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FG To Sell Oil In Naira To Dangote Refinery - Politics (6) - Nairaland

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Aliko Dangote Offers To Sell Oil Refinery To FG-Owned NNPC / NNPC To Supply 300,000 Barrels Of Crude To Dangote Refinery / FG Grants N16 Trillion Waiver To Dangote, Honeywell, 44 Others (2) (3) (4)

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Re: FG To Sell Oil In Naira To Dangote Refinery by doxijaw: 9:21am On Feb 28, 2021
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.

Genius!

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by Nobody: 9:22am On Feb 28, 2021
brandsoncharlie:

Who told you he will bring in the forex.

The bigot you quoted is somewhat right...he would bring in dollars...since we would hopefully

1.No longer be importing as much petrol as we used to do...danogte coming on stream=more domestic fuel production=less reliance on imports=less dollar outflow from Nigeria.
2.Dangote pays in naira, not in dollars for crude to be refined...a potential source of pressure on the dollar reserve of Nigeria reduced.
Re: FG To Sell Oil In Naira To Dangote Refinery by QuotaSystem: 9:22am On Feb 28, 2021
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.

Amen my brother.

God bless you too.
Re: FG To Sell Oil In Naira To Dangote Refinery by Modarun(m): 9:23am On Feb 28, 2021
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.
that was what they told us when they banned importation of cement. There is no industry left at the mercy of Dangote that ever got better it's either it becomes strictly for the elite or he turns it into something opposite. Some of you always quick to hail the cluelessness of this govt. Other refineries should be sold off cos everyone knows Dangote won't even allow them work again.

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by Nobody: 9:24am On Feb 28, 2021
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.

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.
Re: FG To Sell Oil In Naira To Dangote Refinery by kayjay69(m): 9:24am On Feb 28, 2021
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.
QuotaSystem:


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.
Re: FG To Sell Oil In Naira To Dangote Refinery by Oyiboman69: 9:26am On Feb 28, 2021
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.
but you remembered that dangote's cement is costlier here than outside our shore...if you think the price of petroleum product will be cheaper, then you've not been paying attention.
Ask yourself why is the government not revamping our own refineries even when it is obvious that we have more than one?...it is because the government is dangote and vice versa and that is the monopoly dangote is enjoying today....
Re: FG To Sell Oil In Naira To Dangote Refinery by Nobody: 9:26am On Feb 28, 2021
Modarun:
that was what they told us when they banned importation of cement. There is no industry left at the mercy of Dangote that ever got better it's either it becomes strictly for the elite or he turns it into something opposite. Some of you always quick to hail the cluelessness of this govt. Other refineries should be sold off cos everyone knows Dangote won't even allow them work again.

Well, the only way to stop a Dangote monopoly is to allow marketers set the price of petrol...and government to end subsidy on petrol.

That way it would become profitable to refine petrol in Nigeria, and that means that more and more refineries, small and large would be built here...to compete with Dangote.

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by pat077: 9:26am On Feb 28, 2021
Godarz:


Cement costs high in Nigeria because

1. Bad power supply .

2. Bad road transport and lack of security

3. No railways which means higher teansport costs


4. Fall in Naira due to fall in forex to buffer it
fall in naira? Are they importing the raw materials use in producing cement? As regards the bad road, if they import cement won't they ply the same road?
Re: FG To Sell Oil In Naira To Dangote Refinery by Nobody: 9:27am On Feb 28, 2021
pat077:
fall in naira? Are they importing the raw materials use in producing cement? As regards the bad road, if they import cement won't they ply the same road?

Fall in the value of naira, means that what N65 bought in 2010, N170 will buy today...due to fall in the value of the naira.

In other words...a price increase...with no change in the value.
Re: FG To Sell Oil In Naira To Dangote Refinery by 9jaRealist: 9:33am On Feb 28, 2021
wolement:
At a time when the world is abandoning oil for cleaner energy. What a great move undecided

The world is NOT abandoning oil.
We should reduce global dependence/use of hydrocarbons but it will remain part of the energy mix for decades to come.

Two of the most environmentally-conscious nations in the world, Norway and Canada, each issued their highest-ever number of oil exploration licenses in 2020, while the world’s super powers are presently battling over the Artic’s hydrocarbon resources. There are massive refinery and other hydrocarbon projects currently in the pipeline in EVERY continent/region of the world, with the $43 billion Alaska project probably the largest. Obviously we should join the global movement in developing renewable and alternative energy sources (and of course we are doing so as well), but please do not be fooled into believing that the world will abandon hydrocarbons anytime soon.

Even the electricity for electric cars mostly relies on hydrocarbons (high-pour fuel oil or gas) for its generation.
>

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by QuotaSystem: 9:33am On Feb 28, 2021
IDnoble1:

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

To a reduced extent, they will.

However it is nothing compared to the overhead, subsidy, and other economic costs of importing refined fuel.

Some of us don't realise when we pay for cheaper subsidized fuel, we still pay the difference through reduced funds available to the government for capital infrastructure like roads and hospitals as well as social welfare.
Re: FG To Sell Oil In Naira To Dangote Refinery by 9jaRealist: 9:37am On Feb 28, 2021
tnerro1:

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

We have discovered oil in Lagos.
So we’ll keep “our” refinery (and of course we can always buy crude elsewhere, even Ghana or Chad sef). grin
>
Re: FG To Sell Oil In Naira To Dangote Refinery by Yankee101: 9:37am On Feb 28, 2021
Special treatment already?
Re: FG To Sell Oil In Naira To Dangote Refinery by Nobody: 9:37am On Feb 28, 2021
chrisxxx:

It is this division of state that has kept your state at pauper level.
You limit your reasoning to the boundary of your state. See yourself first as a Nigerian and let your argument be in the defense of Nigerians.
See this one grin I'm from Ikorodu in Lagos state. Tell us where you're from make we know the pauper state between your state and I.
Re: FG To Sell Oil In Naira To Dangote Refinery by 9jaRealist: 9:39am On Feb 28, 2021
Yankee101:
Special treatment already?

How? Is Naira no longer the legal tender of Nigeria?
Or when you go to buy Agege bread, do you use dollars?!
grin
>

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by Yankee101: 9:40am On Feb 28, 2021
CBN had given an N100 billion intervention to the projects
Re: FG To Sell Oil In Naira To Dangote Refinery by tnerro1(m): 9:41am On Feb 28, 2021
9jaRealist:


We have discovered oil in Lagos.
So we’ll keep “our” refinery (and of course we can always buy crude elsewhere, even Ghana or Chad sef). grin
>

Ok na, I will have to invest in MRBMs( if you know the meaning, I go know say u strong well well) grin
Re: FG To Sell Oil In Naira To Dangote Refinery by Yankee101: 9:42am On Feb 28, 2021
9jaRealist:


How? Is Naira no longer the legal tender of Nigeria?
Or when you go to buy Agege bread, do you use dollars?!
grin
>

It's quoted worldwide in dollars. Even your pump price is dictated by its dollar price per barrel

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by surgical: 9:45am On Feb 28, 2021
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.
Dangote does not allow for competition,he is a pure monopolist,he doesn't have what it takes to compete,he uses state power to muzzle out his competitors
Re: FG To Sell Oil In Naira To Dangote Refinery by doxijaw: 9:46am On Feb 28, 2021
For the tramadol/codeine using peeps grin , in simple english, this will deliver u from some unseen enemies.

The corrupt global financial system!

If it works, expect

Jobs
Higher standards of living
Less inflation


If the dividends are re invested, expect

More infrastructure

Which will lead to more productivity.

grin

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by QuotaSystem: 9:46am On Feb 28, 2021
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.

You're asking me our total consumption and at the same time dismissing the answer already provided in barrels per day?

Use your self acclaimed downstream knowledge to do the conversion into gallons or litres.
Re: FG To Sell Oil In Naira To Dangote Refinery by Fundango: 9:47am On Feb 28, 2021
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.
grin
Re: FG To Sell Oil In Naira To Dangote Refinery by pat077: 9:48am On Feb 28, 2021
Godarz:


Fall in the value of naira, means that what N65 bought in 2010, N170 will buy today...due to fall in the value of the naira.

In other words...a price increase...with no change in the value.
i'm not talking 2010, how much was a bag of cement this time last year and how much is it now?
Re: FG To Sell Oil In Naira To Dangote Refinery by brandsoncharlie: 9:49am On Feb 28, 2021
Godarz:


The bigot you quoted is somewhat right...he would bring in dollars...since we would hopefully

1.No longer be importing as much petrol as we used to do...danogte coming on stream=more domestic fuel production=less reliance on imports=less dollar outflow from Nigeria.
2.Dangote pays in naira, not in dollars for crude to be refined...a potential source of pressure on the dollar reserve of Nigeria reduced.
The only thing that will be useful is less dollar outflow from Nigeria according to the report.
For dollar inflow, lie.
Re: FG To Sell Oil In Naira To Dangote Refinery by brandsoncharlie: 9:51am On Feb 28, 2021
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.
So you will tell dangote what to do with his forex. grin grin grin grin.
He won't bring any penny.
Re: FG To Sell Oil In Naira To Dangote Refinery by mariajiwilson(m): 9:51am On Feb 28, 2021
The Anthony Mundine vs Michael Zerafa fight is being shown. Watch Zerafa vs Mundine live
Re: FG To Sell Oil In Naira To Dangote Refinery by Modarun(m): 9:51am On Feb 28, 2021
Godarz:


Well, the only way to stop a Dangote monopoly is to allow marketers set the price of petrol...and government to end subsidy on petrol.

That way it would become profitable to refine petrol in Nigeria, and that means that more and more refineries, small and large would be built here...to compete with Dangote.

there is nothing like subsidy, what we have at the moment is indirect taxing. Govt tax the importers than tell them how much to take out the pockets of Nigerians.
Re: FG To Sell Oil In Naira To Dangote Refinery by 9jaRealist: 9:51am On Feb 28, 2021
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.

Because, while most Nigerians keep driveling on that the government should “create jobs”, governments actually do not create jobs (that is, outside of the administrative/regulatory bureaucracy). Rather, it is the PRIVATE sector that actually creates the most jobs and apparently “this government” (which admittedly is clueless and inept in so many ways) recognizes that and I’d creating the proverbial “enabling environment” for Dangote and folks like him to create jobs. This refinery, petrochemicals and fertilizer complex will not only create thousands of JOBS IN NIGERIA FOR NIGERIANS (both direct and indirect), but it’s products (such as the petrochemicals and the fertilizer) would feed other industries in Nigeria that would (or should) thousands of other JOBS IN NIGERIA FOR NIGERIANS! And Nigeria’s salvation lies in JOBS fir its teeming youths.
>

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by QuotaSystem: 9:52am On Feb 28, 2021
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.

You're right on the money my friend.

I just pray we are bestowed with the right leadership to continue and improve on this trajectory.

1 Like

Re: FG To Sell Oil In Naira To Dangote Refinery by Modarun(m): 9:53am On Feb 28, 2021
Godarz:


Well, the only way to stop a Dangote monopoly is to allow marketers set the price of petrol...and government to end subsidy on petrol.

That way it would become profitable to refine petrol in Nigeria, and that means that more and more refineries, small and large would be built here...to compete with Dangote.

a look at his Monika should tell you he can't reason things through.

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