unless you are ready to have robots tracking every liter of subsidised fuel.

That;s how the corruption worked

We can agree to disagree though.

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

Can anyone explain what the Oil and Gas merchants going do with these primitive accumulation of wealth. What are you guys going to do with these moneys? Okay maybe you derive joy in punishing the populace in the name of trying to be the richest black man? I don't understand.

Sunkab:
I bought at the rate of 1,170 yesterday night.

Wow! That's good

This Dangote thing no clear.

This dangotemust be a rogue,no wonder he wanted to be sole importer and distributor of petroleum problem.He has almost succeeded in monopolizing the sector. Greedy men everywhere

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)>

As long as a critical part of the economy is now largely a monopoly then it doesn't benefit the people. It benefit the corrupt politicians, elites and their cronies

I bought petrol at NNPC this morning at #1,200, drove past Total thereafter and observed that Total is selling at #1,265.

All these enemies of Nigeria. How can you tell me that you bringing the nation forward when you are importing refined crude that could be done here and create jobs. What can of senseless competition is that? You are hell bent on taking us 10 step backwards when we have made progress. That your plan would not work. As Nigerians push against this same thing they did to our textile industry now we get them from China instead of it being produced here.

omoredia:
As long as a critical part of the economy is now largely a monopoly then it doesn't benefit the people. It benefit the corrupt politicians, elites and their cronies

1. There are five other refineries, and that excludes BUA refinery currently under construction.

2. The reason why it is a monopoly is because the subsidy in place before 2023 discouraged banks and investors from investing in other refineries. Dangote was the exception because a) he had other lucrative businesses and assets that could be used as collateral b) government was ready to give him some backing since he was the only one being serious about it...alongside five other refineries, including one 150000 bpd in Edo state.

Also, NNPC refinereis were run to the ground because from 1994, it became too difficult to maintain and upgrade them, and still sell fuel, kerosene and diesel among other things at subsidsied rate..which meant that maintenance and upgrades were skipped in return for keeping production and by extension subsidy costs low . We now see the results.

omoredia:
Dangote is a crook. This is a man that Buhari literally collapsed our economy to give him cheap fx to build the refinery. Evil

It's so annoying I swear

omoredia:
As long as a critical part of the economy is now largely a monopoly then it doesn't benefit the people. It benefit the corrupt politicians, elites and their cronies

If it's monopoly use that funds that you are using to import come together as one and build yours. Enough of all these monopoly yarn it doesn't hold water. Before Dangote started building his refinery who stopped then from building a refinery? I'll tell you who greed! They realised they made money from collection of subsidy than actually building a refinery that would have created jobs. Bunch of greed mfs

Wstation:
If it's monopoly use that funds that you are using to import come together as one and build yours. Enough of all these monopoly yarn it doesn't hold water. Before Dangote started building his refinery who stopped then from building a refinery? I'll tell you who greed! They realised they made money from collection of subsidy than actually building a refinery that would have created jobs. Bunch of greed mfs

It wasn't greed that stopped others from building refinery.

The problem was the subsidy. Subsidy meant that most refinery licence holders won't be able to get loans from banks and financial institutions because the potential of low profits and irregular subsidy payments meant that any refinery owner won't be able to pay the loans back...risky for banks.

Yeah, they made money from subsidy payments...and they did it the corrupt way. But assuming that subsidy had been removed in 2012 as planned, they would be making far more money from completed refineries.

There was a reason why subsidy had to go...since 2012, if not earlier.

Reading through the comments I realise that alot of Nigerians are Olodos they have no critical thinking ability and they can be swayed by propaganda. Imagine celebrating the selling of your children's future? Imagine not outraged that your National Refinery is pushing for imported refine crude and fighting the only sensible man that decided to build a refinery in Nigeria. Imagine being on the side of greedy marketers that are hell bent on taking us back to the time when we import refine crude. How can anyone not see this? Before Dangote refinery, ask the marketers who was their monopoly? Why didn't they build a refinery then? We want Nigeria a country that has years of rot and failed infrastructure to function in one term of a president. How? We are not even ready to implement policies that our children would benefit from we are only worried about now! We want the gains now so that it is our children that would then pay the price. The same thing out fathers and grandfathers did to us we are repeating the cycle. We seek short term gains instead of strategizing so we can build a system that works so that our generation would rep the benefits. How come no one else is thinking this way? We need to fix all abnormalities so that they can't start pushing it as normal.

nairalanda1:
It wasn't greed that stopped others from building refinery.

The problem was the subsidy. Subsidy meant that most refinery licence holders won't be able to get loans from banks and financial institutions because the potential of low profits and irregular subsidy payments meant that any refinery owner won't be able to pay the loans back...risky for banks.

Yeah, they made money from subsidy payments...and they did it the corrupt way. But assuming that subsidy had been removed in 2012 as planned, they would be making far more money from completed refineries.

There was a reason why subsidy had to go...since 2012, if not earlier.

The point is that we need to stop chasing short-term gains and start addressing the inefficiency and corruption that have eaten away at our infrastructure. It's okay if we don't reap all the benefits ourselves. What matters is building a system our children can inherit and improve upon.

One day, they should be able to look back and say, "Thank you for making the sacrifices that allowed us to enjoy these benefits."

Going back to importing refined petroleum products does not move us toward that goal. It only keeps us trapped in the same cycle we've been trying to break.

Wstation:
If it's monopoly use that funds that you are using to import come together as one and build yours. Enough of all these monopoly yarn it doesn't hold water. Before Dangote started building his refinery who stopped then from building a refinery? I'll tell you who greed! They realised they made money from collection of subsidy than actually building a refinery that would have created jobs. Bunch of greed mfs

The same govt that supported Dangote was the one that stopped them. Danote is doing the bidding of corrupt leaders

omoredia:
The same govt that supported Dangote was the one that stopped them. Danote is doing the bidding of corrupt leaders

The thing is, no one stopped the other licence holders from building refineries...as seen in the list below

Waltersmith Modular Refinery (Imo State): Located in Ibigwe/Ohaji-Egbema, currently producing 10,000 BPD.Aradel Refinery (Rivers State): Formerly known as the Ogbele Modular Refinery, located in Ogbele, refining 11,000 BPD.Edo Refinery & Petrochemical Company (Edo State): Located in Ologbo, processing 1,000 to 6,000 BPD.Duport Midstream Refinery (Edo State): Operational modular facility processing up to 10,000 BPD.OPAC Refinery (Delta State): A private refinery in Delta State capable of processing 10,000 BPD

And then there is BUA who is building a 20000 bpd refinery in Akwa ibom state.

The reason why others could not build refinery was not because of corrupt government

(Note that importing fuel and paying for subsides for fuel was chopping a lot of government revenue from oil. That has the effect of reducing government revenue, and by extension opportunities for chopping. Loan monies, in theory are ususally linked to certain projects and conditions. Looting happens, but it is not that easy).

The problem with subsidy is government sets the prices of refined products below the production cost, which leads to the sector losing money. Subsidies are supposed to pay for the losses./cover the losses...but because of the above, plus poor revenues from oil and other sectors...and corruption ....subsides were usually never enough to cover the loss

Since a potential refinery in nigeria under subsidy would lose money rather than make it, most banks refused to lend to potential refinery owners. They would rather lend to a dangote, because dangote had a lot of other lucrative businesses that could be used as collateral just in case. THat is something most licence holders did not have.

And since subsidy was removed, about 20 refinery projects including BUA, three of which are large scale projects...are in the pipeline or ongoing.

If subsidy had been removed in 2012, by now people would have built far more refineries since. And we won't he having this conversation

I still agree with you, government stopped the refineries from being built...the problem was...subsidy.

Lanruze:
The Peace talk between the US and Iran is still very fragile.

The falling global price of crude is still regarded as very "sticky".

Let the market forces determine the price or if FCCPC have the balls, let the take action.

twenty more characters needed

Betterthanwalki:
i will support tinubu 3rd term if this fuel can come to 260 naira

Me I will support him for 5th term if the price is dropped to 180

Dangote doing what he knows how to do best 😎

nairalanda1:
The thing is, no one stopped the other licence holders from building refineries...as seen in the list below


And then there is BUA who is building a 20000 bpd refinery in Akwa ibom state.

The reason why others could not build refinery was not because of corrupt government

(Note that importing fuel and paying for subsides for fuel was chopping a lot of government revenue from oil. That has the effect of reducing government revenue, and by extension opportunities for chopping. Loan monies, in theory are ususally linked to certain projects and conditions. Looting happens, but it is not that easy).

The problem with subsidy is government sets the prices of refined products below the production cost, which leads to the sector losing money. Subsidies are supposed to pay for the losses./cover the losses...but because of the above, plus poor revenues from oil and other sectors...and corruption ....subsides were usually never enough to cover the loss

Since a potential refinery in nigeria under subsidy would lose money rather than make it, most banks refused to lend to potential refinery owners. They would rather lend to a dangote, because dangote had a lot of other lucrative businesses that could be used as collateral just in case. THat is something most licence holders did not have.

And since subsidy was removed, about 20 refinery projects including BUA, three of which are large scale projects...are in the pipeline or ongoing.

If subsidy had been removed in 2012, by now people would have built far more refineries since. And we won't he having this conversation

I still agree with you, government stopped the refineries from being built...the problem was...subsidy.

Why is it that the bandits affiliates are being helped in bysiness? Connect the dots

omoredia:
Why is it that the bandits affiliates are being helped in bysiness? Connect the dots

Thanks for implying I support bandits, and for running away from the real point.

Come back when you know how to stay on point, and stop being abusive

Bandits is not the topic of this thread.

Your response shows you have lost the argument and have no response to my points raised, so bandits. LOL. Classic adhomien. Sign of refusing to do the hardwork of thinking.

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.

Qualities are not same and Nigerians get blamed instead of DPR. Wonderful way of thinking.

Fuckyoumod:
I laugh at you because you will keep selling fried akara and kuli-kuli all your life

I didn't ask you to describe yourself, but since you did. No problem!

Gboss247:
I didn't ask you to describe yourself, but since you did. No problem!

ooh...So You are scared of selling akara and kuli-kuli all you life? You don't want to but want 170 million Nigerians, master degree holders, millions of graduates and other hard working Nigerians to sell akara and kuli-kuli on the street. You need a head evaluation.

Fuckyoumod:
ooh...So You are scared of selling akara and kuli-kuli all you life? You don't want to but want 170 million Nigerians, master degree holders, millions of graduates and other hard working Nigerians to sell akara and kuli-kuli on the street. You need a head evaluation.

Continue to describe yourself!

omoredia:
Dangote is a crook. This is a man that Buhari literally collapsed our economy to give him cheap fx to build the refinery. Evil

Cheap forex?
Which one is cheap forex again?

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.

The biggest solution of Nigeria has spoken, shifting blames!

Josywhyte:
Why should we as oil producing nation be buying pms at N987? It's still on the high side. 200 at most

When your naira exchanges for ₦1,360/$, what do you expect?

Poske95:
See the reason why the APC government is a pain to the people.
The government speaks for the Capitalists and then drive their policies .....then what is their duty ?!
...and it ends impoverishing the people

All of sudden, APC that is a full blown communist is now capitalist.
Why are communist so good at blame shifting?

opera1:
Still wondering how local product icost pass foreign/imported products.

Still how in 2026 you are to realized that you buy petrol at pump prices and not depot prices.