CodeTemplar:
Stop talking like a quota system mind. Forex is just the part of national wealth maintained in foreign currencies to facilitate business with other economies. Forex cannot be saved in that sense but channelled to other things.

Ignoramus.

So when significant amount of forex is saved daily thereby reducing demand for USD, it has no effect on the exchange rate?

Sit down.

alexola20:
Dangote is a wicked front to many political and economic saboteurs in Nigeria.

The refinery is not solely owned by Dangote but conglomerates of thieves.

I wish people can just rise up one day and show these thieves that we are not all stupid.

Kill them and their family,no rat will be spared in the houses.

Boko Haram mentality...
Those who cannot build find it easy to destroy. SMH
>

Igboarecriminal:
you drunk early this morning or hangover. Electric car will not be widely used in Africa until 2400. Everything is Europe, America with you people

Does Nigeria produce car engine?

I'm so excited that the era of fuel is coming to an end just like coal

Emary:
So the plan is to sell this man our crude at cheap rates, only for him to resell the refined products to us at even higher rates than importers currently do? Real monopoly. Well, at least after this, we should hear no more about subsidy.

Not correct

SouthSouth1914:
The north has really islamize Nigeria. Every well meaning Nigerians should come out and fight this injustice! A group of unscrupulous elements should not monopolize our lives!!

This is not Islam my friend, forget d fact most may pray five times daily. These people have an ethnic agenda they take as their first priority before islam

Honestly human beings cannot be satisfied more to an African Nigerian, the Chinese are investing heavily in Nigeria infrastructure, we are say they mortgaging our sovereignty to China, now our own very Dangote is doing his best for our country instead of being grateful we want to start smear campaign against him.

chatinent:


The plan is to sell to themselves at cheap rates so they can resell to us, and export at a good rate.


The name Dangote is a haven for all political fraud.


They make up Dangote. Dangote is just a name.

jimi4us:


Does Nigeria produce car engine?

I'm so excited that the era of fuel is coming to an end just like coal

expect China to produce it, if there's market for it. Also Nigeria can produce car engine

Inspirelove:
Honestly human beings cannot be satisfied more to an African Nigerian, the Chinese are investing heavily in Nigeria infrastructure, we are say they mortgaging our sovereignty to China, now our own very Dangote is doing his best for our country instead of being grateful we want to start smear campaign against him.

When you start investigating and stop believing the news, then, you'll understand.

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

Stop deceiving yourself.

Source :
https://thecable.ng/zainab-ahmed-dangote-refinery-may-not-significantly-reduce-petrol-price-in-nigeria/amp

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.




This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

So what makes him to sell his cement bags higher prices like others, after all he produces it here and we have limestone in the country. This is Nigeria.

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

oga dangote has never been rational,he has always been using his advantage to rip Nigerians off,his prices are usually not friendly,despite the concessions he usually get from our common patrimony,this will not be different,we ve seen it in cement,sugar,his product will not sell less than 200naira/litre

GboyegaD:
Hmmm....when will they start selling gas to the Gencos and Discos in Naira?

Gas pricing in is calculated in dollars, but sold in Naira in Nigeria (and Discos do not buy gas)...
It will be the SAME for crude oil. Calculated according to market prices but sold in Nigeria in Naira.
>

You are quite naive with some of your assertions.

I have worked in the downstream sector of the petroleum industry. Most of what you refer to as landing costs are usually inflated and all independent marketers have a common understanding regarding this.

The scenario you paint of other countries looking for Nigerian naira to trade for our petroleum products is laughable. When that time comes, you will discover that it is the gatekeepers (those in charge of implementing said policy) that will insist on other forms of currency. You seem to discard precedence, the cement industry being a very good example of how localised production does not translate to lower prices.

My problem with the average Nigerians is how we fawn at and are fixated upon projects such as a refinery - 20th century engineering development. So you are claiming that this refinery will bail the entire country out of years upon years of its collective stupidity and gross incompetence. We probably need 10 refineries of this particular size that not only guarantee our energy needs but also help our balance of trade and our currency. To the best of my knowledge, only BUA and Dangote are building refineries of such a capacity, others are smaller in size and do not make a huge impact upon overall demand. Last I checked, Dangote was a capitalist not a socialist, you really think he will sell petroleum products for less when he can sell for more Is his cement business not the best of indicators of what he will do when said refinery starts working Nigerians so love a fairytale ending when in reality it is never so simple.

One thing you are removing from this overall equation is the human element. Humans through collusion can cause even the most foolproof systems to fail. And Nigerians have shown consistently that they do not want development. On the surface, it appears to be a good plan but in a country such as Nigeria, who knows what tomorrow holds.

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

BigSarah:
Why is this government making it seem like Dangote is a saviour or something, all I know is they're aligning to stick it up the rectum of the already worn out economy.

He is indeed the saviour of our economy...

Read my write up months back: how Dangote will rescue Nigeria'

IDnoble1:

So what makes him to sell cements higher price like others at least he produces it here and we have limestone in the country. This is Nigeria.

Mostly overhead costs due to poor infrastructure.

When we start transporting cement by rail for instance, you can expect prices to fall. Same with stable power supply that will drive down costs and also reflect in cheaper prices.

snoopanddre:
This is not Islam my friend, forget d fact most may pray five times daily. These people have an ethnic agenda they take as their first priority before islam

Thank you for educating him

slawormiir:
Damnnn niggarrrr
Isoright......

Lets see how it goes

Baba I don message your email tire. Check your inbox

Thelife:


Smile, other complain get the same Favour as dangote? are you for real, please just stop lieing.

1. is tax system, after dangote venture into cement industry, the government increase the tax knowing fully well that they are the one that make up dangote and the money he paid as tax is still going back to him, then the tax frustrated the other cement industry and they have no chose than to increase there selling price to meet up.


2. did you know that it only dangote trucks that permitted to carry weight load that's greater than the required maximum weight load specify in Nigeria law?


3. when the border was closed, show us which of those industry was given the grace of importation apart from dangote


seem you people sees us as fool.

Dangote works because his company is properly run...as do Lafarge and BUA

kayjay69:
You are quite naive with some of your assertions.

I have worked in the downstream sector of the petroleum industry. Most of what you refer to as landing costs are usually inflated and all independent marketers have a common understanding regarding this.

The scenario you paint of other countries looking for Nigerian naira to trade for our petroleum products is laughable. When that time comes, you will discover that it is the gatekeepers (those in charge of implementing said policy) that will insist on other forms of currency. You seem to discard precedence, the cement industry being a very good example of how localised production does not translate to lower prices.

My problem is us average Nigerians is how we fawn at and are fixated upon stuff such as a 20th century engineering development such as a refinery. So you are claiming that this refinery will bail the entire country out of years upon years of its collective stupidity and gross incompetence. We probably need 10 refineries of this particular size that not only guarantee our energy needs but also help our balance of trade and our currency. To the best of my knowledge, only BUA and Dangote are building refineries.

One thing you are removing from this overall equation is the human element. Humans through collusion can cause even the most foolproof systems to fail. And Nigerians have shown consistently that they do not want development. On the surface, it appears to be a good plan but in a country such as Nigeria, who knows what tomorrow holds.

What a display of grand ignorance.

So you claim to be in the downstream sector, even with the nerve to label someone naive, yet are totally ignorant, clueless and blank of the fact that Nigeria's daily demand is 442,000 bpd, while Dangotes refining capacity is 650,000 bpd meaning he not only can satisfy our national petroleum needs, but even has enough left for exports, so I wonder what planet you pulled your 10 refineries theory from. If to the best of your knowledge (your words), you're aware of only 2 private refineries in Nigeria, then it truly shows the perimeters and boundaries of that knowledge.

Excerpts from the IMF.

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

Well said!!! But again it is a capitalist system and the monopoly he is going to enjoy for the time being could drive the price. Ideally, we should have a cheaper product from him but nothing seems sensible in the country. Look at rice, the government banned importation of it to expand and encourage local productions. What do we have now with the price of rice?? We need price gauging control system.

surgical:
oga dangote has never been rational,he has always been using his advantage to rip Nigerians off,his prices are usually not friendly,despite the concessions he usually get from our common patrimony,this will not be different,we ve seen it in cement,sugar,his product will not sell less than 200naira/litre

As opposed to the “cheap” fuel are you currently getting from the other (government) refineries...oh wait, there’s none!

Even though I would doubt it because landing costs will be eliminated, if nonetheless Dangote decides to sell it for N200/liter (ie, less than 50 cents), it’s because that’s what the market rates should be and that’s why he remains in business while the government refineries lost N154 billion in 2018 (according to the NNPC’s last published audited financial statements) while producing almost ZERO refined fuel products.

The problem with most Nigerians is that they are deluded into thinking they are getting (and are even entitled as a birthright to) “cheap” fuel, but everything has a COST (one way or another). Accordingly, the trillions of Naira that the federal government spends to keep imported fuel “cheap” in Nigeria is BIGGER than the budgets for each of education, healthcare, public/affordable housing agriculture, etc.

Meanwhile, the stark irony of the dumb “cheap” fuel policy is that pricing of the products that most affect ordinary Nigerians are all DEREGULATED - kerosene used as household fuel, diesel used for long haul transportation (including of foods and goods), and aviation fuel. Meanwhile, the BIGGEST owners of ordinary cars in Nigeria are the federal and state governments. In effect, they’re subsidizing themselves!
>

Well, when the north and south go there separate ways, I know the property me and my boys will take over in the south

seunmsg:


Subsidy has been removed already so that’s no longer an issue

Subsidy hasn't been removed. There is, and always has been a subsidy.

The only time subsidy was removed...is in 2015, when government raised fuel prices from N87 to N145, when landing costs was N132. That meant that government no longer paid a 'subsidy'...till the landing cost rose above N150, when subsidy payments were resumed, till it became unsuistainable again...hence the price icnrease to N162

So long as the price of fuel is set by NNPC, there is a subsidy

. However, allowing Dangote to fix prices as he wants should never be allowed. There must still be a price fixing regulation in place. The downstream sector is too critical to be allowed to exist without government regulation. Dangote refinery will be a monopoly once it start production so government must ensure at all times that consumers are protected.

And at the end of the day you will

1.Drive off investors in new refineries since they can no longer make profits refining and selling fuel. Fact...of the ten new refineries coming up, most of them are not refining petrol because petrol is still subject to price fixing. It is the same reason why most private entities licensed to refine pterol in Nigeria cannot refine petrol because it isn't going to be profitable under a price fixing regimen.

2.Make it difficult for NNPC to repair and upgrade existing refineries, and if they manage to find the cash to upgrade and repair existing refineries, to keep them in good shape over time since they cannot make a profit to do so..plus they cannot make a profit to even build new refineries.

Infact, the main reason why we have bad refineries is because for years, NNPC hasn't been able to run its refineries profitably. As a result, all the refineries failed over time.

Plus, price fixing is not very good economics. Would you accept government fixing your price if you ran your business....? Would you.?You would be running at a loss...and engaging in sharp practices like selling on the black market , engineering scarcities of the goods you sell, and smuggling to keep afloat.

3.And price fixing entails paying subsides . Otherwise, the whole downstream sector is going to run at a very very serious loss...and subsides payment can only cover so much...plus it isn't sustainable.

QuotaSystem:


Mostly overhead costs due to poor infrastructure.

When we start transporting cement by rail for instance, you can expect prices to fall. Same with stable power supply that will drive down costs and also reflect in cheaper prices.

Okay,
So is the (overhead costs) factor not going to affect his oil refining?

tnerro1:
Well, when the north and south go there separate ways, I know the property me and my boys will take over in the south

And then when the South-East, the South-West and the South-South go their “separate ways” the Omo-Onile know which property they’ll be taking over...
>

QuotaSystem:
Dangote's refinery will definitely be a game changer for the Nigerian economy.

What a genius strategy. Imagine a scenario where other African countries would be looking for Nigerian Naira in order to purchase Nigerian Petroleum Products. It would increase the organic demand for our currency thereby boosting its value significantly.



This does not make sense. There is no way Dangote's petrol would be more expensive because not only has the issue of landing cost been eliminated since we're no longer importing, but the market has also been deregulated (which is why we suffer price hikes whenever price of crude or USD rises).

You're right about elimination of subsidy which will save us significant amounts of money, but even greater benefits would come from saving millions of USD daily that would have been wasted to import refined petrol (a whopping 41% of our forex saved); further boosting our foreign reserves and the value of the Naira. The multiplier benefits from job creation and development of allied industries to support the refinery and petrochemical plant are better imagined.

Finally, the disgraceful economic anomaly wherein the 6th largest oil producer in the world is one of the biggest importers of petrol from less endowed countries, and continuously suffers whenever crude prices rise instead of enjoying the largesse like fellow oil producers, will finally come to an end thanks to Dangote's refinery. I wish him the best and I'm excited for Nigeria.

Thanks very much sir for breaking it down to my understanding. God blesses u real good. I pray the product sale reall cheap when the refinery starts operations.

9jaRealist:


Subsidies have been removed (allegedly).
Dangote will buy crude oil and sell products at market prices.
>

Subsides haven't been removed.

Right now, landing costs for fuel are above N180 per liter. Pump price cost is N162 per liter. The government pays the difference...a subsidy

If there was no subsidy, then we would have been paying N300 or more for fuel...since government would no longer be controlling the price...leaving marketers free to pay for importing fuel...with dollars they source for themselves...not the current arrangement where NNPC improts, sells to depots at a reduced price...and bears subsidy costs from its pocket...rendering it difficult for them to pay for things like ...repairing refineries.

Igboarecriminal:
Fantastic news indeed. There will be no need for forex conversion any longer. Now he can export to other African countries and bring in the forex.
That is in addition to the savings to be made from discontinuance of fuel importation. Fuel import was the number 1 forex guzzler.

Watch how IPOB terrorist and some brown roof republic will Insult Dangote because he is muslim from North. They will tell us how lamidi cownu loaned money to Dangote's ancestors.

Who told you he will bring in the forex.

Emary:
So the plan is to sell this man our crude at cheap rates, only for him to resell the refined products to us at even higher rates than importers currently do? Real monopoly. Well, at least after this, we should hear no more about subsidy.

Shut up dumb bitch. Who asked your father to be poor
This refinery will help Nigerian economy

9jaRealist:


And then when the South-East, the South-West and the South-South go their “separate ways” the Omo-Onile know which property they’ll be taking over...
>

Bros, am from the south south, if I no give you crude oil, dem go use that refinery take do hotel ooooo