Optional09:
Crash am first now and stop spending the money you have not earned Ha!

What’s the Dangote refinery maintenance and expansion plan for the next 50years that what i want to see

In the next 50yrs, many of us here including yourself would have been dead

Ezmans:
Awalokan batstards have reappear on naira land today because of dangote personal business am ashame of them

they are talking to themselves 😆

Something they know will never happen, as long as the criminals they defend are still in power.
Stupid agbadorians.

xprojectlive:
sell ur dollars now

It seems you don't know how Nigeria thing dey end, after 2months, you will see the story they will tell the masses. As it stands, dollar will keep rising because the economy is already in mess

ednut1:
the crude oil they are giving dangote will reduce CBN Fax earnings tho

That's what I keep telling them. It's almost like subsidy through the backdoor.

It could potentially improve the current value.
This is what Dangote PMS mean:
- reduced or outright stop to PMS importation
- We do not need to put pressure on our FX reserves. Hence, the 40% relief from reserves.
- Nigeria still would export crude so we still have dollar inflow to the reserve.
- With pressure off the reserve the CBN can potentially defend the floated naira better.

This is all hypothetical, provided the NNPC does not come up with its usual strange excuses and announcements.

If you believe in forecast for Nigeria, it means you don't really understand the country.

For anyone to believe anything from Nigeria, it has to materialize first!
Any other thing na wishful thinking. If it hasn't happened yet, don't believe it

I will revisit this thread in December.

Hopefully it should be good news for Nigerians.

Yes it will crash the dollars and strengthen the naira..the refinery if working in full stream will will stop the government from importing fuel which will save Nigeria 2 billion dollars spent on Importation of fuel monthly and fuel and disel and other petroleum products will be exported for sale to other foreign countries which will generate foreign currency, dollars into Nigeria and crash the dollars and strengthen the naira against the dollars

Post below is one of the reasons Nigerians ended up with a person of criminal background and corruption minded fellow as a president.....half education!!

Someone pointed it to you that the value of the currency was not determined by market forces, rather the government deliberateky kept it that low to achieve their targets, the dumb in you is expecting market foces to alleviate that?? How stupid??

Dangote selling all the fuel in naira to NNPC as mandated by the government will not afffect the USD supply and so will have zero effect on the exchange rate, except he sells to other countries and if he does that, like a typical and rational entrepreneur, the money is not coming to boost the coffers of the govt of Nigeria. It will most likely be kept in his offshore accounts so that it is easier for him to use whenever he requires forex to settle his foreing obligations or other financial acqusition needs, rather than bring to Nigeria, sell and then have to source for scarce forex again to take care of his foreing obligations.

There would be those who think it will reduce the pressure on forex demamd in Nigeria since people wont be needing that to omport forex. Unfortunately, i am afraid to disappoint those as only NNPC imports now and it uses foreing line of credit to do that rather than buy USD from the local marlet.

Don't let anyone deceive you it woukd have zero or little impsct on exhange rate.

Mark this post and cone back in 3 months,there would be another set of lamentations by some of you.

Ikaeniyan0:
So because it was devalued, it now means it can't gain value again?

There's a reason the government devalued the naira twice and I doubt you know why

The pressure on the naira will really reduce because we won't need to be spending billions of dollars on importing petrol again.

xprojectlive:
sell ur dollars now

/
Next FOMC meeting is on September 17-18, 2024 when JPowell is expected to announce the reduction of US interest rate and the monetary policy goíng forward. It is expected to impact the US dollars.

So Dangote ain't got nothing to do with monetary policy or naira vs US dollar exchange rate if this happens. All other currencies may witness a boost against the dollars then as well.

But then knowing the Nigerian government and her penchant for propaganda, they may want to take the credit.
/

It will not change anything.

What you have written below clearly shows you dont know how the importation is ran.

NNPCL as the sole importer does not source for forex from the local marlet. It uses a line of credit.

fatboyslym007:
It could potentially improve the current value.
This is what Dangote PMS mean:
- reduced or outright stop to PMS importation
- We do not need to put pressure on our FX reserves. Hence, the 40% relief from reserves.
- Nigeria still would export crude so we still have dollar inflow to the reserve.
- With pressure off the reserve the CBN can potentially defend the floated naira better.

This is all hypothetical, provided the NNPC does not come up with its usual strange excuses and announcements.

Very dumb analysis

Importation is on line of credit by NNPCL and not sourced from local forex market.

ufotunang:
Yes it will crash the dollars and strengthen the naira..the refinery if working in full stream will will stop the government from importing fuel which will save Nigeria 2 billion dollars spent on Importation of fuel monthly and fuel and disel and other petroleum products will be exported for sale to other foreign countries which will generate foreign currency, dollars into Nigeria and crash the dollars and strengthen the naira against the dollars

KaLuCh:


Do you understand that our currency was devalued?




Kindly educate me on why the naira was devalued twice.

Scratching my head. Oh I think I get it. We needed so much naira to buy dollar that we decided the natural thing will be to further reduce the value of naira so we can get even less dollar with it? Genius!!!

Back to topic. 40% of the demand on FX is projected to be eliminated. So we have 40% suplux. The CBN would loose approximately 25 to 35% influx of FX via local currency sales of Crude oil, leaving us at about 5 to 15% suplux. And it is safe to say that other economic factors will easily mop up that suplux but let's say it doesn't. You really think this is the magic wand we need to wave and fix the Naira?

I think not.

Bro do you really think people you are trying to educate have brain. If you want to know what I'm trying to say, this post you made, they will match it with insult. You are wasting your time

Daft analysis

Only NNPC imports fuel into Nigeria and it uses its line of credit. Local marketers buy from NNPC. It has nothing to do with the exchange rate.

Get educated.

PARADIZEPRIEST:
IF LOCAL MARKETERS BUY FUEL FROM DANGOTE WITH NAIRA,DEMAND FOR DOLLARS TO IMPORT PETROL WILL REDUCE BY PERCENTAGE THE DEMAND IS MET

[author=flokii post=131836015]Are people still hoarding dollars with the way economy is recovering gradually?.. Once demand for FX drops, the high exchage rate too will drop.
How I wish PBAT Government can tackle importation and let's move from consumption (import dependance) to production (industrialization). This will make naira gain massively in the FX market. Exchange rate can reduce to less than #500 to a dollar.[/quote] [author=flokii post=131836015] [s]Are people still hoarding dollars with the way economy is recovering gradually?.. Once demand for FX drops, the high exchage rate too will drop.[/s]
How I wish PBAT Government can tackle importation and let's move from consumption (import dependance) to production (industrialization). This will make naira gain massively in the FX market. Exchange rate can reduce to less than #500 to a dollar.[/quote]

[s]If you can, buy more and store away from Nigerian banks[/s]

Stop exposing your ignorance and half education, please.

flokii:
Are people still hoarding dollars with the way economy is recovering gradually?.. Once demand for FX drops, the high exchage rate too will drop.
How I wish PBAT Government can tackle importation and let's move from consumption (import dependance) to production (industrialization). This will make naira gain massively in the FX market. Exchange rate can reduce to less than #500 to a dollar.

Lol.... this is how Nigerians reason.

Half education.

No wonder they are being taken for a ride by a crimiinal as their president

Ikaeniyan0:
The pressure on the naira will really reduce because we won't need to be spending billions of dollars on importing petrol again.

The CBN will now have more dollars at their disposal

xprojectlive:
sell ur dollars now

You think the principalities and powers that are holding Naija back will go down without a fight? 😂
You were born to meet NEPA, NNPC, Ajaokuta and all government infrastructure never works, this is the only way these demons can feed.

Dangote better get ready for more fights for daring to change the status quo, or you think it is a coincidence that fuel is scarce and expensive now that dangote is buying crude in Naira and refining at home? They want to make it hard for him to sell cheaper in his own country.

The dollar ain't dropping anytime soon, because these vampires can't stop sucking

xprojectlive:
sell ur dollars now

highly dependent on who really owns that refinery the way the developed countries operate they have shell companies than might be a major shareholder you will never know..if that is the case they will keep remitting dollars to the real shareholders..meaning nigeria has been sold and what we have is task masters...I hope this isn't the case cos of it is no more hope for redemption and Nigerians yet unborn will be slaves In their own land.

The ice on the cake. Nice analysis. Beautiful economy understanding

KaLuCh:


Do you understand that our currency was devalued?




Kindly educate me on why the naira was devalued twice.

Scratching my head. Oh I think I get it. We needed so much naira to buy dollar that we decided the natural thing will be to further reduce the value of naira so we can get even less dollar with it? Genius!!!

Back to topic. 40% of the demand on FX is projected to be eliminated. So we have 40% suplux. The CBN would loose approximately 25 to 35% influx of FX via local currency sales of Crude oil, leaving us at about 5 to 15% suplux. And it is safe to say that other economic factors will easily mop up that suplux but let's say it doesn't. You really think this is the magic wand we need to wave and fix the Naira?

I think not.

flokii:
Are people still hoarding dollars with the way economy is recovering gradually?.. Once demand for FX drops, the high exchage rate too will drop.
How I wish PBAT Government can tackle importation and let's move from consumption (import dependance) to production (industrialization). This will make naira gain massively in the FX market. Exchange rate can reduce to less than #500 to a dollar.

The appetites of Nigerian politicians is a massive sinkhole that can never be filled - even if Nigeria warns $100 Billion a day loop from export, those that will steal all that earnings are waiting on standby to steal every penny of it

Odua4life:
40 percent demand for dollars is gone

"Gone"

xprojectlive:
sell ur dollars now

Dey play
You think Nigeria situation answers to economic gymnastics

Ikaeniyan0:
So because it was devalued, it now means it can't gain value again?

There's a reason the government devalued the naira twice and I doubt you know why

The pressure on the naira will really reduce because we won't need to be spending billions of dollars on importing petrol again.

See theory, Nigeria will humble you n your theory, just give it time

This same Country humble the following theories

Privatisation
Subsidy removal
Currency devaluation
Eat what you grow

Blazetrailer:
Very dumb analysis

Importation is on line of credit by NNPCL and not sourced from local forex market.

,you say..on line of credit by NNPC... the fuel NNPC is importing on credit from the foreign countries they are importing from and owing the the foreign fuel suppliers 6 billion dollars as debt.. and the foreign fuel suppliers refuses to supply fuel to NNPC because of the 6 billion dollars debt , NNPC is owing them.. which is now causing the fuel scarcity nigerians are suffering now and fuel sold at 1000 naira a litre in fueling stations now .,is this one good for the economy....and the debts of 6 billion dollars will still be paid in dollars which is scarce in Nigeria and depreciating the naira and make it lose value against the dollars

Stupid question from the silly citizen

Depending on Dangote..is like a person waiting for the blinking of a Crab by the riverside, he/she will actually wait longer...



Word for the wise

Blazetrailer:
It will not change anything.

What you have written below clearly shows you dont know how the importation is ran.

NNPCL as the sole importer does not source for forex from the local marlet. It uses a line of credit.

Ok.
Kindly enlighten us... Since you know how the importation works... Please add in your explanation the relevance or irrelevance of the following pre-events.
- FG approves sale of crude oil to local refineries (incl. Dangote refinery) in Naira
How would this now put pressure on our FX reserves?
- what is the link between FX reserves, local currency in circulation and FX value of naira?
- NNPC being to sole dealer for the Nigerian market.
How does this affect NNPC line of credit in FX.
Are we importing crude for Dangote for us to require FX.
- How would you resolve the 450k barrels for local refineries from our crude oil exploration?
- Are these also in the line of credit you talked about?

Kindly enlighten us sir...
Thank you for your immersed knowledge and expertise

OkCornel:
Caveat: until NNPC is consistently supplies Dangote refinery crude oil at a fixed naira price, it’s too early to sell off your dollars.

If NNPC screws up the crude oil supply, Dangote will have no option than to source for forex to import crude oil, and you know what that means for the naira.

Verdict: Wait till the government consistently supplies Dangote refinery crude oil for the next few months.

Dangote won't need to source for forex he would be earning Dollar by exporting his products

thedio:

Dangote won't need to source for forex he would be earning Dollar by exporting his products

Valid point, sufficiency of his forex reserve would be something to consider.