₦airaland Forum

COMPAQ:
You've used monkey 3 or 4times. You really must be a child. I won't descend to your level.

That bag of cement you posted there is 80pounds, which is 36kg. What we sell in Nigeria is 50kg. At 50k equivalent by simple proration that would be $5 which is either N2k or N2.35k depending on which exchange rate.

deeptechcool:
Can you please use this analysis to explain why Nigerians buy cement at the highest rate in the world despite having limestone in abundance?
I want to learn.

QuotaSystem:
Mostly due to overhead costs due to poor infrastructure, compared to other parts of the world.

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.

TrueNigerian300:
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.

Godarz:
Great explanation here.

I would like to emphasize the subsidy removal aspect though...as it means fuel production at home becomes profitable...meaning more refineries to compete with Dangote which eventually means lower petrol prices by competition...and ability to export petrol even.

kayjay69:
Forget bpd, do Nigerians consume crude oil, what is Nigeria's total consumption of refined products.

I await your answer.

Plus dangote is on rumoured not to be interested in selling to the Nigerian market but to markets in other African countries. And would I blame him given the regulatory sh_itshow Nigeria is and the uncertainty in government policy.

IDnoble1:
Okay,
So is the (overhead costs) factor not going to affect his oil refining?

Evii:
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.

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.

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.

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.

9jaRealist:
LaFarge is a foreign company. In fact, it is the world’s BIGGEST producer of cement. How much does LaFarge sell its cement in Nigeria? Is it cheaper than Dangote or BUA cement? If you think that imported cement will still cost Nigerians the same as it cost when the Naira was N118 or N168 to the US Dollar (let’s not even go as far back to our parents time, when the N1 was almost $2), when the Naira is now officially N410 to the US Dollar (and unofficially about N500/$1), then I am afraid you are being more than a tad delusional - and that’s even before you add shipping costs (including the high insurance rates because of the piracy-infested Gulf of Guinea shipping lanes).

Most important, though, is that the local production of cement in Nigeria by Dangote and BUA creates TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS (direct and indirect) along the entire value chain, thereby creating wealth locally in the Nigerian economy and generating tax revenues (both corporate and income taxes) for Nigerian federal and state governments, which revenue should ideally (if the politicians are not stealing or embezzling it) be invested in public infrastructure, schools, hospitals and transportation, among other things. Meanwhile, guess who gets the majority of those JOBS being created in the local economy - commoners!
>

TheWrita:
I don't understand the headline and I'm not going to read the rest of this story to avoid being irritated this Sunday morning
FG is planning to do what?sell oil?
Isn't dangote refinery ...drilling for oil?
I'm sure some people are already rushing the comment section to defend and explain rubbish.
You guys are too dumb to understand that the country you THINK you are a citizen of ..actually belongs to a few old men.
They are just sharing things among themselves.
Sad!

Thelife:
and the commoner suffer as usual, I saw your comment about how dangote and bua help us stop importing cement. seriously your dangote and bua should have just leave us to keep importing our cement because way back before they venture into it, average Nigerian DA afford it without stress but after they venture into it, what happen?


it occur to me that the idea of producing our own goods in Nigerian is not because they want the citizens to buy at cheaper rate but it because they want to keep extorting the average Nigerian and then enriching the elite.


Shame on Nigeria.

cugardmalino:
Nigeria has 5 not working refinaries and nobody is saying anything. We all are waiting for that one 1 man. Open your eyes and see that this country will soon be on motgage to Dangote. Also no forget say the 5 not working eats a whopping N10b monthly for maintenance. Na Dangote go soon buy all the 5 of them for N100. E no go better for our leaders

Keemsleek005:
God bless you and it's not going to be only dangote but all the refineries. I and someone still talked on these issue onbthese forum, when he said he doesnt trust d goverment on which currency, crude will be sold and i told him i pray it's in naira.
Selling in dollars within nigeria will finally kill the economy and fuel willl still be expensive cos of d exchange rate. Let the game begin, these the time nigerians will enjoy and buy pms at lower rate even dpk and Ago will go down too. Very zine decision from the goverment.

TheWrita:
You are really QUOTA SYSTEM!
A complete sheep

limeta:
Sorry kid

Mikecold:
Is it governors that are issuing the no trade or the unions.

Shey lalung is the farmer that harvest the products

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?

cocolacec:
Now, the North has just demonstrated that they are the food basket of the Nation and that the South may probably not survive without their food and meat. This action of the North is a wake up call to the South especially Southwest.

It is now time for South West to develop a sustainable Agricultural policy that will make the zone independent of other zones food-wise. The Southwest has good arable lands, green vegetation and enough rain to farm and feed itself and also sell to the North.

The Southwest is the most blessed and endowed Region in Nigeria in terms of everything. I am aware that yams are usually transported to the North from May to August of every year from Southwest when Northern yam has not yet matured. I am aware that vegetables are in abundance and fruits are plentiful in South West. Tomatoes and Pepper can germinate and grow anywhere and if conserted effort is made, Onions can be grown in commercial quantities. The Southwest should also go back to goat rearing like we used to do and stop relying on Cows from up North at all time. The Southwest has enough natural water for fish farming and we can also develop our snail farming to commercial quantities.

Let everyone go back to farm no matter how little while government should provide enabling environment for farming to thrive by providing security to ensure Fulani Herdsmen do not kidnapp again or lead their cattle and cow to eat up farms. Let us go back to dry season farming (Fadama) through irrigation as this will make us able to feed ourselves all the year round.
The action of the Northern elements in charge of this "no movement of food to the South" should not be seen as a bad thing to serve as punishment on Southwest but as a wake up call because if we do not learnt from this, the future events may have dire consequences on us in the Southwest.

I wish to humbly call on all the 6 Governors (or is it 7 because the Northern Task Force has excised and exited Kwara State from the North with their latest action at Jebba) to double their efforts in the area of Agriculture and extension services. Let the Governors ensure that no Herdsmen feed their animals with our farms produce in Southwest without such Herdsmen paying for such criminality, let us rid our bushes and forests of criminal Herdsmen by profiling them to ensure that cows are not sent to eat up our farms while the North conduct their own farming without hindrance and disturbance from Herdsmen who are from the North to ensure food security in order to prevent a future occurrence of the North thethreatened us with starvation to death through food blockade. The greatest weapon of warfare is blockade of food source. Let us be wise and the time is now! Wake up, Oduans wake up! Let us make hay while the sun still shines.

LutanFyah:
Go to school, they will refuse and turn around to kidnap people who wants to be educated.

The dolt doesn't know that his salary and that of kins comes from the crude from the south.

The South can grow or import their food, I wonder how the north will manage to pay their workers without the oil money.

LutanFyah:
True to your name,you're really a product of quota system education.

Where do you get the crude to be refined in Brazil or China? When the south blocks the exploitation of her crude,I wonder how you lots power your machines, pay your salaries etc.

Mikecold:
lol, your name explains it all.

I don't expect any intellect

Mikecold:
Because it belongs to an Abdul doesn't change anything.

You are talking from the one Nigeria mentality, if a war breaks out between the south and the north both regions would kiss the investment in the opposite direction goodbye.

You can't stand the people of that state if they insist no activities would go on in that site.

Every international shell, Chevron begs their host communities

BabaOwen:
When I quoted you, I said "if things fall apart".

You saw the way things fell apart in Ibadan? If it happens like that again and it leads to the fall of Nigeria... Dangote refinery can be taken over by us, while we kick abokis out.

Just the way Nigeria took over BP.

As at now, we can only block the Lagos Ibadan expressway, this way, not even toothpick will get into the north once Lagos Ibadan expressway has been block. The north will run out of petrol, diesel and kerosine in a week or two.

Mikecold:
So if the north puts a blockade on the south and vice versa how would north benefit in anyway from this refinery that empowers akwa ibomites

BabaOwen:
You're truly a fool

This was the way your aboki brothers were boasting in Ibadan too.

Let's just pray things fall apart in Nigeria... I'm tired of you abokis.

I live in ikorodu, everybody dey talk about Una and everybody is dam fed up of you abokis. If not for our useless politicians.

But make we still dey look for now

Mikecold:
You mean the refinery in Akwa Ibom

GreaterFuture:
Well-done, That is big stuff I'm see there