₦airaland Forum

Dangote the Chief ripper.
Nigerians thought he was the Messiah that has come to save them from their economic quagmire occasioned by years of bad leadership and corruption, little did they know that he is the devil himself, who is determined to make fortunes out of thier predicament.
A very wicked black monopolist who doesn't give a bleep about the pains Nigerians are aready going through with his exergerated price of products, instead he is still further taking advantage of the poor masses.
Now, I don't know who is more evil between the FGN or Dangote.
As a Nigerian living in Nigeria, my advice, brace up for higher petrol price, dollar instability, and invariably the price of every goods and services .

OlujobaSamuel:
NNPC is the one punishing the people, not Dangote
NNPC wants to earn more by selling to him in dollar, they can easily maintain the crude for naira deal but they dont want to so as to earn more, the govt is quiet because they want more dollars, Dangote can't afford to be hunting for dollars to buy from NNPC, so the best is to transfer to marketers, marketers hunt for the dollars by adding tokens to a litre as cost of dollar sourcing from wherever they can

Exactly what am saying

Why stop selling to him in Naira


Just after how many years


Every country that I know tends to make conditions very favourable to major companies operating within them


After several years, your own refinery is it working, you made deal to do naira for crude, deal that everyone in the world saw, now after some years you stop,

Doesn't make sense

Solidex:
Dangote the Chief ripper.
Nigerians thought he was the Messiah that has come to save them from their economic quagmire occasioned by years of bad leadership and corruption, little did they know that he is the devil himself, who is determined to make fortunes out of thier predicament.
A very wicked black monopolist who doesn't give a bleep about the pains Nigerians are aready going through with his exergerated price of products, instead he is still further taking advantage of the poor masses.
Now, I don't know who is more evil between the FGN or Dangote.
As a Nigerian living in Nigeria, my advice, brace up for higher petrol price, dollar instability, and invariably the price of every goods and services .

I know for a fact you don run a business, if you do you won't be saying this

I no blame Dangote, I blame God weh let my Mama born me for this useless country.
God see America, Europe, asia and other good continents, come drop me for yeye Nigeria.
I am in pains.

Solidex:
Dangote the Chief ripper.
Nigerians thought he was the Messiah that has come to save them from their economic quagmire occasioned by years of bad leadership and corruption, little did they know that he is the devil himself, who is determined to make fortunes out of thier predicament.
A very wicked black monopolist who doesn't give a bleep about the pains Nigerians are aready going through with his exergerated price of products, instead he is still further taking advantage of the poor masses.
Now, I don't know who is more evil between the FGN or Dangote.
As a Nigerian living in Nigeria, my advice, brace up for higher petrol price, dollar instability, and invariably the price of every goods and services .

Nah, nothing of such will happen.. this is not Buhari era.
Trust me, Dangote just dug his own grave.

He'll lose the monopoly he currently has in cement sector very soon with the new entrants coming on stream. He should start looking at other African countries to go and invest, let's see if he'll hold their people and government to ransom the way he is doing in Nigeria

All these suffering are effects of privatization of large industries previously owned by Government which Dangote benefitted from.

Dangote is within the Lekki Free trade Zone. Does this new law affect them?

Just wanna know.

lawani:
Please can you explain the advantage here to any company on Earth of buying feedstock in any particular currency?
Why are all the companies in Nigeria importing feedstock not complaining?

1. Brother there is great advantage, not small, very great advantage , Naira to dollar is never stable, it going up and down, if all those time it will go up and down, there has to be a kind of cushion to maintain balance
There is nothing as great as buying your stock feed in currency and the selling in the same currency, you don't think of the exchange rate going up and down

2. If other are not complaining, then we need to look deeply, don't you think those companies are ripping us. Food for though,

oyekanwahab:
1. Brother there is great advantage, not small, very great advantage , Naira to dollar is never stable, it going up and down, if all those time it will go up and down, there has to be a kind of cushion to maintain balance
There is nothing as great as buying your stock feed in currency and the selling in the same currency, you don't think of the exchange rate going up and down

2. If other are not complaining, then we need to look deeply, don't you think those companies are ripping us. Food for though,

Naira isn't going up and down. It is now a relatively reliable store of value. However even if it were going up and down, it is what you buy that you will sell for you to make profit from which you will meet all your obligations like salaries and debt repayments. Things going up and down is a normal occurrence in business. Even the price of crude oil is going up and down. It is far more volatile than the value of the naira and you will never hear anyone complain. If you need dollar, you buy dollar and add any expenses to your operations expenses and your cost of buying one dollar at anytime can not be more than 0.01 dollar

Companies are ripping us? I don't think so as most of them sell at a fraction of the price in Europe

It's nnpc that caused it. Not Dangote, nnpc selling crude for him in dollars and expecting him to sell the distilled products to Nigerians in naira. How can that be balance?

kingsways:
Sale of products meant for local consumption in Nigeria in USD is unfair to Nigeria and Nigerians, and I urge both Nigerians and the government to reject it

1. Dangote got a good chunk of the fx used to build the refinery from Nigeria at official rates that were way below the market rate, and this is not a good way to repay that gesture

2. The new pricing policy breaches the regulations against dollarisation of the economy. It is illegal to price products produced in Nigeria and sold in Nigeria in USD

3. The policy will put the Naira under intense pressure as marketers will again begin sourcing USD to buy products

THIS POLICY IS BOTH WICKED AND ILLEGAL

i don't think the use of dollar as template extends beyond ..computing naira equivalence for transaction

i want to assert payment will still be made in Naira, Dangote refinery just trying to adopt a global pricing

Mccullum:
It's nnpc that caused it. Not Dangote, nnpc selling crude for him in dollars and expecting him to sell the distilled products to Nigerians in naira. How can that be balance?

The NNPC will be wrong to sell anything to Nigerians in forex. However the difference will not be significant

tobenuel:
Dj play me Elumelu by Young John



I didn't see anything naira or naira sign, everything is just dollars dollars, is that our currency now?

back to my song jare

Dangote is a wicked business and economic exploiter.

Solidex:
Dangote the Chief ripper.
Nigerians thought he was the Messiah that has come to save them from their economic quagmire occasioned by years of bad leadership and corruption, little did they know that he is the devil himself, who is determined to make fortunes out of thier predicament.
A very wicked black monopolist who doesn't give a bleep about the pains Nigerians are aready going through with his exergerated price of products, instead he is still further taking advantage of the poor masses.
Now, I don't know who is more evil between the FGN or Dangote.
As a Nigerian living in Nigeria, my advice, brace up for higher petrol price, dollar instability, and invariably the price of every goods and services .

Maybe informed Nigerians understand, Dangote. is not the problem ... when govt fail to meet dangote crude demand

the man import large volume of crude he refines, what do you expect

lawani:
Naira isn't going up and down. It is now a relatively reliable store of value. However even if it were going up and down, it is what you buy that you will sell for you to make profit from which you will meet all your obligations like salaries and debt repayments. Things going up and down is a normal occurrence in business. Even the price of crude oil is going up and down. It is far more volatile than the value of the naira and you will never hear anyone complain. If you need dollar, you buy dollar and add any expenses to your operations expenses and your cost of buying one dollar at anytime can not be more than 0.01 dollar

Companies are ripping us? I don't think so as most of them sell at a fraction of the price in Europe

While you point are valid, I think we should look deeply at point Dangote refinery raised and I quote

Sources familiar with the development said the refinery considered it necessary to adopt a uniform pricing framework after a growing imbalance between the currency used to procure crude oil and the currency in which refined products were being sold.

One official noted that Dangote refinery now receives a significantly larger share of its crude oil supplies from the Nigerian National Petroleum Company Limited under dollar-denominated supply arrangements, while a substantial volume of its refined products has continued to be sold domestically in naira.

The source explained that the mismatch had increased the refinery’s exposure to foreign exchange risks.

Explaining the rationale behind the move, another source added, “Dangote refinery is receiving fewer naira-denominated crude cargoes from NNPCL compared with dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira. The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars.”

Let ask the most very important question, why is nnpc giving Dangote refinery stock feeds in the dollar

lawani:
The NNPC will be wrong to sell anything to Nigerians in forex. However the difference will not be significant

During Bihari they agreed to be selling it to him in naira which will enable him to sell it to Nigerians in naira as well. But due to eyeing of more gains, they breached the agreement by selling crude in dollars to Dangote.

That'll force him to be looking for Dollars for the purchase of crude oil, with this announcement, marketers and Nigerians are victims of this circumstances.

chidiokay:
Maybe informed Nigerians understand, Dangote. is not the problem ... when govt fail to meet dangote crude demand

the man import large volume of crude he refines, what do you expect

Even the one provided are be priced in dollar you can imagine

flokii:
NO, the FG must reject this.
This is against the petroleum products pricing template

Dangote has no right to sell petrol in Nigeria using a foreign currency. The government should issue license to marketers to import and maintain the pricing of petroleum products in naira.

I was raising the alarm that Dangote doesn't mean well for this country.. if not Buhari that used CBN under Emefiele to fund his refinery project at ridiculously low FX rates, would the refinery be standing today?.
I know people like Otedola will keep quiet instead of telling the monopolist the gospel truth that he is too greedy.

This is the more reason PBAT should look into the petroleum sector and if possible concession our State-owned refineries to serious companies to run. Monopoly is never a good option, has never been and will never be an option.

Dangote has no right to sell petroleum products in dollars to marketers but the federal government have right to grant borrowed dollars to the same marketers to import substandard petrol from Europe?

flokii:
Nah, nothing of such will happen.. this is not Buhari era.
Trust me, Dangote just dug his own grave.

He'll lose the monopoly he currently has in cement sector very soon with the new entrants coming on stream. He should start looking at other African countries to go and invest, let's see if he'll hold their people and government to ransom the way he is doing in Nigeria

All these suffering are effects of privatization of large industries previously owned by Government which Dangote benefitted from.

After using tribe and religion to vote in bad government, shift blames to feel good.

oyekanwahab:
While you point are valid, I think we should look deeply at point Dangote refinery raised and I quote





Let ask the most very important question, why is nnpc giving Dangote refinery stock feeds in the dollar

.it is wrong but it may be accounting issues. Imagine if you have a company and you are selling in two different currencies. Then if they agree to sell in naira, they will still be the one to do the converting and if there is any difference no matter how small in the official and market rate, it will not benefit the NNPC.

I now think the problem is that the CBN has not yet totally floated the currency. They should know that they are not being fair to Nigerians. Nobody has two heads

lawani:
.it is wrong but it may be accounting issues. Imagine if you have a company and you are selling in two different currencies. Then if they agree to sell in naira, they will still be the one to do the converting and if there is any difference no matter how small in the official and market rate, it will not benefit the NNPC.

I now think the problem is that the CBN has not yet totally floated the currency. They should know that they are not being fair to Nigerians. Nobody has two heads

If nnpc as a federal government organ cant bear the accounting issues, is it now Dangote a for profit company that will now bear the accounting issues

Let look at the situation holistically and point finger to who we need to

Almighty NNPC

This is so so bad. Why will the govt allow this. The company is only trying to rip off from the country masses. This will affect the rush for dollars by independent marketers and crash the naira that just had a stable rate for a while now.

Does this mean that all others industries that are buying raw materials with dollars should start selling there goods to Nigerians in dollars too. Very stupid reason from Dangote refinery. Why has he not done same thing in all his product lines since they import most of there raw materials with dollars. Double standard weak reason from the Dangote refinery

Mr. Man did you read the article? I don't understand why crude from Nigeria is sold to Dangote in dollars?
There is a Mafia keeping Nigeria in abject poverty since petrol is the engine if the Nigerian economy!

Funkyswagzz:
When we warned about dangote refinery it was insult upon insult. Now that same dangote is telling you your naira is worthless but you won't say anything. Nigerians sorry oo just endure you hear? It will get better very soon

lawani:
I am yet to understand how the currency used in buying feedstock affects any company to make them sell to marketers in dollars
Most breweries in the country import all or most of their feedstock and they don't sell to marketers in dollars
Most steel mills do the same.
All car assemblers do the same
Pharmaceutical companies do thesame
In China, India, USA etc it is the same way for many manufacturers.

Even Dangote cement do import spare parts with dollars and they pay some staff in dollars

sometimes just a 5 minutes research could have solve this all importers sell their product dollar equivalent to naira same with the dangote.

kingsways:
Sale of products meant for local consumption in Nigeria in USD is unfair to Nigeria and Nigerians, and I urge both Nigerians and the government to reject it

1. Dangote got a good chunk of the fx used to build the refinery from Nigeria at official rates that was way below the market rate, and this is not a good way to repay that gesture

2. The new pricing policy breaches the regulations against dollarisation of the economy. It is illegal to price products produced in Nigeria and sold in Nigeria in USD

3. The policy will put the Naira under intense pressure as marketers will again begin sourcing USD to buy products

THIS POLICY IS BOTH WICKED AND ILLEGAL

Dangote did not get a good chunk of the foreign exchange from Nigeria, he got it from local and international banks as loans. Proper loans. Out of the 20 billion dollars used for that refinery, only 3 billion came from the government at 'discounted rates' which he has since claimed to have paid.

Also, didn't you read the article?

thesolutions:
The ripoff continues. Government only hope is to bring down the exchange rate. But how can they when they don't have the dollar.
They think this is a good bargain but they will see it very soon. The volume of dollar marketers will be demanding to purchase these products from dangote will be more than what they are already trying to gain in the deal. If they withhold the dollar, scarcity will be noticed.
Don't keep loose ends with Dangote.

This is a Long read but it worth the time.

Imagine Musa owns a bakery.

To bake bread, Musa needs flour. The people selling him flour say:

> "Musa, from now on, you must pay for flour in US dollars, not in naira."



But Musa is selling his bread to customers in naira.

Now imagine this happens:

Today, $1 = ₦1,500

Musa sells bread and collects ₦1,500 for bread worth $1.


Tomorrow, the exchange rate changes:

$1 = ₦1,700


Now the ₦1,500 Musa collected yesterday is no longer enough to buy the same amount of flour. Musa loses money.

After losing money several times, Musa says:

> "Since I buy flour in dollars, I will also sell my bread in dollars."



That is exactly what Dangote Refinery has done.

Before now

Dangote was buying much of its crude oil in US dollars.

But it was selling petrol, diesel and aviation fuel in naira.

When the naira became weaker against the dollar, the refinery could lose money.


What has changed?

Dangote now says:

> "If marketers want to buy petrol from us, they must pay in dollars."



So instead of saying:

> Petrol costs ₦900 per litre



they now say:

> Petrol costs $0.779 per litre.



The actual naira price will depend on the exchange rate.

For example:

If $1 = ₦1,600

Then:

$0.779 × ₦1,600 = about ₦1,246 per litre

If the dollar rises to ₦1,800:

$0.779 × ₦1,800 = about ₦1,402 per litre

So if the dollar goes up, petrol prices will likely go up too.

What does "ex-depot price" mean?

This is simply the price marketers pay at the refinery gate before adding:

Transportation costs

Storage costs

Filling station expenses

Their profit


So the pump price at filling stations will be higher than the refinery price.

Why did Dangote do this?

Because:

1. It buys much of its crude oil in dollars.


2. The government's naira-for-crude arrangement is supplying less crude than before.


3. The naira exchange rate changes frequently.


4. Selling in dollars protects the refinery from losing money due to exchange-rate changes.



What does this mean for ordinary Nigerians?

Fuel prices may become more closely tied to the dollar exchange rate.

If the naira becomes stronger, petrol prices may fall.

If the naira weakens, petrol prices may rise.

Marketers will need access to dollars to buy fuel from Dangote.


In one sentence Musa would understand:

> Dangote is saying: "Since I buy my raw materials in dollars, I will now sell my products in dollars too, so that exchange rate changes do not make me lose money."

It's like most of the children here don't get the reason why Dangote is doing what he is doing.

Another industry official explained that the refinery had received fewer crude cargoes under the naira-for-crude arrangement in recent months, making it commercially necessary to align product sales with the currency used for crude procurement.

“Dangote Refinery is receiving fewer naira-denominated crude cargoes from NNPCL than dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira.

The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars,” the source said.

There it is. If he didn't do what he was doing, the refinery would collapse within a few years, and we would be back to square one.

There is a reason why some things happen. Not everything is ripoff.

SultanYoung:
This is a Long read but it worth the time.

Imagine Musa owns a bakery.

To bake bread, Musa needs flour. The people selling him flour say:

> "Musa, from now on, you must pay for flour in US dollars, not in naira."



But Musa is selling his bread to customers in naira.

Now imagine this happens:

Today, $1 = ₦1,500

Musa sells bread and collects ₦1,500 for bread worth $1.


Tomorrow, the exchange rate changes:

$1 = ₦1,700


Now the ₦1,500 Musa collected yesterday is no longer enough to buy the same amount of flour. Musa loses money.

After losing money several times, Musa says:

> "Since I buy flour in dollars, I will also sell my bread in dollars."



That is exactly what Dangote Refinery has done.

Before now

Dangote was buying much of its crude oil in US dollars.

But it was selling petrol, diesel and aviation fuel in naira.

When the naira became weaker against the dollar, the refinery could lose money.


What has changed?

Dangote now says:

> "If marketers want to buy petrol from us, they must pay in dollars."



So instead of saying:

> Petrol costs ₦900 per litre



they now say:

> Petrol costs $0.779 per litre.



The actual naira price will depend on the exchange rate.

For example:

If $1 = ₦1,600

Then:

$0.779 × ₦1,600 = about ₦1,246 per litre

If the dollar rises to ₦1,800:

$0.779 × ₦1,800 = about ₦1,402 per litre

So if the dollar goes up, petrol prices will likely go up too.

What does "ex-depot price" mean?

This is simply the price marketers pay at the refinery gate before adding:

Transportation costs

Storage costs

Filling station expenses

Their profit


So the pump price at filling stations will be higher than the refinery price.

Why did Dangote do this?

Because:

1. It buys much of its crude oil in dollars.


2. The government's naira-for-crude arrangement is supplying less crude than before.


3. The naira exchange rate changes frequently.


4. Selling in dollars protects the refinery from losing money due to exchange-rate changes.



What does this mean for ordinary Nigerians?

Fuel prices may become more closely tied to the dollar exchange rate.

If the naira becomes stronger, petrol prices may fall.

If the naira weakens, petrol prices may rise.

Marketers will need access to dollars to buy fuel from Dangote.


In one sentence Musa would understand:

> Dangote is saying: "Since I buy my raw materials in dollars, I will now sell my products in dollars too, so that exchange rate changes do not make me lose money."

Please don't bother explaining. They will still call you a dangote shill, and a IMF propagandist now. Nigerians do not pay attention in their economics classes despite the subject being compulsory in secondary schools for decades now.

Honestly, people on this site somehow expect buisness people to be charitable. If they were they won't have a business in a few months..

kingsways:
Sale of products meant for local consumption in Nigeria in USD is unfair to Nigeria and Nigerians, and I urge both Nigerians and the government to reject it

1. Dangote got a good chunk of the fx used to build the refinery from Nigeria at official rates that was way below the market rate, and this is not a good way to repay that gesture

2. The new pricing policy breaches the regulations against dollarisation of the economy. It is illegal to price products produced in Nigeria and sold in Nigeria in USD

3. The policy will put the Naira under intense pressure as marketers will again begin sourcing USD to buy products

THIS POLICY IS BOTH WICKED AND ILLEGAL

Please don't be hasty to conclude, you sound very intelligent so I will pardon your ignorance here.
Read up about companies operating from a free zone areas, a free zone area is regarded as another country within a country so the government of Nigeria don't have any jurisdiction on how Dangote price it's products, Dangote is free to sell her products in USD or whatever currency he chooses because he operates from a FZE and Nigerian law on dollarization does not affect him.
Instead of blaming the actual culprits here which is the Nigerian government you Nigerians are blaming Dangote, should he own a business he cannot sustain? He do s not have sufficient dollars to import Crude oil from abroad cos he's selling in Naira, even NNPC is selling crude to him in Dollars.
What were you expecting then?
I don't know how the useless government cannot meet dangotes crude demand and sell to him in Naira instead of dollars .

SultanYoung:
This is a Long read but it worth the time.

Imagine Musa owns a bakery.

To bake bread, Musa needs flour. The people selling him flour say:

> "Musa, from now on, you must pay for flour in US dollars, not in naira."



But Musa is selling his bread to customers in naira.

Now imagine this happens:

Today, $1 = ₦1,500

Musa sells bread and collects ₦1,500 for bread worth $1.


Tomorrow, the exchange rate changes:

$1 = ₦1,700


Now the ₦1,500 Musa collected yesterday is no longer enough to buy the same amount of flour. Musa loses money.

After losing money several times, Musa says:

> "Since I buy flour in dollars, I will also sell my bread in dollars."



That is exactly what Dangote Refinery has done.

Before now

Dangote was buying much of its crude oil in US dollars.

But it was selling petrol, diesel and aviation fuel in naira.

When the naira became weaker against the dollar, the refinery could lose money.


What has changed?

Dangote now says:

> "If marketers want to buy petrol from us, they must pay in dollars."



So instead of saying:

> Petrol costs ₦900 per litre



they now say:

> Petrol costs $0.779 per litre.



The actual naira price will depend on the exchange rate.

For example:

If $1 = ₦1,600

Then:

$0.779 × ₦1,600 = about ₦1,246 per litre

If the dollar rises to ₦1,800:

$0.779 × ₦1,800 = about ₦1,402 per litre

So if the dollar goes up, petrol prices will likely go up too.

What does "ex-depot price" mean?

This is simply the price marketers pay at the refinery gate before adding:

Transportation costs

Storage costs

Filling station expenses

Their profit


So the pump price at filling stations will be higher than the refinery price.

Why did Dangote do this?

Because:

1. It buys much of its crude oil in dollars.


2. The government's naira-for-crude arrangement is supplying less crude than before.


3. The naira exchange rate changes frequently.


4. Selling in dollars protects the refinery from losing money due to exchange-rate changes.



What does this mean for ordinary Nigerians?

Fuel prices may become more closely tied to the dollar exchange rate.

If the naira becomes stronger, petrol prices may fall.

If the naira weakens, petrol prices may rise.

Marketers will need access to dollars to buy fuel from Dangote.


In one sentence Musa would understand:

> Dangote is saying: "Since I buy my raw materials in dollars, I will now sell my products in dollars too, so that exchange rate changes do not make me lose money."

This is baseless. There is no manufacturing sector that doesn't import. Do they sell their products in dollar?
Before dangote refinery, Government has been exporting crude for dollar. They are not paid in Naira. They offered dangote a white flag to make it easier for him to access the crude in Naira so that Nigerians can benefit from the refinery but be is now using this nice gesture as a right against the government. That is heartless.
Without government selling to dangote in Naira, dangote will still import crude oil to run his refinery. The import won't be in Naira. It would be in dollar.

What government should do like I have been saying is to impose tariffs on export and subsidize import. That is the only way to create balance in what dangote is doing. Let him prioritize export to get all the dollar he wants while the government gets their own share in tariffs charged in dollar too.
Government will have dollars from export and more dollars from tariffs if foreign countries finds his tariffs reflected products price attractive over other marketers in other countries.
If import is subsidized with the excess crude, Dangote will be the one to call for dialogue.

Government needs dangote. But dangote is showing that he cared about Government.
Dangote is making exports. It is in news. What stops him from buying crude in Dollar with the dollar he is earning from those exports. If he needs more dollar, he would have to buy it like other businesses and importers. Not to blackmail government.

When someone is showing you how greedy they are, you have to go an extra length to clip that wing. No one can be more greedy than the government. Absolutely no one.

lawani:
I am yet to understand how the currency used in buying feedstock affects any company to make them sell to marketers in dollars
Most breweries in the country import all or most of their feedstock and they don't sell to marketers in dollars
Most steel mills do the same.
All car assemblers do the same
Pharmaceutical companies do thesame
In China, India, USA etc it is the same way for many manufacturers.

Even Dangote cement do import spare parts with dollars and they pay some staff in dollars

The difference in what you have noted here is that all these companies import their raw materials from abroad. Dangote buys Crude in Nigeria from NNPC in dollars which makes zero sense. it is up to NNPC to change to naira denominated transaction before expecting a private citizen to do the same

SultanYoung:
sometimes just a 5 minutes research could have solve this all importers sell their product dollar equivalent to naira same with the dangote.

Yes but there is no need to announce it. There is something called legal tender in each country. Your naira selling price will be partly determined by your dollar expenses

Okichi:
The difference in what you have noted here is that all these companies import their raw materials from abroad. Dangote buys Crude in Nigeria from NNPC in dollars which makes zero sense. it is up to NNPC to change to naira denominated transaction before expecting a private citizen to do the same

I now clearly understand the problem. The naira is not yet fully floated. That is the problem. So the crude is significantly cheaper for someone buying from the FG in naira as they have to use the official rate to calculate. So it is clear now