₦airaland Forum

Tinubu being a very self centered non caring man will not call Dangote to order ,,crude is now 87 dollars so why the heck is Dangote increasing price

Lots of so called investors in Dangote refineries who are Nigerian politicians. Since no subsidy stealing again, they now rob Nigerians directly. Please explain to me how we sell our own resource to ourselves this high!
And no provision of any shock absorbers for the masses.

LabStores:
The greed of this man is becoming increasingly difficult to comprehend. He keeps increasing the prices of essential commodities to unreasonable levels, with little justification that makes sense to the ordinary Nigerian.

And yes, this is an argument against Dangote. We should stop pretending otherwise.

There is no convincing reason why Nigerians should be paying exorbitant prices for petrol in an oil-producing country. Nigeria is blessed with crude oil, yet Nigerians are made to pay through their noses for the refined product. There was a time in this country when a litre of table water could cost more than a litre of petrol. Now fuel has become one of the biggest burdens on households and businesses. And what happened to kerosene?

Look at countries with enormous oil reserves. Even nations facing war, sanctions, economic hardship and international pressure have managed to keep fuel considerably cheaper for their citizens. Iran, despite being under severe sanctions and geopolitical pressure, has heavily subsidised domestic fuel. Libya, despite years of instability and conflict, still maintains remarkably cheap fuel prices. Yet here we are, in an oil-producing country, paying increasingly ridiculous prices for petrol.

Then there is cement.

Nigeria has abundant limestone deposits and enormous cement production capacity. We are producing more cement than the domestic market can consume, and yet Nigerians continue to face some of the highest cement prices around. What makes it even more absurd is the reports of Nigerian-produced cement being sold more cheaply in neighbouring countries than it is available to Nigerians at home.

How does that make sense?

How can the country that provides the raw materials, labour and market for a product end up paying more for that product than neighbouring countries?

At some point, we have to stop calling everything "business" and start asking whether this is simply exploitation of a captive Nigerian market.

Dangote has every right to make money. But Nigerians also have every right to question a business model that continually pushes the prices of essential commodities upward while ordinary people struggle to survive.

What makes this even more disturbing is the silence and weakness of the Nigerian government. Instead of aggressively investigating pricing, production costs, market dominance and profit margins, the government seems perfectly comfortable allowing one of the country's most powerful businessmen to dictate prices in sectors that directly affect the lives of millions of Nigerians.

This is not about jealousy. It is not about hating successful Nigerians. And it certainly isn't about saying Dangote shouldn't make profits.

It is about asking why the Nigerian consumer always seems to be the one who gets screwed.

We have the crude oil. We have the limestone. We have the labour. We have the market. We have the natural resources.

Yet somehow, the Nigerian is still expected to pay more.

That is unacceptable.

And if Dangote's pricing is contributing to that situation, then Nigerians have every right to criticise Dangote, question his pricing and demand better value.

Businessmen are not above criticism simply because they are successful.

And governments certainly shouldn't be above criticism for allowing concentrated economic power to operate at the expense of millions of Nigerians.

Nigeria is not supposed to be a country where being rich means you can keep making essential goods more expensive and expect everyone else to simply shut up and pay.

No business is obliged to set its price at a level that favours you , nor is government obliged to set their prices for them, as that always ends in debt and tears and industries closing down

boxypane:
Lots of so called investors in Dangote refineries who are Nigerian politicians. Since no subsidy stealing again, they now rob Nigerians directly.

So you want Dangote refinery to run at a loss because evil investors.

My good fellow. Subsidy is why NNPC lost four refineries . Subsidy forces a refinery to operate at a net loss, with bad consequences

SalamRushdie:
Tinubu being a very self centered non caring man will not call Dangote to order ,,crude is now 87 dollars so why the heck is Dangote increasing price

Because your past leaders and even this current leadership did not develop a productive economy which is correlated with a stronger currency and by extension cheaper prices so to speak.

Instead they paid subsidy which created the debt we have that forced its removal.

If Tinubu restores subsidy it would further confirm my already established opinion that he is a bad leader

omoredia:
Hehe is an economic bandit. These terrorists people are very smart

So your average market trader and hawker and even tailor and so forth are economic bandits by your reasoning, eh?

buygala:
Election period is near, so politicians who invested, or have some other stake in the refinery need abundant returns to fuel their political machinery

Give us the names of these politicans that have investment in the refinery now..so that we can protest and shame them.

Kastonkastroll:
you guys should continue supporting rubbish...

So you support government setting prices for a business?

Have you guys learned anything from the collapse of the Soviet Union?

nairalanda1:
Because your past leaders and even this current leadership did not develop a productive economy which is correlated with a stronger currency and by extension cheaper prices so to speak.

Instead they paid subsidy which created the debt we have that forced its removal.

If Tinubu restores subsidy it would further confirm my already established opinion that he is a bad leader

This is not about subsidy , before the Iran war Dangote was selling fuel 725 when crude was 87 , today crude is back to 87 why is his fuel going up rather...these are questions that beckons the president to ask Dangote questions

Upright750:
The man no dey try at all. Quick to increase then crude increase but slow or never reduce when crude fall . No sign of mercy at all.

Well, his operational.costs are not dependent only on the price of crude

Also bringing back a subsidy now means government has to borrow at least ten trillion naira to fund it. I doubt any lender is willing to do that , and the CBN board would rather commit hara Kiri than do ways and means to provide the monies

SalamRushdie:
This is not about subsidy , before the Iran war Dangote was selling fuel 725 when crude was 87 , today crude is back to 87 why is his fuel going up rather...these are questions that beckons the president to ask Dangote questions

Well, his operational costs are not just dependent on the price of oil. That's a mistake most of us make.

For example, how much does it cost to maintain the refinery? Remember also that diesel which is used in most of the trucks to transport fuel is not under a subsidy nor is it cheap. Also , some waste that cannot be sold or repurposed is generated when crude is refined . All that adds up.

And if subsidy comes back the government is going to have to borrow to fund it.

Maybe you guys should have stopped Buhari from signing the PIA which ended subsidies .

1vandragon:
Nigeria is a very interesting country...

Using Naira rates, a litre of PMS in US is about #1450... on the average

In Nigeria, a litre of PMS is about #1300 on the average.

But in US, the minimum wage is about #1.7m p/m.

In Nigeria, minimum wage is #70k...

Yet, some people think it is OK to leave the masses to the vagaries and economics of the international market...

what is the correlation of oil prices to minimum wage?
is it dangote that pays minimum wage?
is it not what the government have economically that it can pay as minimum wage?
u go just open mouth waaaaaaaa

persius555:
All thise responsible for the TAM of tge four refineries should be arrested and incarcerated.

The problem with our refineries is that we were advised to remove subsidies in 1993 because paying a subsidy and paying maintenance costs for the same refineries was costing a lot of money and forcing the then government to borrow massively.

Nigeria said no, and as a result refinery did not undergo tam from 1994 to 2009. That's when they degraded massively.

Attempts at tam afterward were exercises in futility.

Had subsidy gone in 1993, the refineries would have made enough money to pay tam costs and upgrade costs and other costs .

careers360ng:
Subsidy will be back soon.

79% of Nigerians are living in poverty.

Naa, it is all rice and bean, Nigerian are not living in poverty, ask helinues and the rest, even ask Oga at the top or seyi.
If Nigerians are in poverty apc will not have the guts to seek another term.

yinkeys:
to pay for East African refinery
We’re in trouble

In 2012 you guys said no to subsidy removal

Had you said yes back then, Dangote would have had substantial competition

careers360ng:
Subsidy will be back soon.

79% of Nigerians are living in poverty.

Bringing back subsidy would entail massive borrowing . You won't want that

nedekid:
Naa, it is all rice and bean, Nigerian are not living in poverty, ask helinues and the rest, even ask Oga at the top or seyi.
If Nigerians are in poverty apc will not have the guts to seek another term.

Bringing back subsidy would break the terms of the PIA and would also entail massive borrowing to fund it.

1vandragon:
Nigeria is a very interesting country...

Using Naira rates, a litre of PMS in US is about #1450... on the average

In Nigeria, a litre of PMS is about #1300 on the average.

But in US, the minimum wage is about #1.7m p/m.

In Nigeria, minimum wage is #70k...

Yet, some people think it is OK to leave the masses to the vagaries and economics of the international market...

You're right bro...

Minimum wage in US is around #1.6million/month.
Minimum wage in UK is around #4.2million/month.

Also remember that while minimum wage in Nigeria is very low, cost of leaving, inflation and tax has gone very high. And the worst of it all is that basic amenities and security is near zero.


Nigeria is a wonderful country blessed with many cursed politicians.

For those of you castigating Dangote,you should stop. It's not his fault at all. Do you believe that he does not buy directly from the Federal Government?
He buys from some middleman company based in Europe or London at international prices. How do you expect him sell at local prices?

cenaman:
He owns the business so he do as he want.

NNPCL should go and rehabilitated their refineries.

Nigeria will be great again, It's matter of time. God is away straight

nairalanda1:
At the expense of tripling our debt

i disagree

cutefy:
You're right bro...

Minimum wage in US is around 1.6million/month.
Minimum wage in UK is around 4.2million/month.

Also remember that while minimum wage in Nigeria is very low, cost of leaving, inflation and tax has gone very high. And the worst of it all is that basic amenities and security is near zero.


Nigeria is a wonderful country blessed with many cursed politicians.

Cost of living and taxes in the USA are also very very high. Most of that money you are quoting would be eaten up by taxes and by student loans and other loans including mortgages.

Also rent in the USA is very exorbitant as well.

Finally, as a minimum wage earner in Nigeria , you are not likely to own a car. Minimum wage earners in the USA have to own cars which are very expensive and they spend more on fuel than the average Nigerian because on average working places are far from residential areas.

So your comparison does not hold up.

A relative of mine earns a decent salary in the USA. By the time rent, tax , loan repayment is taken out , she has less than half her salary left. She want to buy a car but she cannot buy brand new car because it would wipe her out financially . So she is eyeing second hand which is even quite expensive for her purse . And she spends a lot on fuel, probably more in a week than I spend in a month because she has to drive over one hour to her working place .

At least she can do that on one job. Many Nigerians over there have two or more jobs to do same

I thought very deeply about these 2 assertions and I think you are 100000000% right

He's a very calculative businessman

NewOrlleans:
Dangote doesn't love the masses neither is he coming to save us

cyberguy72:
i disagree

Here is the problem .

If Tinubu has to bring back subsidy tomorrow, he would have to borrow as there is no provision in the budget for it right now. Or your salaries won't get paid and that includes salaries for the big men and the poor men.

Also , the subsidy have to cover the frequent fluctuations in cost of fuel caused by rise and fall in crude oil prices . That means that at. some point during the year government borrowing would rise to cover such costs , or subsidy won't be paid for the month, leasing to fuel scarcity .


And then there is smuggling . Under subsidy, smuggling pushed up daily intake to 99 million liter per day. Not all smuggling is by tankers , it is also millions of youth carrying small jerrycans across the border at numerous points . Customs has less than 300000 people to man the border. Border is very large. That adds to government subsidy costs and pushes borrowing up.

See the whalaala. ? I don't support Tinubu and I want him out next year ,but when you read about this subsid thing , you go see how e be.

I used to love this guy ,but his recent tantrums have made me question his integrity. We really need petrol importers to stabilise this market. Market monopoly of petrol will wreck Nigeria

Next reduction will be by 50 naira then increase by 100 naira again.

1vandragon:
Nigeria is a very interesting country...

Using Naira rates, a litre of PMS in US is about #1450... on the average

In Nigeria, a litre of PMS is about #1300 on the average.

But in US, the minimum wage is about #1.7m p/m.

In Nigeria, minimum wage is #70k...

Yet, some people think it is OK to leave the masses to the vagaries and economics of the international market...

Accountant isonu wey call himself president is to blame for this shii.

What sane economist does that?

Not to worry, in a matter of months, Atiku will put him and this hyper-capitalist where they belong.

Enough of this scam!

nairalanda1:
Bringing back subsidy would entail massive borrowing . You won't want that

crude to naira deal wud reduce prices

He know it's a banana republic and anything goes.


Nigeria under APC and Tinubu is a fertile land for corruption, anomalies and hoard cage.

Rayjay45:
Accountant isonu wey call himself president is to blame for this shii.

What sane economist does that?

All the sane economists like Ngozi Okonjo iweala have supported subsidy removal.

Problem with subsidy is that government has to pay enough money to cover the operating costs and profit margins of the petroleum industry, which is difficult to do and would lead to borrowing and debt because these costs can pass any money government allocates for subsidy

cyberguy72:
crude to naira deal wud reduce prices

Been tried in the 1980 and more recently. Did not work.