Rafindo's Posts
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Believeintruth:. Mehn Boss you need to study manufacturing accounting and cost variance of a commodity. First when manufacturing takes place in a country, so many cost are attached to that manufacturing such as variable and fixed cost. When such product is exported to another country the cost of the commodity in the nation importing will not be the same with the country of manufacturing reasons been that the fixed costs associated with that commodity is already borne by the manufacturing country their by reducing the cost of the commodity in the imported nation inorder to enable it compete. Invariably 80% of the fixed cost borne by manufacturing country. Circa Samsung produced in sk is cheaper in US than south Korea. |
heysquare:The guy is just shouting monopoly this and that without checking the meaning of the word monopoly. He is actually stupid. |
LandMann:. Well it seems I am the one that can't rescue you now. In economics their is a difference between monopoly and oligopoly. Their is a clear distinction but you have continue to play the ostrich here. In political economics monopoly is rampant in a communist or socialist republic like China or Russia but Nigeria practice a hybrid economy so can monopoly exist if it is not the government. Stop been emotional about the economies and face the fact. If you have 10 million usd you can still build modular plant for cement. That stupidity theory is for you to read it again and place ur self at it. |
LandMann:. 🤣🤣🤣 Do you know la farge was existing before dangote started cement. So how do you claim monopoly when a player was already there. Well the entry into a cement business has a high Moat. An average 3 million MTTPA cement plant cost 500 million dollar USD. So the question now is how many Nigeria can cough out that amount. Knowing fully well that Nigeria with 500 million usd and above on Nigeria are not up to 20 according to Forbes. For your information 2 cement companies are on the verge of starting theirs next year. Resident cement company by Junaid Abbas and MSM cement company by a cousin of dangote. Do you know if you don't have ur pit chemistry okay your investment in cement plant can go down the drain. That why dangote and Bua are fighting over some mining zone in okpella because of pit chemistry. If government wants the price of cement to be 2000 naira per bag it can by entering the sector through an SPV model after the NLNG . The money can be gotten from NSIA and a consortium of PFAs utilizing pension fund. 14 states has limestone deposit that can service up to 20 cement companies. Imagine if we have 25 cement companies what will the price be like. |
teepain:. You can not develop an economy by importation of a product that the raw material is abundant in Nigeria and expect it to grow. Let me use cement as a circa. Before Obasanjo came to power in 1999, Nigeria had over 10 cement companies that was at the verge of collapsing due to cheap cement imports from Brazil,India and china. The only ones functioning minimal was sokoto,ewekoro,shagamu and ashaka this companies employed thousands of Nigeria. Guess what the major importer of cement that era was dangote,ibeto and 11 other importers. How many jobs did the importation create then just few hundreds jobs mainly loaders and forklift operators. So Obasanjo came on board and was annoyed with the situation. First he said how can the country with the highest limestone deposit in Africa be the highest importer of cement in Africa which is like the current situation we have now. Then he brought the backward integration program. Then he told all the importers that he will grant them tax waivers on two condition. One is that they must show a business plan of building a cement plant in the next 5 years or acquire a moribund plant. Guess what some importers like ibeto, Reagan and madwell,dabull, eagle cement started playing tricks so that their import allocation will increase yet with no plans of building one or acquiring. Only dangote keyed into the policy by acquiring one benue cement and going ahead to build One. The rest started shouting monopoly up till this moment. Now a sensible president will prefer the price of a commodity to expense knowing that thousands of job will be created meaningful ones like engineers, PAYE for the state, mineral loyalties, community funds,CIT, mining license lease over importation that do not create tangible meaningful job and only custom duties with PAYE not possible. |
LandMann:. Do you know the cement sector at all. At least I work there and I can give you some free lectures. First the cement sector has no monopoly. What you are confusing with monopoly is actually oligopoly. Nigeria has only 5 cement companies namely Dangote La farge Bua Mangal Purchem. So where is the monopoly here rather than confuse urself on the basis that having 60% of the market shares is called dominant player or market leader. For you to have a commodity cheap supply must exceed demands. South Africa has 15 cement companies, India has 300 china has 500 cement companies so tell me why cement won't be cheap there. |
LandMann:I want to join this conversation with civility. Please what is monopoly. Then which sector has a monopoly. Then which sector those dangote monopolized. Do you know what oligopoly is. |
Petroan is a very useless organization and not interested in developing our economy. How can an organization that has been in business for 25 years could not build a refinery rather wants the short cut. When construction of dangote refinery started in 2018 petroan should have started theirs in order to compete with him. Rather they preferred fast money. So they are telling us that an association of 3000 petroleum marketers can not match dangote that shows you how useless the organization is. |
DatIgalaDude:. They are all functioning but not in optimal capacity due to the same problem Dangote is suffering from which is crude feedstock and importation of cheap and sub standard products. Apart from African refinery that is yet to kick start, the rest started before dangote. |
kenex4ever:. So is it dangote fault that they don't produce PMS |
ufotunang:. They are just that the volume is very low. And some concentrate on a particular crude products than PMS. Like azikel focus more on AGO and naptha oil. |
DatIgalaDude:. Nigeria has up to 7 crude refinery, so why won't an association be formed. Waltersmith. Midstream. Duport Azikiel. Dangote. Edo refinery. African refinery. |
As the call for more industrialization continues to echo and generates more interest amongst investor, the most noticeable sector getting this attention is the cement sector. Know for it capital intensive investment and it high return on it investment, it is not a surprise that a new player has decided to enter the fora. Know to be the home of the largest cement producing nation by production estimate of 50 million MTPA, and over an estimated 2 billion tons of limestone deposit in the world. It is expected that investment in cement will continue until a saturation point is achieved between supply and demand. Nigeria currently have 5 integrated cement plant. Namely; Dangote cement,Bua cement, lafarge cement, mangal cement and lastly purchem cement. In terms of capacity of a 1MMTPA above the nation only boast for an amount meagre in attaining over surplus of the artificial binder. In relative terms India boast of over 200 cement companies and South Africa boast of over 15 cement companies. This illustration confirms the need for more cement companies to establish in Nigeria. Can Resident cement company make itself the 5th cement producing company in Nigeria?. Only the dollar and the political will tell. |
No cement plant was built using 1.5 billion USD by sinoma for a 3MTTPA. This a false head line propagated to either jack up the value of the company, remember sinoma contract are usually in FBOT basis in Nigeria.
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Oshokhai69:. Greenfield project like this cost in the range of 600-800 million usd for a 3MTTPA plant such cost must aligned with the average of cost per ton globally. Which is 150- 300 usd per ton. Inclusive of 50MW of wartisal power project that is what will make the amount high up to 800 million USD. That amount been quoted is an attempt to over value the plant in such away that he will now be valued as a billionaire in USD . Base on sinoma cost pricing 1.5 billion is what is needed to build 6MTTPA. |
TruthsFM:. Anyone who believes that cement plant cost 1.5 billion USD, then I have a plot of land in aso Rock to sell to you. |
legitnow1:. Do you know the chicason group has mining license for cement production yet they are yet to start something almost 10 years now. So the truth is that majority of those making noise about monopoly are not interested in manufacturing but want quick money and no stress. 10 people with 100m usd you will get 6 million MTTPA . |
Simongm2: |
I hope you the difference between ethnic group and tribes. Nigeria doesn't not have up to 70 ethnic group. |
Ibeto is not serious about manufacturing. As a matter of fact he has never produced 1kg of cement before. |
AnonPoet:. Nigeria has 4 cement companies, 10 plants. 22 lines. Dangote Bua La farge Purechem. With one soon to be commissioned. Mangal With one seeking funds to build. Madugu. The cost of is cement is driven by 3 pointers . Cost of gas which continues to increase. Cost of hauling both for direct production and indirect. Cost of spare parts which is forex denominated. Some people think to grind marble and limestone is like a blender grinding tomatoes. This plates are very expensive and dollar expensive. Besides you will need to protect your profit margin at all cost. Solution to bring the price down. An additional building of 10 new cement companies could do the magic. Encouraging private sector to participate more like the governor's leading the charge. Stop issuance to cement companies with more than 4 plants from acquiring new mining license. Involve flsmidth and sinoma in building and training and transfer of technology to the locals. A new policy on modular cement plant can encourage the building of 50 modular plant with annual capacity of 50,000 MTTPA Yahoo boys can be encouraged to do this. 10 new companies can have the site in the following area. 1.Ogun makun area 2. Ondo okeluse area. 3. Ebonyi effium/nkalagu area. 4. Abia arochukwu area 5. Enugu 6. Cross River. 7. Nasarawa 8.Gombe 9. Adamawa 10.sokoto. The key is simple in order to stop crony capitalism in the sector or oligopolism. We need to stop the existing 5 players from having more than 4 plants. Then areas with lack of sufficient limestone can look into LC3 type of cement. |
This clearly shows the lawmaker is doesn't not know the procedure in creating state in Nigeria. It is very clear by the constitution on the process and procedures. Ignorant people everywhere. |
fadilaMaikiriki:. I think it has to do with you what you consider good for you. First what is the essence of the extra piercing. What value will you accrue from it. This will decide if your decision is okay. |
ejimatic:Base on your concord rule . 24 state and FCT. 24 state and the FCT should be treated the same while the insertion of the article THE has no bearing on agreement with the Intial clause is more of claiming an exclusivity to a compound word. The right legal geographic name of Abuja is FCT and not The FCT. When The is used in legal geographic naming it denotes a use of sovereignty that is exclusive in commonwealth realms. |
ejimatic:I want to ask you a simple question. The president and chairman The president and the chairman Are they the same thing. |
Strafudeen:. Your argument is baseless and not substantial. First the constitution doesn't recognize geopolitical zones. They where created just for political exigences. Nothing stop a rearrangement that puts Benue in south east and move kaduna to north central. |
pquaver:. 😂 You are comedian. The constitution specify that no matter the landmass number of LGA or population that each state is entitled to 3 senators with FCT an exception. By landmass fct is bigger than Lagos, Anambra, imo, ebonyi and abia. So your argument holds no water. How many times was the word Kano mentioned in the constitution and compare it with the number of times FCT was mentioned. |
2mch:. If we follow your thoughts process then fct deserve 3 senators and more House of representatives members. If not why make it a territory when it is not given special status. Besides is it included in the schedule list of state |
pocom35:Mangal Nigeria has 7 limestone deposits that has not been exploited. If they are 7 new cement plant can come in to kick the price downward. It cost 700 million USD to build a 6MTTP cement plant. 7 multi millionaire in USD can build a cement plant. Even 700 yahoo boys 😂 with a million dollar in contribution can build a cement plant if they trust themselves. Nigeria Profit margin on cement is the highest in the world. At 200% of the cost of production. The truth is that we have a lot of portfolio investors mindset in Nigeria. |
Looking for a funky Igbo song of 80s or 90s about a guy promising a lady Love and the guy has to turn up if not her friends will be laughing at her. The guy responded it now you know abi. |