If Dangote ends up selling fuel above the regulated price, then the stupid refinery should be burnt down. The last thing Nigeria needs is yet another exploitative shylock monopolist.

With all the incentives he is getting from government - forex support, duty waivers, tax holidays, policy support, etc.... PLUS buying crude oil locally (which the government can easily sell to him at friendly prices, not at OPEC prices, PLUS the fact that he is not subject to the vagaries and costs of imports, unlike imported fuel.... So what exactly is he talking about?

Dangote's fuel SHOULD be cheaper than imported fuel, and even at that he would still be making massive profit because there's a massive local market waiting for him exclusively! No stupid 'technical' or 'financial' jargon offered as excuses for higher prices should be entertained by discerning Nigerians.

Olawalesmarter:


people that were even hired on merit also engage in corruption. If every sector is privatize, they will only hire people on merit and they will not only hire people on merit they will be adequately supervise because the people in charge will not want to be out of Business and there will be no safe environment for Corruption, anyone that try to engage in corruption will be catch easily and dismiss and no one will want to lose their Job, and the people in charge of the business will try everything to make sure they are doing well so as to stay in business. The Government Job will be to tax, regulate and help all these private sectors activities and make sure their services is not detrimental to the People in every aspect Easy Peasy. It is working for developed countries and it will also work for us

The privatization of the GSM that everybody is touting, there are still inefficiencies in the system. We should not even talk about the electricity privatization lol. Why do we want to create more problems for each other in this country? The poverty capital of the world is not enough for us, we want to privatize the oil sector for an oil we have so that much more people are plunged into poverty to have an unassailable lead SMH. I have said my own. I will stop arguing with you guys on this forum. Just because your politicians say privatization is the only solution, does not mean it is actually right. They just want more assets for themselves, their cronies and their friends. See the electricity privatization. I have said my own.

Hedonini:
If Dangote ends up selling fuel above the regulated price, then the stupid refinery should be burnt down. The last thing Nigeria needs is yet another exploitative shylock monopolist.

With all the incentives he is getting from government - forex support, duty waivers, tax holidays, policy support, etc.... PLUS buying crude oil locally (which the government can easily sell to him at friendly prices, not at OPEC prices, PLUS the fact that he is not subject to the vagaries and costs of imports, unlike imported fuel.... So what exactly is he talking about?

Dangote's fuel SHOULD be cheaper than imported fuel, and even at that he would still be making massive profit because there's a massive local market waiting for him exclusively! No stupid 'technical' or 'financial' jargon offered as excuses for higher prices should be entertained by discerning Nigerians.

Thank you! Eureka! You are one of the sane ones here! Kudos! We do not have any problem with Dangote if he establishes his company without government help and does how he likes. But to get an unfair advantage from a government using our patrimony and our taxpayers money and then turn around to price the same people who provided the funds to death? Haba, that is wickedness, that is not business. I have said my own.

obailala:
You're obviously not as smart as you think you are. That's the reason you instantly misunderstood the point I was trying to make, and instead of asking for a clarification (as normal people do), you jumped instantly to unleash insults (which is the typical approach of dull people trying to look smart).

Lol. I punched holes in his logic. He has resorted to insults SMH. You need your brain examined and fast too.

yemi15:


The privatization of the GSM that everybody is touting, there are still inefficiencies in the system. We should not even talk about the electricity privatization lol. Why do we want to create more problems for each other in this country? The poverty capital of the world is not enough for us, we want to privatize the oil sector for an oil we have so that much more people are plunged into poverty to have an unassailable lead SMH. I have said my own. I will stop arguing with you guys on this forum. Just because your politicians say privatization is the only solution, does not mean it is actually right. They just want more assets for themselves, their cronies and their friends. See the electricity privatization. I have said my own.

GSM privatization is working, Electricity Privatization is working because there have been more improvement in the duration of electricity, we now have 20hours of electricity everyday in my region compare to 4-8hours electricity when it was still under government, the only problem is that Government is still failing to do their Job to regulate the activities of this private sectors, but the privatization is really working under the Government it was a total disaster back then when a transformer broke down it would took almost a month to repair but now they repair any transformer that break down within short period of time and this is my experience in my region. The GSM privatization is working, but the Electricity privatization is not yet to its full potential because the Government fail to their Job. If the Government tell them to do anything they will have no option other than to obey the Government or else they will be penalize, but the Government is failing to regulate them.

Olawalesmarter:


GSM privatization is working, Electricity Privatization is working because there have been more improvement in the duration of electricity, we now have 20hours of electricity everyday in my region compare to 4-8hours electricity when it was still under government, the only problem is that Government is still failing to do their Job to regulate the activities of this private sectors, but the privatization is really working under the Government it was a total disaster back then when a transformer broke down it would took almost a month to repair but now they repair any transformer that break down within short period of time and this is my experience in my region. The GSM privatization is working, but the Electricity privatization is not yet to its full potential because the Government fail to their Job. If the Government tell them to do anything they will have no option other than to obey the Government or else they will be penalize, but the Government is failing to regulate them.

20 hours of electricity and it is all over the whole country Abi, Benin City that is in darkness are not Nigerians like you? Why are Nigerians selfish? SMH. As for the GSM privatization, you might want to know that our data is the most expensive in the world. You talk about competition for the GSM privatization, and we have not had a new company issued license in there since 10+ years ago? So you tell me companies like Orange, T-Mobile are not interested in doing business in Nigeria? Continue, so gbo? I rest my case here.

yemi15:


Thank you! Eureka! You are one of the sane ones here! Kudos! We do not have any problem with Dangote if he establishes his company without government help and does how he likes. But to get an unfair advantage from a government using our patrimony and our taxpayers money and then turn around to price the same people who provided the funds to death? Haba, that is wickedness, that is not business. I have said my own.

He will return every money he borrowed with interests, stop talking as if the Government is setting up the business for him, and he started with 60% of the Capital the government and other foreign bank provide 40% which he will definitely repay. Stop bitching so hard please

Olawalesmarter:


He borrowed money from CBN he would repay it with interest

never saw anywhere it stated the money as a loan tho

A wise govt should have used that money to negotiate for a stakeholder part in the company through acquisition of bulk shares

Olawalesmarter:


He will return every money he borrowed with interests, stop talking as if the Government is setting up the business for him, and he started with 60% of the Capital the government and other foreign bank provide 40% which he will definitely repay. Stop bitching so hard please

He will do that with the forex unfair advantage he got too that has entered voicemail? Who is bitching here? You need your brain examined and fast too. So gbo, Omo ale jati jati.

yemi15:


20 hours of electricity and it is all over the whole country Abi, Benin City that is in darkness are not Nigerians like you? Why are Nigerians selfish? SMH. As for the GSM privatization, you might want to know that our data is the most expensive in the world. You talk about competition for the GSM privatization, and we have not had a new company issued license in there since 10+ years ago? So you tell me companies like Orange, T-Mobile are not interested in doing business in Nigeria? Continue, so gbo? I rest my case here.

What if they are not interested in doing business in Nigeria? and FYI our data plan is one of the Cheapest in the World not one of the most expensive.


Here’s how much its costs to buy 1GB (Countries with expensive mobile data)

1. Equatorial Guinea - $35.47

2. Zimbabwe - $25

3. Swaziland - $21.86

4. Chad - $13.60

5. Congo Rep - $11.97

6. Namibia - $10.86

7. South Africa - $10.34

8. Mali - $10.27

9. DRC - $10

10. Angola - $9.94

Olawalesmarter:


What if they are not interested in doing business in Nigeria? and FYI our data plan is one of the Cheapest in the World not one of the most expensive.


Here’s how much its costs to buy 1GB (Countries with expensive mobile data)

1. Equatorial Guinea - $35.47

2. Zimbabwe - $25

3. Swaziland - $21.86

4. Chad - $13.60

5. Congo Rep - $11.97

6. Namibia - $10.86

7. South Africa - $10.34

8. Mali - $10.27

9. DRC - $10

10. Angola - $9.94

Source and HDI for those countries too? So no other company is interested in our GSM sector for 10+ years? Continue deceiving yourselves and your followers, so gbo? I rest my case here. No more replies from me. Our people have a long way to go in this country when you can be supporting your oppressors and their cronies so that you can get jobs SMH.

yemi15:


Source and HDI for those countries too? So no other company is interested in our GSM sector for 10+ years? Continue deceiving yourselves and your followers, so gbo? I rest my case here. No more replies from me. Our people have a long way to go in this country when you can be supporting your oppressors and their cronies so that you can get jobs SMH.

Every sector have been under the Government for years and it never work only Massive Corruption and looting, but things improve when we start privatizing it. You don't do the same thing over and over again and expect different result, google is your friend for the source. Even Data is Expensive in USA and they even pay tax for every subscription

OAUTemitayo:

Let's say we should not root for somebody that can't revive refineries in 3 years, don't you think it amounts to inherited foolishness and arrant stupidity to tell us to vote in a party that cannot revive same refineries in 16 years?

Talking about this party something is very laughable.... And over 40 percent of those people that ruled for 16 years are in APC now...so where is the sense in that point?

yemi15:


So Saudi Arabia, Malaysia and even Angola that have national oil companies are wrong abi?What is this one saying?

Government has no business running a business especially in a country like Nigeria.
The function of a government is making policies, regulation, policing and basic infrastructure.

If Government must have a business, it has to be PP and concessed to a private firm to handle.

yemi15:


Lol. I punched holes in his logic. He has resorted to insults SMH. You need your brain examined and fast too.

You did not evrn have a clue what I was talking about, yet you think you punched holes? Punched holes in what exactly?... Did I tell you I was arguing with anyone?... Meanwhile, the last time I checked, you were the one who introduced filthy language ("stupid logic" to describe a comment without even having the simple decency to first understand what I was talking about.

Okay a simple challenge is open to you, kindly explain what you understood I was talking about?...

No thanks to social media and the proliferation of internet sevices all over Nigeria. That explains why a person (probably even a child) would just come online insulting people he doesnt know, and thinking it makes him look smart.

obailala:
You did not evrn have a clue what I was talking about, yet you think you punched holes? .. And you obviously were the one using filthy language "stupid logic" to describe a comment without even having the simple decency to first understand what I was talking about.

Okay a simple challenge is open to you, kindly explain what you understood I was talking about?...

No thanks to social media and the proliferation of internet sevices all over Nigeria. That explains why a person (probably even a child) would just come online insulting people he doesnt know, and thinking it makes him look smart.

I am not going to dignify your childish tantrums with an answer. Once again, you need your brain examined and fast too.

I sense trouble for Nigeria if I am to go by dangote words.
PMS would be sold at international export price .
Meaning as it stand, cost of exporting PMS to Nigeria let's say is N230,government is financing around N90 per litre but with dangote. If government decide not to subsidize it ,then dangote would still be selling at around N150 locally.
But the only good thing is if normal export rate is N150 without adding cost of transportation and other contingencies... Then if government subsidize dangote,we might get it around N100, but if they don't, it is still the same as dangote is focused on profit making and would rather prefer exporting it out.
This is a shame on Nigeria, dangote is becoming so selfish

yemi15:


I am not going to dignify your childish tantrums with an answer. Once again, you need your brain examined and fast too.

I didnt expect anything more from you. When people have nothing to say, they switch to insults and when you ask them to rationalise their position, it's obviously impossible for them to do that because they have nothing upstairs but insults.

Gerrard59:
Colour me surprise.

What does it mean?

santopelele:
this man (dangote) will buy nigeria and everything (including u) in this shithole.
if dangote can build 1 standard refinery, what stops the federal govt frm building 10 of it.
shame to our politicians

Have you and all those who liked your post been living under a rock?

Governments globally are exiting business and are privatising realising the private sector is much better at running business and you now ask government to return to it's vomit by using scarce resources to build what will eventually be white elephant.

The FG presently is borrowing right left and center and it's now to borrow more to build a white elephant.

Any government built refinery will be forced to sell oil at subsidised prices which is a death warrant. It is bankrupt from the word go.

@Yemi15

obailala:
Dangote will not sell petrol less than N200. When his refinery comes fully on stream, and when Nigeria starts producing enough to meet local demand, the govt will totally halt the importation of petroleum products, and then fully deregulate the downstream sector, thereby giving Dangote and his tiny competitors (i.e. owners of the other tiny modular refineries) full monopoly. When thay time comes, Dangote will sell petrol for not less than N200, and Nigerians will have zero choice but to buy it like that. This isn't just an empty prophecy, its a logic based prediction.

At the end though, the stoppage of fuel imports would give Nigeria's economy a turnaround; that's the only bright side, which of course is really bright.

The above is exactly what I said, I simply gave a prediction of what will happen when Dangote refinery comes on stream - Nigeria will stop importing fuel, Dangote will enjoy a major monopolistic power and he will set pump prices far above what anyone thinks (over N200)...

I also conclude by saying, the only bright side of the situation though would be that since Nigeria will stop importing fuel, there would be a positive impact on the economy.

...and then you responded with the following insulting comment.

yemi15:

And you forgot make the people poorer without commensurate salary increases. So we can get an unassailable lead as the poverty capital of the world. Well done. See how I punched holes in that your stupid logic.

So I ask you once again, for the sake of decency, what exactly is stupid in what I said above to warrant such a response from you?... What exactly is the point I made which you claim to have punctured?

GenSpecifics:
But the monopolist will get subsidy from FG on crude oil

Dangote is NOT in any way a business genius but a crafty govt contractor who depends solely on lobbying and govt patronage.

If you think otherwise, then ask why his net worth dropped when Nigeria went into recession?

when share prices plummet, what do you think will happen to the shareholders? Do you know how many billionaires in America will lose money if America goes into recession?

Newboss:
When did $9b become 75b naira?

If that thing is true, then Nigeria is definitely very useless. You don't do that. That's a private business

I hope the 75b is just the support given by CBN

75b Support as Loan

santopelele:
this man (dangote) will buy nigeria and everything (including u) in this shithole.
if dangote can build 1 standard refinery, what stops the federal govt frm building 10 of it.
shame to our politicians

The government should not be in the business of building or operating refineries (nor any other business that the private sector can run).

GenSpecifics:
But the monopolist will get subsidy from FG on crude oil

Dangote is NOT in any way a business genius but a crafty govt contractor who depends solely on lobbying and govt patronage.

If you think otherwise, then ask why his net worth dropped when Nigeria went into recession?

Virtually everyone else’s net worth dropped during the Great Recession. The German billionaire Adolf Merckle even committed suicide.

Furthermore, the massive devaluation of the naira against the dollar (from about N198/1 to N367/1) meant a corresponding devaluation in Dangote’s naira-valued assets (including the publicly-traded Dangote Cement, Dangote Sugar, Dangote Flour and NASCON salt). Most wealth these days are not brick-and-mortar but paper valuation.

Ultimately, Dangote’s business “genius” is not necessarily of an intellectual nature but the capacity to see opportunities where most Nigerians whine and bitch about challenges, the ability to follow-through to completion (there were about 28 licenses for private refineries issued BEFORE Dangote’s), and the ambition to dare for the biggest and/or the best - unlike many other Nigerians and Nigerian businesses who seem to operate under the mindset that Nigerians are the children of a lesser God.

eyeview:
This is why am disappointed when ignorant people mouth that the coming on stream of Dangote refinery will bring down the cost of pms. He is a shrewd and exploitative business man, it may even sell higher than 145. The cement sector that was almost handed to him, how far? Instead we now have cement from N850 to N2300 per bag.
The secret is to completely deregulate these sectors to allow multiple competition, including imported ones. No advantage to any.
Imagine dangote locally refining but already saying he will sell at export price

Why do some people keep citing the cement industry as a Dangote monopoly?

Multinational powerhouses have been in the Nigerian cement market decades before Dangote dreamt of his first cement kiln (nor even started importing cement prior to manufacturing). The world’s most powerful cement powerhouses have operated and have remained in Nigeria since the colonial era and well before Nigerian independence. Global cement powerhouses like LaFarge, Blue Circle (since merged into LaFarge), Holcim (also now merged into the merged LaFarge/Blue Circle entity), Scancem and Heidelberg each operated and continue to operate in Nigeria in some form following their global mergers, and continue to compete with Dangote - not only in Nigeria but across Africa, where Dangote not only has to compete with these deep-pocket multinationals but also with local national cement companies. In addition, BUA Group is a strong Nigerian competitor in the cement industry (as well as several other industries that the Dangote Group is in).

Nonetheless, the entry of Dangote into the Nigerian cement manufacturing industry was one of the greatest things to have ever happened to the Nigerian economy. For starters, it forced the global multinational cement powers, that have for the most part been importing most of their cement products from their associated plants abroad and merely bagging same in Nigeria, to refocus into actual manufacturing and to substantially increase their investment in Nigeria, primarily by upgrading and expanding their plants (or building new state of the art plants, as Holcim did in Calabar/Odukpani) and locally mining limestone or using locally-mined limestone raw material. Furthermore, it forced these multinationals to upgrade the quality of their products from the 32.5R cement grade that these foreign companies had supplied since before Nigerian independence in the 1970s or thereabouts to be able to compete with Dangote’s higher-quality products (being the first cement manufacturer to introduce 42.5R graded cement and subsequently being the first producer in Africa to produce 52.5R graded cement).

But perhaps most importantly for the Nigerian economy, Dangote’s entry into cement manufacturing (together with the BUA Group) turned Nigeria from reportedly the world’s second-largest importer of cement (people of our parents’ generation have stories of long flotillas of ships lined up in the waters off the Lagos Ports ladened with cement imports - and in at least one very ‘Nigerian’ instance, sand labeled as cement - in what the Economist magazine dubbed as “The Great Lagos Cement Armada”) into a exporter of cement, and in the process saving Nigeria billions of dollars in foreign exchange, earning foreign exchange for Nigeria from exports, and most crucially creating TENS OF THOUSANDS of direct and indirect JOBS in Nigeria for Nigerians all across the cement value chain (rather than supporting foreign cement industry jobs).

9jaRealist:


The government should not be in the business of building or operating refineries (nor any other business that the private sector can run).

OK SIR

tetralogyfallot:
What an irony if this is coming from somebody that is getting forex far less than market price.

That’s not true. Dangote Group is buying forex from the same CBN forex window as other local manufacturers.

Meanwhile, the group has had to build a private jetty because there is no port big enough to take the equipment required for the refinery, has to build its own power plant in the absence of public electricity supplies, in addition to dredging an area several times bigger than Victoria Island. Embarking on such a massive project takes huge ones - and that’s why no one else in Nigeria (not even the government) has been so ambitious, even though there were at least 28 licenses for private refineries in Nigeria BEFORE Dangote Group acquired its license.

skukimania:


What does it mean?

It means "not being surprised about something you're sure of".

I knew before now (through understanding of basic economics) that Dangote will not sell at subsidised prices, so reading this news is not surprising to me. Hence, anyone can colour me surprise.

Because that is what the government is supposed to do... it helps the economy, it reduces our dependence on forex, it creates demand for our crude by us among other things.

tzoracle:
exactly..

But if his main aim is profit making as a business man why is he being part funded by the FG

I COMPLETELY AND TOTALLY AGREE WITH DANGOTE!

Personally, I am not philosophically opposed to the concept of subsidies (albeit I prefer the subsidization of production or investment over the subsidization of consumption), but as I have previously argued on these pages wrt the “privatized” Nigerian electricity industry where electricity is produced at an average of about N52Kwh and compelled by NERC to be sold at an average of N38Kwh, if government finds subsidies desirable it should provide it directly rather than shift the burden to private producers. The result in the “privatized” Nigerian electricity industry presently is that DISCOs cannot cover their cost and mostly operating at a loss and there do not have equity reserves to invest in the massive repairs, upgrade and expansion of facilities that is badly needed (and that was envisioned by privatization program) nor can they raise debt capital from any bank or other financier with balance sheets are are soaked in red ink - resulting in the mind-boggling conundrum that Nigeria has a reported 2000KW of so-called “stranded” electricity daily (that is electricity generated but which the DISCOs decline to distribute) in a country where there is a desperate shortfall of public electricity supply (and which provides an incentive to continue to sell some electricity to a couple of neighboring countries).

It would have been far easier for the Dangote Group to go into the subsidized imported products business rather than embark on this massively ambitious industrial bell-weather project, because the former is virtually risk-free as it comes with a government GUARANTEED profit (the difference between the landing costs of imported products and the government-fixed pump price). Frankly, with a government license to import petroleum products, one can simply walk into a bank and virtually start counting the money! On the other hand, the Dangote refinery and petrochemical/fertilizer complex will not only save Nigeria the billions of dollars of foreign exchange currently being expended on the corrupt tent-seeking subsidized product import regime, but will in addition earns foreign exchange for Nigeria from exports, and provide THOUSANDS OF JOBS for Nigerians in Nigeria (rather than for foreigner refinery workers in Ireland and/or wherever else Nigeria imports products from), the earnings therefrom which is recycled into the Nigerian economy in the form of goods/services as well as increased government revenues from income and corporate taxes. Accordingly, the Dangote Group should never be placed in the position to lose money on this project solely because of ADMINISTRATIVELY-FIXED pricing, because it would be virtual heresy for Nigeria to create/persist with an economic architecture that rewards importation while effectively penalizing local value-addition, production and manufacturing.

tzoracle:
exactly..

But if his main aim is profit making as a business man why is he being part funded by the FG

He’s NOT being funded by the FG.

He’s BUYING the forex. The CBN merely makes it available through its forex window.