ahiboilandgas:
i was attending an international oil and gas expo...dapo (hyden oil) governor of ogun told us from his research when crude was 60 dollars ...dangote will produce at 165 naira ex depot price ..must cost of production is same for must refinery....dangote will make saving on the cost of international shipping and port charges which amount to 14 naira ..compare to his rival refinery in india ..the india refinery has advantage of years of operations...probabaly the investments has paid back with no interest to pay ....they can land pms as same price in Nigeria and compet with Dangote

Dangote has a lot of advantages which might make his cost of production less than that because he won't save expenses only on logistics.
1)Economies of scale.We are talking about the largest single owned refinery in the world here so cost of production of dangote and India can never be the same.
2)logistics cost he is going to save by not importing like you say,money for shipping and custom.
3)Labour;He is going to get a lot of cheaper labour than western counterparts.
4)foreign exchange difference in expenses is going to save him a lot of money as almost all of his expenses is going to be done in naira.
There are rumours and talks that dangote is even going to buy crude in naira sef as we speak.I trust my sources.

But dangote being a capitalist will want to take advantage of subsidy to hike pricing so that government will still pay him that subsidy money through NNPC buying from him at high price.

The only thing they can do to shock him and make him sell according to how he produce is still allow import open and modular refineries too so that his true cost of production and selling price will be exposed.
Else they are breeding another fraud and one man enrichment in the making.

In the Global context Nigeria bank are best described as community banks they cant produce finance for oil exploration,big refinaeries, big vessel acquisition..loan term mortgages etc ....they provide money to import and sell and

Pay back or collect commission or interest on govt securities....This are not banks

ahiboilandgas:
Nigeria bank are too poor to finance any serious bussiness like industrialization...they dont have the long term funds and capacity...they are mere commission centres and sms charges ... they can finance a meduim size fertilizer plant work 3 bn dollar for 5 years ....they can provide finance to deep off shore explorations or 5bn dollars stell rolling mills .....this the problem soludu tried to tackle....bank of southafrica is richer than al the bank in Nigeria B4 consolidation

I said this in my last post,industrialisation must not be billions and billions of dollars,no.
I am talking 5bn naira($10m) industries springing up in large numbers all over the place due to 200m people looking for cheaper alternative of goods.
2,000 units of this kind of companies is better than 3 of those billion dollar companies you keep talking about that banks can't finance.
Also,these importers do not need your loan as they have acquired a lot of money from their import businesses.
All they will start doing is merging and opening industries.
This was China's model.

Zenith bank leading bank in Nigeria invested over 700bn naira in treasury bills ....over 60 percent of their profits come from interest on govt securities,sms charges,short term consumers loans .....no serious business....Nigeria banks ....mobilze deposits at 4 percents place in treasury bills at 13 percent (omo auctions)...then add sms charges sms commission..do Agm and share money.....come let turn the oranges im benue to an 100m dollars juice exporting company...in a 7 years plan....they do dissapper

Theconglomerate:
I said this in my last post,industrialisation must not be billions and billions of dollars,no.
I am talking 5bn naira($10m) industries springing up in large numbers all over the place due to 200m people looking for cheaper alternative of goods.
2,000 units of this kind of companies is better than 3 of those billion dollar companies you keep talking about that banks can't finance.
Also,these importers do not need your loan as they have acquired a lot of money from their import businesses.
All they will start doing is merging and opening industries.
This was China's model.

how many Nigeria banks that can give 5bn naira for medium scale companies? Ask u self ...they rather loan to kogi state at 27 percent and collect it with irrevocable payments orders...or loan to 10000 civil servants at 250k each at 27 percents paid in 24 months and zero monitorium

If I was a bank manager also, I will not also give loan. Not in a country where people see loan as their own share of the national cake and not something they are supposed to repay.

ahiboilandgas:
how many Nigeria banks that can give 5bn naira for medium scale companies? Ask u self ...they rather loan to kogi state at 27 percent and collect it with irrevocable payments orders...or loan to 10000 civil servants at 250k each at 27 percents paid in 24 months and zero monitorium

ahiboilandgas:
Zenith bank leading bank in Nigeria invested over 700bn naira in treasury bills ....over 60 percent of their profits come from interest on govt securities,sms charges,short term consumers loans .....no serious business....Nigeria banks ....mobilze deposits at 4 percents place in treasury bills at 13 percent (omo auctions)...then add sms charges sms commission..do Agm and share money.....come let turn the oranges im benue to an 100m dollars juice exporting company...in a 7 years plan....they do dissapper

There is no serious business for them to invest in because Niigeria is subsidising imported goods by supplying unrealistic cheap foreign exchange na.
I am telling you again,we as a people don't even need bank loan to setup a factory that already has a market that needs its product due to necessity and being a cheaper alternative.
Do you know who Josien Holdings is?
So you think if that his MOET and Hennessy that he imports and juice becomes so expensive for Nigerians to buy so much so that people no longer buy but want cheaper options,Josien will want to go to bank to take loan to set up a factory?
He cannot do it now because imports is cheap and have a lot of variety and he is not sure his product will sell.
But if imports get too expensive so much so that importers are finding it difficult to import,Josien can singlehandedly build that $100m multipurpose factory with little borrowing.
Don't underestimate Nigerians.
I know very well what I am saying.

ojesymsym:
If I was a bank manager also, I will not also give loan. Not in a country where people see loan as their own share of the national cake and not something they are supposed to repay.

falcon securities was given over 132bn naira by banks to buy shares...all the money gone....

ahiboilandgas:
how many Nigeria banks that can give 5bn naira for medium scale companies? Ask u self ...they rather loan to kogi state at 27 percent and collect it with irrevocable payments orders...or loan to 10000 civil servants at 250k each at 27 percents paid in 24 months and zero monitorium

Oga we no need loan of five billion naira from bank to manufacture,that is what I am saying.
Right now it's only daredevils that are manufacturing.
Others want to and have the money for it but they are afraid because imports is taking a huge chunk of the market.
Eliminate import and you will know that there are a lot of people that have 5bn naira.
I am not guessing but giving you facts.

ahiboilandgas:
how many Nigeria banks that can give 5bn naira for medium scale companies? Ask u self ...they rather loan to kogi state at 27 percent and collect it with irrevocable payments orders...or loan to 10000 civil servants at 250k each at 27 percents paid in 24 months and zero monitorium

They do, you can't start from no where and ask for a loan of N5 billion.

You need a track record and character. A typical annual report will show different sectors where the bank loaned money.

Your cash flow, profitability, market share, turnover, knowledge of the business and managerial competence will determine the size of loans to be granted

Theconglomerate:
There is no serious business for them to invest in because Niigeria is subsidising imported goods by supplying unrealistic cheap foreign exchange na.
I am telling you again,we as a people don't even need bank loan to setup a factory that already has a market that needs its product due to necessity and being a cheaper alternative.
Do you know who Josien Holdings is?
So you think if that his MOET and Hennessy that he imports and juice becomes so expensive for Nigerians to buy so much so that people no longer buy but want cheaper options,Josien will want to go to bank to take loan to set up a factory?
He cannot do it now because imports is cheap and have a lot of variety and he is not sure his product will sell.
But if imports get too expensive so much so that importers are finding it difficult to import,Josien can singlehandedly build that $100m multipurpose factory with little borrowing.
Don't underestimate Nigerians.
I know very well what I am saying.

if he brings out 100m dollars personal funds to build a factory...tell me he not a business man but a money bags or from corrupts source....

Besides No bank will give you loan to start manufacturing If you don't have history and good portfolio.
So these people know from day 1 that it's their money they will use.

ahiboilandgas:
if he brings out 100m dollars personal funds to build a factory...tell me he not a business man but a money bags or from corrupts source....

Go and do your research on who Joe Ogbebor Aisien is and come back and say this thing you are saying.
Some importers hold mad funds oo.
He is not going to dip his hands in his pocket and bring $100m but will divert funds from JHL holdings to his factory as JHL is no longer profitable due to importation crash.
That is what I am saying.

emmanuelewumi:



They do, you can't start from no where and ask for a loan of N5 billion.

You need a track record and character. A typical annual report will show different sectors where the bank loaned money.

Your cash flow, profitability, market share, turnover, knowledge of the business and managerial competence will determine the size of loans to be granted

i wish to know any company (new )that was granted 5bn naira by a Nigeria bank to start operations this year ...not cbn grants

Theconglomerate:
Go and do your research on who Joe Ogbebor Aisien is and come back and say this thing you are saying.
Some importers hold mad funds oo.
He is not going to dip his hands in his pocket and bring $100m but will divert funds from JHL holdings to his factory as JHL is no longer profitable due to importation crash.
That is what I am saying.

no need the wealthy Nigerians are on forbe list ...verifable by their holdings on Nse

ahiboilandgas:
falcon securities was given over 132bn naira by banks to buy shares...all the money gone....

Ololo was used by someone banks to manipulate their share price and make profits from the manipulation.

Barth Ebong the former CEO of Union Bank also approached Ololo to assist him manage and defend the stock price of Union Bank , when the ambitious young guys managing Access Bank wanted a hostile takeover of Union Bank by mopping up the shares on the floor of the exchange.

If the foundation is faulty, there is nothing the righteous can do. That was what happened to Ololo and his over N100 billion debts

ahiboilandgas:
no need the wealthy Nigerians are on forbe list ...verifable by their holdings on Nse

So any Nigerian that his company is not public is poor or can't afford $100m?
Can you believe this logic?
Joe is dead btw

This scenario is confusing to me sir

emmanuelewumi:



Ololo was used by someone banks to manipulate their share price and make profits from the manipulation.

Barth Ebong the former CEO of Union Bank also approached Ololo to assist him manage and defend the stock price of Union Bank , when the ambitious young guys managing Access Bank wanted a hostile takeover of Union Bank by mopping up the shares on the floor of the exchange.

If the foundation is faulty, there is nothing the righteous can do. That was what happened to Ololo and his over N100 billion debts

Theconglomerate:
So any Nigerian that his company is not public is poor or can't afford $100m?
Can you believe this logic?
Joe is dead btw

100m dollars is not 100m naira ...oh...famfa oil is not on the nse ....she worth 1.2bn dollars ....u want me to believe a win distributors has 100m dollars ..Nigeria breweries might not have 100m dollars cash ....talkless of spirits distributor

ahiboilandgas:
i wish to know any company (new )that was granted 5bn naira by a Nigeria bank to start operations this year ...not cbn grants

It is a gamble when you are starting a business with a loan of N5 billion, and you don't have a verifiable track record.


About 10 years ago, a school owner in Lagos got a loan of N1 billion from a bank which he has paid back. Currently has a private University on the outskirts of Ikorodu Lagos

You can't come from no where and ask for a loan of even N5 million

.

Louis Vuitton Moet Hennessy(LVMH) has its largest market for champagne worldwide in Nigeria and someone that has been their sole distributor for Nigeria for several years can't afford $100m because he isn't poor enough to be begging for capital on NSE and ahiboilandgas has concluded he can't afford the money because NSE says otherwise?
This is ridiculous I swear.

ojesymsym:
This scenario is confusing to me sir

You will understand when you start following events in corporate Nigeria.

Ololo is the owner of Falcons

ahiboilandgas:
100m dollars is not 100m naira ...oh...

You think I don't know this?

You sure say non be you be this Louis Vuitton Moet Hennessy's sole distributor??

Theconglomerate:
Louis Vuitton Moet Hennessy(LVMH) has its largest market for champagne worldwide in Nigeria and someone that has been their sole distributor for Nigeria for several years can't afford $100m because he isn't poor enough to be begging for capital on NSE and ahiboilandgas has concluded he can't afford the money because NSE says otherwise?
This is ridiculous I swear.

Theconglomerate:
Louis Vuitton Moet Hennessy(LVMH) has its largest market for champagne worldwide in Nigeria and someone that has been their sole distributor for Nigeria for several years can't afford $100m because he isn't poor enough to be begging for capital on NSE and ahiboilandgas has concluded he can't afford the money because NSE says otherwise?
This is ridiculous I swear.

oga forte oil was sold for 200m dollars by otedola....

Theconglomerate:
See what speculation can cause.
Naira is currently appreciating today as we speak at this rate not because of anything but just because there are rumours circulating that Buhari is going to open borders and interstate today by 7pm.
How does this relate to fx?
Remember the CBN led by Emefiele said the moment the nation is open to international air travel,that it will provide fx liquidity for the people that need it for their various reasons which I know deep down Emefiele might be conducting a social experiment,which apparently is already yielding results.
No aboki is buying or will price your dollar very low as we speak because of panic.
If Buhari makes no announcement as speculated today,by wednesday expect pricing to start creeping up again.
This is how risky hedging with fx and foreign denominated investments can be in a volatile economy as Nigeria.
He who has ears....

The same Emefiele that was begging industrialists not to patronise BDC? Why would you use moral suasion where there's strong demand and weak supply? There've been no cash interventions and he expected them to sit with hands folded?

This thing requires confidence. If people aren't confident that the CBN has the capacity to supply FX, they'll go elsewhere. Why did they have to wait this long?

ahiboilandgas:
oga forte oil was sold for 200m dollars by otedola....

So only oil and gas players can afford $100m?

Theconglomerate:
You think I don't know this?

i thinks so...100m dollars can cause war in africa countries...small African countries dont have 100m dollars as reserve

ahiboilandgas:
oga forte oil was sold for 200m dollars by otedola....

He paid the CEO a salary of N150 million per annum, excluding certain benefits and allowances

Theconglomerate:
So only oil and gas players can afford $100m?

u wan compared forte oil with 500 filling stations and tank farm and vessel to selling whiskey and wine as distributor......get serious man...

emmanuelewumi:


He paid the CEO a salary of N150 million per annum, excluding certain benefits and allowances

how much the 100m dollars unkown win seller they pay him own ceo......100m dollars can never be hidden ...