Ghanaian man who dresses in a suit to hawk water melon around Madina in Ghana's capital ( photo )
The 25-year-old is a primary school teacher and sells watermelon during weekends and when the school is on vacation. He is saving up to buy an oven and wants to one day own his own snack bar.
Daniel said;



"My pastor always says dress well no matter the job you do, so I decided to wear a suit. Some laugh at me, others encourage me and are willing to help me"

Daniel says his dressing gives him an edge which helps him make 100 % profit after sales

"I make 100% profit. I think it is because of how I dress, people notice me easily and want to buy from me," Mr Nartey said.

more photo >>>>http://www.mouaue.com/2015/05/ghanaian-man-who-dresses-in-suit-to.html

Sorry to say this but the op is very dull. U talk about comparative advantage without indicating and arguing out what makes any situation or business perspective disadvantageous to Nigeria. To have a comparative advantage in any sector is purely dependent on good policy governance and policy implementation. The countries u mentioned how did they achieve advantages except through what I listed above. Let's stop telling stories and giving excuses for our failures as leaders and followers in managing our resources and Turning them into dividends for the benefit of the average Nigerian. Any theory can be proven to be true as u just did beautifully. But not all theories are true nor validatable. Cheers

Am I the only one who thinks this analysis revolves around just one central idea? I expected to see an indepth analysis, only to meet this. Sorry man, this is no reason, it's rather an excuse. So basic!

Wow!!! This ought to make the front page[color=#006600][/color]

Will Buhari and his Tam David West -type of advisors read and understand this? People believe that government must control everything.

why can't the oil business be as basic as cassava and garri business?

a

Firstly, the OP failed to acknowledge that corruption is the main reason why refining our own crude is more expensive than imported fuel.

Secondly, all other OPEC members refine their crude to give fuel to their citizens at far cheaper price than us. How come they didn't export their crude and import refined fuel in return.

You have good points but if we dnt kill corruption in the system, we cant make it.our rulers know what is right,but they chose to do the one that ll fill their pockets with stolen money. Even if God himself gives us the plan himself,if corruption runs it,it wnt work. CORRUPTION AND SELF-INTEREST ARE OUR PROBLEMS.

Nice write-up.I was able to get an insight as to hw cumbersom d process is bt I believe government can find a way arnd it to make life a lot easier for us if they realy mean biz. Problem is d solution to ds whole thing would deny a li2 % of nigeria d opportunity to gather excess wealth, hence they com up wt one business grammar dat ll dash d whole thing. God help Nigeria.

Very articulate and mind clearing analysis. God bless you for sharing with us.

Dear Entrepreneur,

This is a short introduction on how to establish a very profitable LPG home delivery company.
Currently, LPG is sold to retailers between N1900- N2200 for a 12.5kg cylinders. The road retailers sells back to us the consumer between N2900-3500). Isn't this profitable?
Now imagine you operate a Home delivery "shop" different from the traditional road Side shop.
A delivery of LPG cylinders (exchange service only) at customers door step to provide solutions to the problems and bottlenecks which customers face during and after purchase of LPG with a good branding work on all the value chain processes invloved(cylinders, staffs, delivery van, safety equipments & gears, papers, website, manuals, PR, marketing campaigns etc).

The home delivery business model would be similar to that of Jumia or Konga

Below is an overview on how to set-up this business.

■ Overview
=========
Propane or liquefied petroleum gas (LPG) popularly called "cooking gas" is a hydrocarbon produced from natural gas and crude oil refining. A nontoxic, colorless, and odorless gas, the 1990 Clean Air Act and the Energy Policy Act of 1992 approves propane as one of the cleanest burning of all fossil fuels and Nigeria has this gas in abundance.

To start a propane home delivery business entails purchasing portable propane cylinders from manufacturers or bulk dealers, storing the cylinders, and selling them to retail customers such as homes, restaurants, farms and others by delivering them to the customers door step.

The core of the business is developing a customer base and delivery of the standard 12.5kg propane cylinders to
residential homes, and delivery of 50kg propane cylinders to commercial clients such as restaurants, caterers construction companies, hotels and office complexes based on order.

This business is very profitable in Nigeria and currently, gas is been purchased from the refilling plant between N1900-2100 and then resold for N3000-3500 making a profit of over N1000 per 12.5kg cylinder.


■ Business Scope
===============
Propane is often cheaper than electricity , convenient for use, and available in abundance. Such factors account
for its widespread use for cooking in over 40million homes in Nigeria and establishments.

The major uses of propane are:

1. In homes and commercial establishments majorly for cooking, heating swimming pools, operate furnaces, water heaters, air conditioners, outdoor grills, washing machines, and other appliances.

2. To fuel vehicles. Refueling propane and gasoline vehicles take the same time but the cost of propane is
typically less than conventional gasoline.

3. To fuel cooking appliances, such as those used in restaurants.

4. To operate propane-driven forklifts and fleet vehicles.

5. To control pests, dry crops, and power irrigation pumps on farms.

6. To cook food out-of-doors and power outdoor devices.


■ Exploratory Study
================
Every business has its own particular challenges and obstacles, and a propane distribution business is no different. The entrepreneur first needs to undertake a SWOT analysis and prepare a BUSINESS PLAN to start a propane business.

The exploratory study for a SWOT analysis and BUSINESS PLAN should include:

1. Understanding how the industry functions, including capital required, profit percentage, average expected cash flow and the like.

2. Identifying wholesale distributors or refillers of propane. The main criteria for evaluating suppliers should be pricing, reliability in supply, and transportation costs.

3. Identifying transportation, and distribution methods. (Type of delivery truck, capacity and distribution route)

4. Identifying storage areas.( A place to store your cylinders)

5. A good understanding of the various regulations, especially safety standards governing propane businesses,
including the entrepreneur’s obligations. (DPR licensing)

6. Selecting an area and identifying the extent of competition in the area. The best approach when starting out is to concentrate on a particular customer type in a particular area, and then gradually expand the net.

7. Possible impact of future technological breakthroughs and changes in regulations.

8. Estimating start-up costs and cash flows. It may cost between N3million and N6million to start a propane home delivery business.

One good idea is to seek advice from existing business owners or researchers. People who are in the business in a non-competing area may readily share experiences and provide valuable practical tips and insights often overlooked during theoretical studies.


■ Legal Registration
=================
Once the exploratory study is over and the entrepreneur has a good idea of what the propane home delivery business is about, the next step to start a propane business is securing statutory approvals.

Unlike other businesses, legal registration for the propane home delivery business is easy and is not a major challenge in starting a propane home delivery business. Apart from the usual CAC registration and tax clearance, you need to obtain a DPR licence to operate.

A far amount of risk is carried when you start a propane home delivery business. For this reason, the entrepreneur needs to:
1. Register the business as a corporation or Limited Liability Company to protect the entrepreneur’s personal assets.
2. Purchase insurance. Insurance is mandatory and many permits and license for this business require the entrepreneur to show proof of insurance.
3. Registering for tax purposes.


■ Getting Started
==============
After securing statutory clearances comes implementation of the business plan. This includes:
1. Confirming the suppliers or franchisers and executing an agreement for supply of propane cylinders with them.
2. Setting up of the storage space for propane cylinders and making it compliant with the safety regulations in force.
3. Arranging for trucks to transport the propane cylinders.
4. Establishing office space for administrative tasks including the setting up of computerized inventory, accounting, and order tracking systems.
5. Hiring the required assistants, especially to oversee the propane storage space and deliver the propane cylinders.
6. Establishing retail space by which customers can contact the business. This includes setting up a front
office, making websites, and arranging for telephone numbers and email contact.

Once these steps are in place, it is time to start the business. The order quantity and inventory depends on the business volumes. An approximate stock of 100 cylinders should suffice during the initial stages.


■ Advanced Considerations
======================
The following considerations also require attention at the time of starting the business:
1. Providing employees with the required training.(how to handle cylinders, Customers care service & relationships)
2. Establishing a customer base by contacting local homeowners, shops, commercial establishments, farms, and other places that require LPG. The presence of competitors would require either reducing prices than what the competitors offer and or providing some value added service not provided by the competitors.
3. Undertaking various outdoor advertising activities such as purchasing billboard space, distributing fliers, placing notices at grocers and community centers, using direct mail and search engine optimization techniques.

Cost of purchasing the professional business plan from us is N40, 000
(Business plan has been professionally written to secure a bank loan or attract investors)

Order now!
Phone/Whatsapp: 08029716876
Columella Nigeria Company.

For me i strongly believe what we need is to start refining here, so that we can power industrialization, leave competition for now. Let government divert the subsidy into making the refinery works. There is no how you would not have increase employment, and enhancing other indirect business by the time we have refinery woerking

phransix147:
What works in Nigeria sef?

Corruption.

Wait Make I go ask dangote,Otedola,and Adenuga why our Refineries no work

kilmix:
Kill the cabal and see how our refineries will bounce back.


But how do we kill the cabal?

they are sick already
d defeat of PDP was a virus
change is here!!!
God help d decision makers

And who is telling us this.

OP. You are so on point. Let them be running round in politically induced circles. What is madness if not a 40 year repetitive error. Government has no business in business. Scrap NNPC 30 years ago. Nuff said about the curse called oil a.k.a 'devil's dung'.

OP are we mandated to follow OPEC rules to sell crude oil locally at export prices.

What is the profit margin between operational cost, overheads and current export pricing at $50

I read only two paragraphs of your epistle and all I could decipher is that you are one of the many Nigerians who dont deserve to get to the promise land because you are a victim of corruption. lemme go and complete the reading before I retract or give you the full dose of your melecine

I give up! your write-up is nauseating, could only manage five paragraphs. my advice is get a complete overhaul of your mental faculties.

in a nutshell I believe that what happens in the international markets shouldn't control us. if we play our cards right, we can run the international market since we have the crude ( check the arabian countries). building a refinery cost money, the question is; does Nigerian government have the money? YES.

away with your backward thinking mentally

The whole thing looks like a yam farmer with many tubers but, buys poundo yam each time he feels like eating pounded yam. What stops him from pounding, even with the aid of a machine? Our refineries, as we've been made to believe, do not produce to maximum capacity or not producing at all keeps making the government insists it buys PMS, AGO, etc. Till date nobody has been able to counter Tam David-West who insists that the our refineries produce refine products that can meet our local need. Why then do we still import refined products?

Very true OP, I am sure baba was aware of this before he decided to contest. So he will correct all anomalies and Nigeria will work. Don't worry.



On a second thought, weren't Nigerians made to beleive GEJ was the reason our refineries aren't working. @ least that was what was portrayed to the Nigerian populace.

It better not be another denial of promises made by the incoming government. If they give their words, they'd better deliver or their balls will be broken. No excuses.

Too much of everything is just bad this include education and certificates, this is one reason that too much educated people get employed and less educated people employ them. This is the trend in the world and it can never change. The over educated man will analyse analyse, peruse and criticise something before an action is take. But the less educated man will fold his sleeves gives it a trial, that is why today we have the COSCHARIS,DANGOTES, FACEBOOK, JOBS, ETC these dudes have little education and they employ these so called book worm and they blow grammer.

That is by the way, why am taking time to tackle this, I see people saying this is a nice article I just laugh..What is nice about this article and the writer. To me he is just swriting bunkum and bullshit I must be frank. What is so special about refining crude oil. It is simple elemnatary chemistry. For thos of us that studied chemistry and did practicval. I mean those that went to good schools and I appreciate the school I attended in imo state with the best lab. That is by the way the principle of refining oil is called fractional distillation and the experiment is simple not rocket science and I wonder why Nigeria can’t build packets of small refineries with small capacities for each state. I wonder how Nigeria won’t allow individuals to fabricate refineries with small capacities to service state. Some person is making a presentation with diagram
For heaven sake Biafra forces drilled and refined their oil under war conditions and these refineries were a mobile and dismountable ones and they powered their aircrafts with that and their tanks so what is even special about refining this crude, ordinary fractional distillation. Go to creeks and see how local illiterates are refining oil with drum and for those of us that is impressed with this grammar let me break it down for you how fractional distillation works …..Fractional distillation is the separation of a mixture into its component parts, or fractions, such as in separating chemical compounds by their boiling point by heating them to a temperature at which one or more fractions of the compound will vaporize.
Funny enough crude oil refining is even simple distillation and I keep asking how and why we cant just think. The core refining process is simple distillation . Because crude oil is made up of a mixture of hydrocarbons, this first and basic refining process is aimed at separating the crude oil into its "fractions," the broad categories of its component hydrocarbons. Crude oil is heated and put into a still—a distillation column—and different products boil off and can be recovered at different temperatures. The lighter products—liquid petroleum gases (LPG), naphtha, and so-called "straight run" gasoline—are recovered at the lowest temperatures. Middle distillates—jet fuel, kerosene, distillates (such as home heating oil and diesel fuel)—come next. Finally, the heaviest products (residuum or residual fuel oil) are recovered, sometimes at temperatures over 1000 degrees F. The simplest refineries stop at this point. Other refineries reprocess the heavier fractions into lighter products to maximize the output of the most desirable products.
Just know that the cabals or bunch of mudaphukers will paint the picture that refining crude is just a sophisticated thing but igbos have done that ages and Nigerian can grasp it, the reason why refinaries wont work is simple, Nigerian intellectual laziness and dirty tendencies and also inability to think out of the box and finally we have been ruled by bunch of donkeys in the name of rulers and leaders. What is in refining oil. Get a container set it heat and at a particular temperature PMS comes out and a particular temperature DPK and other products come out. If they cant get it right they should consult the Biafrans if they are proud to do this they should consult the creeks boys in Bayelsa, I shouldn’t be teaching you chemistry but the truth must be told, kabals wont allow the refinery to work…SIMPLE

BREAK DOWN OF SIMPLE REFINARY
The most important refinery product is motor gasoline, a blend of hydrocarbons with boiling ranges from ambient temperatures to about 400° F. The important qualities for gasoline are octane number (antiknock), volatility (starting and vapor lock), and vapor pressure (environmental control). Additives are often used to enhance performance and provide protection against oxidation and rust formation.

Kerosene is a refined middle-distillate petroleum product that finds considerable use as a jet fuel and around the world in cooking and space heating. When used as a jet fuel, some of the critical qualities are freeze point, flash point, and smoke point. Commercial jet fuel has a boiling range of about 375°-525° F, and military jet fuel 130°-550° F. Kerosene, with less-critical specifications, is used for lighting, heating, solvents, and blending into diesel fuel.

Liquified petroleum gas (LPG) consists principally of propane and butane and is produced for use as fuel and is an intermediate material in the manufacture of petrochemicals. The important specifications for proper performance include vapor pressure and control of contaminants.

Distillate fuels such as diesel fuels and domestic heating oils have boiling ranges of about 400°-700° F. The desirable qualities required for distillate fuels include controlled flash and pour points, clean burning, no deposit formation in storage tanks, and a proper diesel fuel cetane rating for good starting and combustion.

Residual fuels are heavier oils, known as No. 5 and No. 6 fuel oils, that remain after the distillate fuel oils and lighter hydrocarbons are distilled away in refinery operations. Many marine vessels, power plants, commercial buildings and industrial facilities use residual fuels or combinations of residual and distillate fuels for heating and processing. The two most critical specifications of residual fuels are viscosity and low sulfur content for environmental control.

A variety of solvents, whose boiling points and hydrocarbon composition are closely controlled, are produced in refineries. These include benzene, toluene, and xylene.

Petrochemicals are products derived from crude oil refining, such as ethylene, propylene, butylene, and isobutylene, that are primarily intended for use as chemical feedstocks in the production of plastics, synthetic fibers, synthetic rubbers, and other products.

Lubricants are produced in special refining processes. Additives such as demulsifiers, antioxidants, and viscosity improvers are blended into the base stocks to provide the characteristics required for motor oils, industrial greases, lubricants, and cutting oils. The most critical quality for lubricating-oil base stock is a high viscosity index, which provides for greater consistency under varying temperatures.

Coke is a residue high in carbon content and low in hydrogen that is the final product of thermal decomposition in the condensation process in cracking. It is almost pure carbon with a variety of uses from electrodes to charcoal briquets.

Asphalt is dark brown-to-black cement-like material obtained by petroleum processing and containing bitumens as the predominant component. It used primarily for road construction and roofing materials, and thus must be inert to most chemicals and weather conditions.

change is here
sai buhari will fix in in 100 days
my favorite magician

Sunnybobo3:
Refineries! Refineries! Refineries!

If I got N100 every time I heard the question, “How can a country blessed with one of the largest reserves of crude oil be importing fuel?”, I would be a millionaire. That question is built on the idea that a country that has crude oil should naturally be refining crude oil. It turns out that is not the case as we are learning the hard way. The reasoning is very simple. To understand this let us examine a simplified oil industry as in Picture 1 below.

The business of having crude oil and turning it into fuel to put in your car, or generator, actually involves five different industries. The first is the business of finding and having crude oil. The second is the business of getting that crude oil out of the ground. The third is the business of transporting that crude oil to refineries. The fourth is the business of refining the crude oil, turning into fuel and other products. The fifth is transporting the refined fuel to your filling stations so you can fill up your tank.

Which of these industries does Nigeria have an advantage? Only one. The business of having crude oil. We have crude oil and many others don’t. Does Nigeria have an advantage in the business of getting crude oil out of the ground? Not really. It is of course cheaper to drill oil in Nigeria than it is to extract shale oil in Canada. However if you think of the advantage in terms of Nigerian firms vs foreign firms drilling for oil in Nigeria then there is no real advantage. Although we have tried to rectify this by making that section of the industry very hostile to foreign firms. It is kind of working but the side effect of that strategy is the increase in costs for all firms. Which is not necessarily a good thing but more on that in a bit. Do we have an advantage in the transporting of crude oil? No. Do we have an advantage in the refining of crude oil? No. Marketing? No. So in essence the only part of the industry that we have a real advantage is in having crude oil.

Now think of things from the marketers and distributors perspective. They are the ones who really make the decisions on whether fuel will be imported or bought locally. Two major factors guide their decision to import or source locally. First the fuel has to be available to buy locally. Secondly the fuel refined locally needs to be cheaper than if it was bought on international markets. Even if local businesses refine fuel, it needs to be cheaper than imported fuel, else fuel would still be imported.

In general fuel will be imported if it is cheaper on international markets compared to local markets. Does having crude oil imply that it would be cheaper to refine locally? The answer is no. Many countries may not have crude oil, but every country can buy crude oil. If any country can buy crude oil then having crude oil is not really an advantage. International fuel markets are highly competitive given that any country can buy crude oil, refine it and sell. So if the local industry cannot compete on efficiency and costs then fuel will be cheaper on international markets. And marketers will opt to import fuel rather than buy locally. Which then means your local refineries will disappear.

Why can’t our local oil industry compete?

The next obvious question is why our local refineries cannot compete with international players. The simple answer is the way our local industry is structured. Picture 2 below explains it perfectly.

Basically the NNPC and its subsidiaries run the entire oil industry. Prices across the entire industry are also set by the government, with the exception of the export price of crude oil which is beyond its powers. In essence you have the perfect worst case scenario for business. On the one hand you have a government corporation controlling everything from oil drilling, to crude oil pipelines, to refineries, to fuel pipelines, to marketing and distribution. On the other hand you have a government that sets prices of everything from the retail price of fuel to pipeline use chargers etc. Yes there are independent private players across the industry but most are mandated to partner in some form with the NNPC. The result of this industrial structure is an entire local industry that cannot compete with international players. First there are almost no legal private refineries. So we are not even at the point where locally refined fuel is available but more expensive. It is not even available. The government owned refineries are unsurprisingly in a state of perpetual turn-around maintenance. And so we import.

So what is the plan?
According to most the plan for the oil industry revolves around the petroleum industry bill. The bill aims to break up the NNPCs hold on the oil industry and make it look something like this see picture 3 below.

The idea is to break up the industry into bits to reduce some of the corruption and lack of transparency. Disclaimer: there are many other agencies in the PIB not in the diagram above. Plus the positions of the new agencies in the industry are not as rigid. Will this new structure lead to the resurgence of refineries? Probably not. The new refineries will still have to compete with international players and it is not clear that they will be able to do so. The PIB also doesn’t say much about deregulation implying that the government still plans to keep the price controls. All this implies that the post PIB oil industry will probably not  be able to compete with international players. Which means we will probably still import fuel.

What do we need to do to have a fighting chance?

First we need to get rid of the idea that government run refineries can work if we just try harder. They can’t. And even if by some kind of miracle they did finish their perpetual turn-around-maintenance, they cannot possibly compete with international players. Its difficult to imagine a scenario where government run refineries will be more efficient and reliable than the cut throat international market.

Second, pricing across the entire industry needs to be deregulated. The government needs to allow a more efficient market driven pricing structure from intermediate supply contracts to the retail end of the industry. Given that we know government run refineries cannot possibly compete, the only alternative is private refineries. But private refineries will not move anywhere near an oil industry where the prices are dictated by the government. Consider the current scenario where the private refineries have to buy crude oil at international prices but sell their refined products at the government mandated prices. No private player will knowingly enter a guaranteed loss making business.

Third, we need to use the natural advantage we have to tip the scales in favor of domestic use of crude oil. Recall the part of the industry we actually have an advantage is in having crude oil. And the determining factor influencing importing or domestic refining of fuel is the relative price. Selling fuel to private domestic refineries at a discount could provide the necessary incentive to build a refinery. Of course by discount I do not mean a fixed price for crude sales to local refineries but a fractional discount. So actual prices paid will still move in tandem with international prices. How much of a discount should be given? Obviously not a Tam David-West style discount where he argues to just give away crude oil for free. Intuitively the discount should be less than the welfare gains from jobs created in refining, Forex savings from not having to import  fuel, and perhaps even gains from becoming a fuel exporter. If the discount is larger than the potential gains then its really just a net loss for the entire country.

Finally we need to think small and long term. The government seems to be stuck on the idea of few giant players with giant mega refineries and short term profitability. Nothing wrong with having big players but small players might be key to a fluid and flexible domestic industry. Strategies for multiple small players need to be explored. Small scale refineries with long term crude oil discount deals and expropriation risk guarantees might be the best shot we have at domestic refining.

Irregardless of these ideas it may be that the myriad of problems make domestic refining in Nigeria impractical. Oil refining is after all a cutthroat business globally with relatively small margins. It would be a shame though if we can’t make it work somehow.


https://nonsoobikili./2015/05/10/refineries-refineries-refineries/?utm_content=buffer0fc5f&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

Na wa ooo

nortcentrallord:
Very true OP, I am sure baba was aware of this before he decided to contest. So he will correct all anomalies and Nigeria will work. Don't worry.



On a second thought, weren't Nigerians made to beleive GEJ was the reason our refineries aren't working. @ least that was what was portrayed to the Nigerian populace.

It better not be another denial of promises made by the incoming government. If they give their words, they'd better deliver or their balls will be broken. No excuses.

Too much of everything is just bad this include education and certificates, this is one reason that too much educated people get employed and less educated people employ them. This is the trend in the world and it can never change. The over educated man will analyse analyse, peruse and criticise something before an action is take. But the less educated man will fold his sleeves gives it a trial, that is why today we have the COSCHARIS,DANGOTES, FACEBOOK, JOBS, ETC these dudes have little education and they employ these so called book worm and they blow grammer.


That is by the way, why am taking time to tackle this, I see people saying this is a nice article I just laugh..What is nice about this article and the writer. To me he is just swriting bunkum and bullshit I must be frank. What is so special about refining crude oil. It is simple elemnatary chemistry. For thos of us that studied chemistry and did practicval. I mean those that went to good schools and I appreciate the school I attended in imo state with the best lab. That is by the way the principle of refining oil is called fractional distillation and the experiment is simple not rocket science and I wonder why Nigeria can’t build packets of small refineries with small capacities for each state. I wonder how Nigeria won’t allow individuals to fabricate refineries with small capacities to service state. Some person is making a presentation with diagram
For heaven sake Biafra forces drilled and refined their oil under war conditions and these refineries were a mobile and dismountable ones and they powered their aircrafts with that and their tanks so what is even special about refining this crude, ordinary fractional distillation. Go to creeks and see how local illiterates are refining oil with drum and for those of us that is impressed with this grammar let me break it down for you how fractional distillation works …..Fractional distillation is the separation of a mixture into its component parts, or fractions, such as in separating chemical compounds by their boiling point by heating them to a temperature at which one or more fractions of the compound will vaporize.
Funny enough crude oil refining is even simple distillation and I keep asking how and why we cant just think. The core refining process is simple distillation . Because crude oil is made up of a mixture of hydrocarbons, this first and basic refining process is aimed at separating the crude oil into its "fractions," the broad categories of its component hydrocarbons. Crude oil is heated and put into a still—a distillation column—and different products boil off and can be recovered at different temperatures. The lighter products—liquid petroleum gases (LPG), naphtha, and so-called "straight run" gasoline—are recovered at the lowest temperatures. Middle distillates—jet fuel, kerosene, distillates (such as home heating oil and diesel fuel)—come next. Finally, the heaviest products (residuum or residual fuel oil) are recovered, sometimes at temperatures over 1000 degrees F. The simplest refineries stop at this point. Other refineries reprocess the heavier fractions into lighter products to maximize the output of the most desirable products.

Just know that the cabals or bunch of mudaphukers will paint the picture that refining crude is just a sophisticated thing but igbos have done that ages and Nigerian can grasp it, the reason why refinaries wont work is simple, Nigerian intellectual laziness and dirty tendencies and also inability to think out of the box and finally we have been ruled by bunch of donkeys in the name of rulers and leaders. What is in refining oil. Get a container set it heat and at a particular temperature PMS comes out and a particular temperature DPK and other products come out. If they cant get it right they should consult the Biafrans if they are proud to do this they should consult the creeks boys in Bayelsa, I shouldn’t be teaching you chemistry but the truth must be told, kabals wont allow the refinery to work…SIMPLE

BREAK DOWN OF SIMPLE REFINARY
The most important refinery product is motor gasoline, a blend of hydrocarbons with boiling ranges from ambient temperatures to about 400° F. The important qualities for gasoline are octane number (antiknock), volatility (starting and vapor lock), and vapor pressure (environmental control). Additives are often used to enhance performance and provide protection against oxidation and rust formation.

Kerosene is a refined middle-distillate petroleum product that finds considerable use as a jet fuel and around the world in cooking and space heating. When used as a jet fuel, some of the critical qualities are freeze point, flash point, and smoke point. Commercial jet fuel has a boiling range of about 375°-525° F, and military jet fuel 130°-550° F. Kerosene, with less-critical specifications, is used for lighting, heating, solvents, and blending into diesel fuel.

Liquified petroleum gas (LPG) consists principally of propane and butane and is produced for use as fuel and is an intermediate material in the manufacture of petrochemicals. The important specifications for proper performance include vapor pressure and control of contaminants.

Distillate fuels such as diesel fuels and domestic heating oils have boiling ranges of about 400°-700° F. The desirable qualities required for distillate fuels include controlled flash and pour points, clean burning, no deposit formation in storage tanks, and a proper diesel fuel cetane rating for good starting and combustion.

Residual fuels are heavier oils, known as No. 5 and No. 6 fuel oils, that remain after the distillate fuel oils and lighter hydrocarbons are distilled away in refinery operations. Many marine vessels, power plants, commercial buildings and industrial facilities use residual fuels or combinations of residual and distillate fuels for heating and processing. The two most critical specifications of residual fuels are viscosity and low sulfur content for environmental control.

A variety of solvents, whose boiling points and hydrocarbon composition are closely controlled, are produced in refineries. These include benzene, toluene, and xylene.

Petrochemicals are products derived from crude oil refining, such as ethylene, propylene, butylene, and isobutylene, that are primarily intended for use as chemical feedstocks in the production of plastics, synthetic fibers, synthetic rubbers, and other products.

Lubricants are produced in special refining processes. Additives such as demulsifiers, antioxidants, and viscosity improvers are blended into the base stocks to provide the characteristics required for motor oils, industrial greases, lubricants, and cutting oils. The most critical quality for lubricating-oil base stock is a high viscosity index, which provides for greater consistency under varying temperatures.

Coke is a residue high in carbon content and low in hydrogen that is the final product of thermal decomposition in the condensation process in cracking. It is almost pure carbon with a variety of uses from electrodes to charcoal briquets.

Asphalt is dark brown-to-black cement-like material obtained by petroleum processing and containing bitumens as the predominant component. It used primarily for road construction and roofing materials, and thus must be inert to most chemicals and weather conditions.

bushdoc9919:
Thanks to the OP for this. Hope everyone reads it!

Too much of everything is just bad this include education and certificates, this is one reason that too much educated people get employed and less educated people employ them. This is the trend in the world and it can never change. The over educated man will analyse analyse, peruse and criticise something before an action is take. But the less educated man will fold his sleeves gives it a trial, that is why today we have the COSCHARIS,DANGOTES, FACEBOOK, JOBS, ETC these dudes have little education and they employ these so called book worm and they blow grammer.

That is by the way, why am taking time to tackle this, I see people saying this is a nice article I just laugh..What is nice about this article and the writer. To me he is just swriting bunkum and bullshit I must be frank. What is so special about refining crude oil. It is simple elemnatary chemistry. For thos of us that studied chemistry and did practicval. I mean those that went to good schools and I appreciate the school I attended in imo state with the best lab. That is by the way the principle of refining oil is called fractional distillation and the experiment is simple not rocket science and I wonder why Nigeria can’t build packets of small refineries with small capacities for each state. I wonder how Nigeria won’t allow individuals to fabricate refineries with small capacities to service state. Some person is making a presentation with diagram
For heaven sake Biafra forces drilled and refined their oil under war conditions and these refineries were a mobile and dismountable ones and they powered their aircrafts with that and their tanks so what is even special about refining this crude, ordinary fractional distillation. Go to creeks and see how local illiterates are refining oil with drum and for those of us that is impressed with this grammar let me break it down for you how fractional distillation works …..Fractional distillation is the separation of a mixture into its component parts, or fractions, such as in separating chemical compounds by their boiling point by heating them to a temperature at which one or more fractions of the compound will vaporize.
Funny enough crude oil refining is even simple distillation and I keep asking how and why we cant just think. The core refining process is simple distillation . Because crude oil is made up of a mixture of hydrocarbons, this first and basic refining process is aimed at separating the crude oil into its "fractions," the broad categories of its component hydrocarbons. Crude oil is heated and put into a still—a distillation column—and different products boil off and can be recovered at different temperatures. The lighter products—liquid petroleum gases (LPG), naphtha, and so-called "straight run" gasoline—are recovered at the lowest temperatures. Middle distillates—jet fuel, kerosene, distillates (such as home heating oil and diesel fuel)—come next. Finally, the heaviest products (residuum or residual fuel oil) are recovered, sometimes at temperatures over 1000 degrees F. The simplest refineries stop at this point. Other refineries reprocess the heavier fractions into lighter products to maximize the output of the most desirable products.
Just know that the cabals or bunch of mudaphukers will paint the picture that refining crude is just a sophisticated thing but igbos have done that ages and Nigerian can grasp it, the reason why refinaries wont work is simple, Nigerian intellectual laziness and dirty tendencies and also inability to think out of the box and finally we have been ruled by bunch of donkeys in the name of rulers and leaders. What is in refining oil. Get a container set it heat and at a particular temperature PMS comes out and a particular temperature DPK and other products come out. If they cant get it right they should consult the Biafrans if they are proud to do this they should consult the creeks boys in Bayelsa, I shouldn’t be teaching you chemistry but the truth must be told, kabals wont allow the refinery to work…SIMPLE

BREAK DOWN OF SIMPLE REFINARY
The most important refinery product is motor gasoline, a blend of hydrocarbons with boiling ranges from ambient temperatures to about 400° F. The important qualities for gasoline are octane number (antiknock), volatility (starting and vapor lock), and vapor pressure (environmental control). Additives are often used to enhance performance and provide protection against oxidation and rust formation.

Kerosene is a refined middle-distillate petroleum product that finds considerable use as a jet fuel and around the world in cooking and space heating. When used as a jet fuel, some of the critical qualities are freeze point, flash point, and smoke point. Commercial jet fuel has a boiling range of about 375°-525° F, and military jet fuel 130°-550° F. Kerosene, with less-critical specifications, is used for lighting, heating, solvents, and blending into diesel fuel.

Liquified petroleum gas (LPG) consists principally of propane and butane and is produced for use as fuel and is an intermediate material in the manufacture of petrochemicals. The important specifications for proper performance include vapor pressure and control of contaminants.

Distillate fuels such as diesel fuels and domestic heating oils have boiling ranges of about 400°-700° F. The desirable qualities required for distillate fuels include controlled flash and pour points, clean burning, no deposit formation in storage tanks, and a proper diesel fuel cetane rating for good starting and combustion.

Residual fuels are heavier oils, known as No. 5 and No. 6 fuel oils, that remain after the distillate fuel oils and lighter hydrocarbons are distilled away in refinery operations. Many marine vessels, power plants, commercial buildings and industrial facilities use residual fuels or combinations of residual and distillate fuels for heating and processing. The two most critical specifications of residual fuels are viscosity and low sulfur content for environmental control.

A variety of solvents, whose boiling points and hydrocarbon composition are closely controlled, are produced in refineries. These include benzene, toluene, and xylene.

Petrochemicals are products derived from crude oil refining, such as ethylene, propylene, butylene, and isobutylene, that are primarily intended for use as chemical feedstocks in the production of plastics, synthetic fibers, synthetic rubbers, and other products.

Lubricants are produced in special refining processes. Additives such as demulsifiers, antioxidants, and viscosity improvers are blended into the base stocks to provide the characteristics required for motor oils, industrial greases, lubricants, and cutting oils. The most critical quality for lubricating-oil base stock is a high viscosity index, which provides for greater consistency under varying temperatures.

Coke is a residue high in carbon content and low in hydrogen that is the final product of thermal decomposition in the condensation process in cracking. It is almost pure carbon with a variety of uses from electrodes to charcoal briquets.

Asphalt is dark brown-to-black cement-like material obtained by petroleum processing and containing bitumens as the predominant component. It used primarily for road construction and roofing materials, and thus must be inert to most chemicals and weather conditions.

subsidy is going this year... bye bye to N87 per litre.

no wonder we have a long way to go in this country, Buhari will have a long way to go in restructuring this nation, because a common man wont know all these things about refineries all he is thinking is buhari will reduce pump price to 40 naira per litre. Now I understand why our refineries are not working and I hope all those I blamed ignorantly for our refineries not working to please forgive me.

refineries not working and now subsidy is going totally, does it mean we will be buying pms at 160 N/L?? just when we thought things will get better now things are going from bad to worse. God save us in this country

Nice piece. I couldn't agree more. David Ricardo put up a theory to support this piece and that is the theory of comparative cost advantage. Nigeria cannot refine crude products more efficiently than their more developed counterparts, for that reason, I think it is bye bye to refineries in Nigeria. Don't be deceived by Politicians promises of reviving the refineries because there is a very slim chance of success. Imported products will always be more affordable here in Nigeria, this may seem strange to most of us, but it is the empirical truth.

Someone writes junk and adds irrelevant images here and there and shout at the highest of their voices that they have found the solutions to things and the blind Nigerian Youths who can't read would have nothing to respond to than nod their heads like an agama lizard.

Who says government refinaries can't work? And who says refining locally isn't cost effective even with the prevailing issues? Excuses to abdicate you from your responsibilities i guess. Just a look at the long term costs on your citizens for having your own refined petrol, kerosene, ability to have large tank farms, guarantees and control of such strategic asserts and factor in the logistic costs we keep spending on importation is enough to shadow any costs involved in maintenance and operation of a refinery.

Most times to solve a complex problem all you need is to break it down to smaller ones. First, we have no biz having refineries far from areas where these oil wells are, when we know the cost implications of running and securing long lenghts of pipelines. According to my secondary school understanding industries are situated where the raw materials can be easily accessed.

Next is not to build gigantic refineries but small and efficient ones near these areas with the oil wells which would ensure shorter distances for pipelines carrying crude and enhance security. Why have a refinery in Kaduna when you understand it's hard to protect the pipeline along such long distances? Building these smaller ones would ensure that they can be easily managed and maintained. Perfect these steps and repeat over time. In 4 years you would have achieved your AIMS of Self sufficiency in crude refining. Apply these same principle to the power sector and you would solve it in few years. Why generate electricity in Kanji and first transmit over long distances to Osogbo before now sending it back to the national grid again. What kind of abysmal system is that? Why not generate electricity in each sections and transmit same to those sections instead of a national outlook stuff that encourages waste and redundancy.

Modern Management has moved away from those gigantic units that aren't efficient to smaller and more manageable units which are targeted at solving a specific and particular problem. The solutions from each of these individual independent segments is what adds up to make a single entity. When you have problems in a segment, all you need is just fix that segment without it having major disruptions to the total workings of the entity. These is not too hard to implement but i guess Nigerian leaders are just way too stupid to look at the bigger picture and follow through with reforms.

YOU JUST SAID IT ALL, BUT THE PROBLEM IS ,,,...., WILL THEY EVER BUY THIS PRETTY IDEA ?.....