Nigeria is poor because it is dependent on imports.
Whenever the country encounters a problem, it imports solutions. This is why there is no investment in the country; the government will always default to importing food, solutions, fuel, etc. Why invest in industrial development when the country prefers to import? That's why there are no jobs or products to export.
AfDB’s Adesina warns Nigerian food import policy could destroy agriculture The AfDB president, formerly a minister of agriculture for Nigeria, said that the policy risks turning the country into an import-dependent nation Akinwumi Adesina, the president of the African Development Bank, has said the decision by Nigeria’s government to allow large-scale food importation risks destroying the country’s agriculture sector.
On July 10 Nigeria’s minister for agriculture Abubakar Kyari said that the federal government would suspend duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas through the country’s land and sea borders, for 150 days.
However, Adesina, himself Nigerian minister of agriculture from 2010 to 2015, decried the policy in a speech to African leaders of the Anglican Church in Abuja.
“Nigeria’s recently announced policy to open its borders for massive food imports, just to tackle short-term food price hikes, is depressing,” he said.
He warned that the policy could undermine private investments in Nigeria’s agriculture sector.
“Nigeria cannot rely on the importation of food to stabilise prices. Nigeria should be producing more food to stabilise food prices, while creating jobs and reducing foreign exchange spending – that will further help stabilise the naira,” he said.
ivandrag0n: Your bloody opinion and it counts for nothing with me.
I’m not dumb and I know Dangote is paying huge sums of money on PR, for people to come and whitewash DRL’s images on social media and other forums.
When Nigerians were attacking government because of Dangote many weeks back, we were not bad people but now that most Nigerians are seeing through Dangote’s mask and that he wants to foist another monopoly on Nigeria, you are here on their behalf! It cannot work.
Everyone is now suspicious of Dangote’s intentions. If he means well, why should imported petrol be cheaper than the one he refined locally, even when he purchased crude in local equivalent, without the overheads associated with importation?
Teacher, don’t feed me rubbish!
You are desperate. Why is NNPCL still importing PMS despite investing $4 billion to rehabilitate the three refineries?
Nigeria should direct their anger to NNPCL, which, over the past 50 years, has destroyed the Nigeria energy industry.
Why are dirty fuels being imported? Without official standards for methanol, authorities do no tests, so fuels with high levels go undetected. Methanol is an additive that can be blended to improve cheap, low-quality petrol. However, this consignment had excessively high levels, which damages engines.
Nigeria is dependent on fossil fuel imports. Despite being one of the top ten producers of crude oil worldwide, the national refining capacity is poor. Meanwhile, consumption is high and rising – estimated at 65 million litres per day in 2021 – because electricity and transport options are predominantly fuel powered. The state-owned Nigerian National Petroleum Company (NNPC) Limited is the sole importer of petrol in the country, but does sub-contract petroleum marketers in crude-for-fuel contracts, which is how the high-methanol fuels were supplied. These deals are notoriously opaque, and have been at the centre of several corruption allegations.
TechCapon: Something is definitely wrong with this dangote. The stupid refinery is causing pains to Nigerians already Nigeria consumes average of 80 million liters of fuel daily and you cannot meet the fuel demand alone. Now you want to stop importation of fuel so that we will be suffering long queues to buy your stupid expensive fuel.
I thought you were bragging that you can export your fuel if nobody wants to buy. Go ahead and export the fuel and let's buy the imported ones. He can only succeed in business through monopoly and is always fighting competition. Rubbish
Where is the monopoly? Instead of attacking Dangote attack, NNPCL has invested $4 billion in repairing four refineries that are not working.
BUA Group has a 200k refinery coming onstream next year.
NNPCL has 450k refinery capacity; why ae they not working
Nigeria also has 200k module refineries across the south of the country.
Dangote has invested over $30 billion into the country to support local production. Yet, the useless NNPCL is still importing fuel despite spending $4 billion to repair the PH, Warri, and Kaduna Refineries.
Oxtertee: what did he mean by telling court to void petroleum importer license ?
so that he can show Nigerians premium shege and monopolize as he did on other commodities.
fg should not listen to this selfish greedy monopolistic business man.
Where is the monopoly? Instead of attacking Dangote attack, NNPCL has invested $4 billion in repairing four refineries that are not working.
BUA Group has a 200k refinery coming onstream next year.
NNPCL has 450k refinery capacity; why ae they not working
Nigeria also has 200k module refineries across the south of the country.
Dangote has invested over $30 billion into the country to support local production. Yet, the useless NNPCL is still importing fuel despite spending $4 billion to repair the PH, Warri, and Kaduna Refineries.
Eteka1: Most of you shouting monopoly don't understand the implications of continuing importation of petroleum products.
40% of the pressure on forex in Nigeria is for the importation of refined petroleum products
- Dangote currently refines enough products to meet domestic consumption and to spare.
- If Nigeria stops imports of refined petroleum products, the pressure on our forex will be reduced by as much as 40% leading to the massive appreciation of the Naira.
- A barrel of crude oil currently sells for about $80 per barrel. With the exchange rate hovering around N1,700 to a Dollar. When pressure is reduced on our forex as a result of an end to imports of refined products, the Naira can appreciate to about N1000 to a USD. That means refineries in Nigeria will need less Naira to buy each barrel of Crude oil. This will lead to a drop in pump prices and inflation.
- by continuing to issue licences to import refined petroleum products, NNPC is killing our economy.
This nonsense has to stop
God Bless you.
It is not rocket science; it produces locally and encourages local competition. If Nigeria links its currency to locally produced PMS the Naira will appreciate as there will be demand for the Naira to buy PMS
Kewtt: Dangote cannot monopolize the Nigerian market. Impossible.
Where is the monopoly? Instead of attacking Dangote attack, NNPCL has invested $4 billion in repairing four refineries that are not working.
BUA Group has a 200k refinery coming onstream next year.
NNPCL has 450k refinery capacity; why ae they not working
Nigeria also has 200k module refineries across the south of the country.
Dangote has invested over $30 billion into the country to support local production. Yet, the useless NNPCL is still importing fuel despite spending $4 billion to repair the PH, Warri, and Kaduna Refineries.
ivandrag0n: You said it all. I have been one of Dangote Refinery Limited’s most ardent supporter.
However, to want to be a monopolist by force and also refuse to be transparent with the pricing model for a commodity that impacts the daily life of the citizens, is beyond evil.
May it not be well with any judge that grants such protectionist injunction to Dangote and may it not be well with NNPC/NMDPRA if they submit to Dangote’s attempt to subjugate the economy to protect his interests alone!
Where is the monopoly? Instead of attacking Dangote attack, NNPCL has invested $4 billion in repairing four refineries that are not working.
BUA Group has a 200k refinery coming onstream next year.
NNPCL has 450k refinery capacity; why ae they not working
Nigeria also has 200k module refineries across the south of the country.
Dangote has invested over $30 billion into the country to support local production. Yet, the useless NNPCL is still importing fuel despite spending $4 billion to repair the PH, Warri, and Kaduna Refineries.
CodeTemplarr: Lol. I am with Dangote on this. You cannot import and regulate your rivals while grounding the local refineries. These idiotic fellas representing the state, they dont care about the state welfare and are ready to crash the whole system just to become 'something' in life.
Well said
Those companies are importing dirty fuel into Nigeria and taking out the country's limited FX. If you want to compete with Dangote build your refinery and compete
BUA Group has a 200k refinery coming onstream next year.
NNPCL has 450k refinery capacity; why ae they not working
Nigeria also has 200k module refineries across the south of the country.
Dangote has invested over $30 billion into the country to support local production. Yet, the useless NNPCL is still importing fuel despite spending $4 billion to repair the PH, Warri, and Kaduna Refineries.
IbeOkehie: cc Gerrard, we had this discussion a bit ago
Thanks 😊 to sulaak for posting this. It's a good summary and solution to a simmering quandary. Very relevant and well written.
Good Luck to Nigerians
I think Nigerians need to be realistic about their future. When a World Bank official stated that Nigeria would need 15 years of reform to end the present hardship, most Nigerian media houses and intellectuals started attacking the WB and IMF, forgetting that Nigeria's problem is deeper than economic.
The social collapse, the decay in education institutions, and the complete lack of accountable civil and public services will require substantial political and economic reform. We have witnessed how the PHCN, NFF, and NNPC have hindered development.
Neo-black Problem: Must Blacks Be Ruled by Whites in Order to Prosper?
Joseph Agbakoba
Nigeria just celebrated her 64th year of independence and it was a gloomy day for most Nigerians. This was captured very well in a scathing editorial by the Punch newspaper. The paper recounted the consequences of state capture by a coarse, brutal, rapacious and counter-developmental political elite – dramatic increase in poverty levels, illiteracy, banditry, insecurity, collapse of infrastructure and institutions, corruption, and virtually every conceivable public ailment.
In the estimation of many, the country is now a failed or virtually failed state. The arrogantly named “giant of Africa” has now seen that in the things that matter, which make a people great, she has always been a pony.
People are suffering in unprecedented numbers of malnutrition, starvation, malaria, political violence, banditry and joblessness in this underachieving pony of a state.
In response, many are calling for or actively showing their preference for re-colonization or a return to white rule.
This has to be understood well.
One, there are those who can afford to emigrate fairly legally, at least. So, they make their way to regions of white rule in the Western strong holds of Europe or North America, etc. This is the highly celebrated “japa” – escape from the bondage of fellow Black rule.
Two, illegal emigration to regions of white rule in spite of its many hazards, by poorer but desperate young Africans.
Third, the stay-at-homes, especially the youth, who want a return of white rule to take over their failed governments.
The fate of Nigeria is shared more or less by other sub-Saharan African countries. Recently, I listened to a viral clip by an apparently poor and frustrated South African calling for a return to white rule in her country for broadly similar reasons.
Then also I read about the shocking case of two black women who went scavenging for food in a white man’s farm in the North of South Africa. He killed them and fed their remains to his pigs to conceal his crime. This is cruel and racist and he and his accomplices must pay for their crime. But we must recognize that these poor black women were driven to extreme poverty and desperation by the failure and insensitivity of Black rule in a country that only 30 years ago won a hard fought victory against white minority rule.
These unfortunate women are not different from those who die on the perilous journey through the Sahara desert and the Mediterranean to Europe, or are sold into slavery by Arabs in North Africa.
This is the neo-black problem – which Franz Fanon did not see fully in his conceptualization of the black problem, but which like the black problem cannot be escaped by all black Africans, and for which recolonisation of any type is not a proper or lasting solution.
In short, the neo-black dilemma may be framed as follows: is it better to live under white rule without political dignity but with basic life-sustaining standards for many;
or to live under black rule with illusory political dignity and without basic life- sustaining standards for the majority?
We must square up to this problem in order to solve it. This begins with intellectual honesty and humility, utmost respect and responsibility for truth, factuality and functionality.
Unfortunately, one of the flip sides of the protest politics of African liberation struggle is the cultivation of a touchy egotistical response to every thing real or imaginary no matter how small that robs off negatively on our struggle-inflated and hypersensitized egos (a direct consequence of our struggle with a lingering alienation-negativity complex due to colonial racism).
However, as Thomas Sowell writes of the somewhat similar problem of the black redneck culture in the USA, we have to pull away from this irrational path of counter-development and focus on the things that matter.
Again, as Sowell points out, except for a few outliers, politics does not directly make a community rich. And, political ‘liberators’ are often an obstacle to the development of their people due to their interest in keeping self rewarding but developmentally negative or insignificant causes in the front burners of the public sphere and politics.
The path forward for Africa lies in cultivating higher and adequate levels of personal and communal agential integrity as well as full personal responsibility and productivity. Not to mention creativity (including epistemic creativity), productive justice (such as merit and freedom), harmony and reconciliation at local and international levels, and a proper domestication of capitalism and other related values and institutions. Africa must stop wasting her time on dreams of socialism because it is a system of wealth distribution primarily. Whereas, capitalism is a system of wealth creation primarily, and wealth has to be produced before it can be distributed.
As George Ayittey rightly pointed out, precolonial Africa was basically proto-capitalist, I would say, with a penumbra of proto-welfarism. Africa cannot live in an isolated, exotic niche of her own, outside global capitalism.
This is the transcolonial view that envisages a new self-created Africa that makes use of utilizable elements of, but also creatively goes beyond the limitations of the pre-colonial order, the colonial deposit and available global resources, to achieve a functional hybrid culture, especially heterosis (a vigorous hybrid that surpasses its parent stocks).
Further, Africa must shun victimology because colonization is virtually as old as human history and equally universal. And, as morally condemnable as it is, it is one of the means by which knowledge spreads from one society to another (some of the others being commerce, tourism of different types, and evangelization).
Without overly focusing on victimhood, many Asian former colonies have found ways of integrating helpful Western knowledge and values to create thriving modern states, in spite of local and international obstacles.
Africa must also give up her embarrassing disposition to pan handling and outsourcing solutions.
The task of driving this development lies with African intellectuals and intelligentsia because the saying “the intellect precedes all in humans” can be said to apply aptly to development issues.
Can this class and generation of Africans live up to their historical responsibility? Time will tell but it can be said that their job has been made easier with the coming of new forms of communication such as social media by which worthwhile initiatives can be rapidly incubated and brought to life across borders.
Failure will not bode well for us as it could lead to extinction. As the philosopher, Immanuel Kant, opines, humans of all the creatures in the world, are endowed by nature (God, some like me would say) with reason (including rational will and creativity) as their unique equipment for the mastery of the world and survival. We must exercise our humanity in this regard or be willing to perish.
Agbakoba is professor of philosophy at the University of Nigeria
RingRoadCartel: I can't believe that some yoruba people are mad at this man for trying to save them from what they're currently passing through.
How do these people think? It's like being pushed into the gutter, but then you're mad at the guy who tried to stop the cunnt who pushed you, because the cunnt is older than him and he should've showed some respect!
Furking idiots!
Odinbajo is just another Tinubu, tradermoni comes to mind.
Former Vice President, Prof. Yemi Osinbajo, yesterday, said the virtue of integrity has become a scarce commodity, regretting that only few were possessing it.
Where was his integrity when he promoted trader Moni? Where was his integrity when Buhari was abusing the law and printing over 30 billion Naira as Ways and Means? A useless man now cries when he has been discarded.
Osinbajo was vice president for eight years and witnessed the abuse of Nigeria. Tinubu might be a crook, but Osinbajo is not any better.
I was watching the YouTube video Why the Philippines Fell Behind in Asia: Lee Kuan Yew (ft. Singapore-Philippine Relations) and came across the To Do list at a conference by Lee Kuan Yew, to Filipino business.
Replace the Philippines with Nigeria and the disastrous US political system, the government and private monopolies, and the complicit media, and you begin to understand why Nigeria will never work.
Based on the video , no investor is going to waste their time in Nigeria , considering the high insecurity , lack of infrastructure and corruption
Zooposki: I think it’s mostly Yoruba people. I had no issues when I was in the midst of Igbos and other ethnic groups and had them as friends, but the first time I dare mingle with Yoruba people they almost ruined my life with fake gossip. That was the day I realized there can be smoke with no fire.
You have to bring tribalism into the discussion. What is wrong with you? I am sure you will be the first person to claim victimhood, forgetting that you are a life trabalist.
FutureFocus: Chinese State of Federal republic of Nigeria loading… a greek gift is still better than Chinese gift, trust me.
Another Chinese firm to build perimeter fence in Ogun state in attempt to snatch the whole state, the last one is still busy hijacking Nigeria properties around the world, I bet this one will seize the entire Ogun state Land from the government and rename is as Chinese State of Nigeria, just watch.
Note : please don’t forget to check my previous post for nice gadgets at cheap prices
Lalami3232: If a foreigner comes into this platform today, he will say "WOW, the Nigeria government is really trying". But we the bonafide citizens know say this na another project wey go take billions from the government and nothing positive may come out of it. The intention is good but the outcome is almost known even before the commencement of the project. Oga and madam, the best thing you can give to your child/children na citizenship for any of these good European countries. Your children deserves a functioning government. Your children deserves a system that's working. Your children deserves better than what you're getting. Now the question is: how do you give them such a life? It's so so simple!!! Hustle hard and leave the shores of 9ja, then your pikin go thank you tomorrow in life. What do I even know sef aside enlightening my fellow men nationwide with the good news
Oga if you no meet your wife as a virgin, oga go for DNA test oooooo because boreholes aka non-virgins can't be trusted atall atall
Instead of fighting for someone else citizen, while not fighting to regain Nigeria's dignity and citizenship. We cannot leave Nigeria for the crooks like Tinubu an co, Nigeria is our heritage.
dalitigator: What happens when everyone suddenly migrates to CNG and it becomes more expensive than fuel? Na my issue be that. Nigerians have the crowd and crab mentality and will gladly capitalize on any situation.
sholatech: Lets hope this is not true..Herbie had a very large heart and loved his parents. Except he wanted his kids to take care of his aged parents.
Wigwe was a fraud he built his business on corruption with the support of Nigerian politician and just like Mashood Abiola his legacy will be trash
Masterito: What matters is who is very corrupt to steal the money or use the borrowed money wisely.
Cheif, the main thieves are the civil servants in the government. They are responsible for major corruption and compliance with corrupt politicians.
It will be impossible for PO to avoid stealing without a complete overhaul of the Nigerian judiciary and civil services. The collapse in government and governance has made NNPC, customs, and MDAs inefficient.
phantom: The difference? Obi actually has a plan! Tinubu is clueless as fuk. I would be surprised if Tinubu actually wipes his ass himself.
Obi is sure as a frugal money manager that he could have borrowed 15 billion dollars, for instance to DEFEND THE NAIRA , KNOWING FULLY WELL, that the resultant currency appreciation, IF CHANNELLED TO THE APPROPRIATE SECTORS could give the economy the much needed "bolus of glucose" it needs to return 150 billion dollars back.
It's all about having a plan! Obi has always been about BORROW TO CHANNEL TO THE REAL PRODUCTIVE SECTORS AND NOT TO CONSUME BY spending recklessly on cars, yachts and private jets..
If I have a business that I know if I put in $2 will return $6.. why won't I borrow to put into it if I don't have the initial funding for it?
Don't forget! Obi is a business man! He is a billionaire from wholesale and retail... you think he doesn't know a thing or two about money management? You call him container economist but THAT IS EXACTLY WHAT WE NEED TO DIG US OUT OF THIS MESS.
Government borrowing is one of the reasons why a country has high inflation; the second is printing money.
The problem with borrowing to protect Nigeria is the corruption within the Nigerian civil and public sectors. Government officials and their partners will continue with the arbitrage, and the productive companies that require fixed foreign exchange will still have to pay the unofficial rate.
Peter Obi has the same plan as Tinubu. He clearly stated that he would float the Naira and remove subsidies on day one. Buhari borrowed to protect the Naira, and that's why the country is in a mess today; you cannot protect a currency with no productive sector.
There is a better way to solve Nigeria's problem, and that is to prioritise industrial policies, borrow to fund food production and national security, borrow to complete energy projects such as the Brass on Olokolo LNG project, borrow to upgrade and fix Ajaokuta, Alscon, and the refineries, then sell them to an established organisation, and borrow to fund education and healthcare.
tnerro1: I wanted to say something nasty, but I changed my mind. Me and the girl no get problem
Rest well girl, but your papa no let others rest well
Look how connected Kyari is this is suppose to be the boss of a private organisation and not a politician. Yet he is surrounded by elite politicians that has sent 150 million Nigerians into abject poverty.
iwaeda: Nlfpmod, Dangote will eventually sell his imaginary products through the sea to Benin, Togo, Algeria. They were all shouting, if Dangote comes on board, fuel will sell less than N500 per litre. NNPC should allow everyone that wants to import to do so, without interference. I believe it will be like water.
Ofunaofu: FG have the power to permit Oil Marketers to bypass NNPCL but don't have power to fix pump price of petrol
Thunder 🔥 Tinubu
Nigeria's PMS is one of the cheapest in the world. The problem is with Nigeria's purchasing power, inflation and value of the Naira.
Gasoline prices, liter, 07-Oct-2024 Gasoline prices, Octane-95, 07-Oct-2024: The average price of gasoline around the world is 1.27 U.S. Dollar per liter.
However, there is substantial difference in these prices among countries. As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices.
One notable exception is the U.S. which is an economically advanced country but has low gas prices.
The differences in prices across countries are due to the various taxes and subsidies for gasoline.
All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different. Read our fuel price primer to understand fuel price differences across countries and over time.
Business › Re: Dangote Refinery Asks Court To Void Import Licenses Of NNPCL, Matrix, 4 Others by sulaak(m): 9:31pm On Oct 21, 2024
Nigeria consumes average of 80 million liters of fuel daily and you cannot meet the fuel demand alone. Now you want to stop importation of fuel so that we will be suffering long queues to buy your stupid expensive fuel.
