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.

brandsoncharlie:

Who told you he will bring in the forex.

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.

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.

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.

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.

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.

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.

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

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?

wolement:
At a time when the world is abandoning oil for cleaner energy. What a great move

IDnoble1:

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

tnerro1:

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

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.

Yankee101:
Special treatment already?

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).
>

9jaRealist:


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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.