Adeola Adefehinti’s Post

In case you missed it from numerous media outlet, This is What Akinwunmi Adeshina said about the ongoing Dangote - NNPCL drama. “In a nation that has been importing refined petroleum products for several decades, the abnormal simply became very normal. No smart investor would make a $19.5 billion investment and want it to be undermined by importers. “To manufacture is extremely expensive and risky. This is even more so in Nigeria, given the very challenging business and economic environment, fraught with policy uncertainties and policy reversals, and where the self-defeating default mode of “simply import it” is always so easily rationalized and chorused to solve any problem. “Competition is good for everyone. But is Dangote refineries anti-competitive? What is the evidence? Has Dangote refineries prevented any other company from setting up refineries? Why have others not done so? How come they have not done so for several decades? Was it Dangote that held them back? But Dangote refineries surely cannot be asked to ‘compete’ with importers of petroleum products. “That is not competition. Let the importers set up local refineries and compete by refining in Nigeria. That is fair and justified competition. We cannot and must not undermine, disparage or kill local industries, talk less of one that is of this scale — a jewel of industrialisation in Nigeria,” my thoughts are in the comment section!

The Nigerian government seems just to have a way of ensuring that the Nigerian Economics is strictly 'Nigerian'. Still on this Dangote refinery issue, honestly I'd hoped that it was going to cause fall in prices of petrol and related products even if it's not going to be as significant as many hoped. But when I realized that NNPC was to be the exclusive buyer of the fuel from Dangote, I suspected an an unusual play. Apparently, Dangote has relinquished the power to fix its own oil price to NNPC. Why can't oil marketers carry fuel directly from the refinery instead of going through NNPC as the middleman? NNPC is likely becoming a big monopsonist. My thought is that Nigerians will likely end up paying the same price as if they fuel was being imported. So having the refinery around may not make much difference in the lives of the average Nigerian citizen. It might be the case that Dangote just got 'settled' so he will cry no more and protect or at least benefit from his investment.🥲 I'm open to different views though especially if you have the facts.

Many people do not understand the enormousity and complexity of what Aliko Dangote has been able to pull off with his Refinery and Petrochemical complex, neither do they have a clue about how critical it is for the growth and development of the Nigerian economy yet they keep on looking for any semblance of negative news to project about this laudable project while being blissfully ignorant of the fact that every single Nigerian will benefit from the success of the refinery. When the refinery and Petrochemical complex becomes fully operational, it will save Nigeria $10 billion annually in foreign exchange used to import petroleum products while it will generate another $6 billion annually from the export of its products there by shifting the country's balance of trade by a whopping $16 billion or approximately 30% in favor of the country. This will eventually go a long way to stabilize and enhance the value of the Naira which will affect all of us personally. And this is apart from the hundreds of thousands of jobs being created down the value chain. You may choose not to like Dangote as a person for whatever reasons but wishing that his refinery project fails is like shooting yourself in the face. That said, government was right to support him and bail him out when he had problems completing the refinery. This is what responsible governments do all over the world because of the potential impact the investment would have on the economy. Kudos once again to Dangote, he has achieved what several governments all over the world and fellow billionaires cannot dream of achieving. His name will certainly be written in gold in Nigeria's economic history.

Does it mean that the Federal Government of Nigeria will ban importation of fuel? Beautiful development, will it be extended to all products produced in Nigeria to create a fair competition for the Nigerian producers e.g. ban importation of vehicles, INNOSSON produces vehicles locally. Who knows, this debate may resolve many contradictions in the Nigerian economy.

My question remains, why are we over flogging this issue of competition?it's only expected that the importers run out of business in no time once Dangote refinery commences operation in full gear going by basic economic principles of sourcing primary and secondary factors of production locally. If importers decide to cut corners by importing substandard products just to compete in pricing, the regulatory bodies will sanction them, indirectly they are out of business. Dangote refinery will still thrive and run it's "importers" competition aground naturally. Personally, I don't feel it's healthy for the government to come out publicly that it's banning importation of petroleum products because of Dangote Refinery. These same person's will still say Alhaji enjoys government indused monopoly. Naturally, any entity that intends to compete with Dangote refinery will have to tow thesame path of refining locally. Only reason imported substitute can thrive is if there's a compromise on the part of the regulators.

Where is the fair advantage, if you are taking the product to go refine in another country and you are buying in same conditions with the person refining in the country of crude producer/owner. Nigerian citizens can not become a perpetual slaves. We were given school and we have attended the schools and gained quality education, even in some cases in same class with the so called westerners and we beat them in class with wide margins. So what is the fundamental difference that they can not allow us to fix our problems without intervention. What is the reason our fathers and our current leaders can’t believe in our ability to fix our country and continent Africa. Economic has a principle and now that we have learnt the principles do we still need calculators, even if need calculators the invention was not far from African. History told me about Thomas Fuller. There is a new way to think, Africa arise above your challenge.

If you love Nigeria and wish her well, please pray that this never happens. Is it not the same NNPC that has had 3 moribund refineries under its watch for decades now? This fight against Dangote refinery is in reality against Nigeria's interest. The pull-him-down association must be stopped. We can no longer afford to continue romancing this import dependent economy. You may argue that Dangote did the same thing to other competitors in other industries but let's look at the impact of this refinery on our economy. This government cannot pretend to be working towards rebuilding the economy they destroyed while at the same time appearing helpless in the midst of all these hullabaloo. Let the presidency wake up from their slumber and stop playing dirty politics with our lives and future. https://lnkd.in/dddxPBaK

Are We Not Our Own Problem? During a recent Twitter Spaces session, Devakumar V. G. Edwin, Vice President at Dangote Industries Limited, shared some striking insights about the challenges facing the Dangote Refinery—and it's clear we need to reflect on what this means for Nigeria. Key Takeaways: - Over 95% of petroleum product importers in Nigeria are not sourcing from the Dangote Refinery. - As a result, the refinery struggles to sell 29 tankers of diesel per day, with most of its diesel and aviation fuel being exported. - While local diesel prices have dropped from N1,200 to N900 per litre, marketers have written to President Bola Tinubu, claiming this price adjustment is negatively affecting their businesses. - The refinery has imported 57 shiploads of crude due to limited local supply from the NNPC. - Yet, 44% of the refinery’s petrol production capacity could easily meet all of Nigeria’s local demand, if properly harnessed. Where is the problem? With the potential to significantly reduce Nigeria’s dependency on imported fuel, the Dangote Refinery stands as a solution to our fuel supply and pricing challenges. But poor local patronage is hampering progress. The question then arises: Are we not contributing to our own problem? Instead of leveraging local capacity to reduce costs, strengthen our economy, and create jobs, many players in the sector continue to import, causing avoidable strain on the nation’s economy. It's time we asked ourselves the tough question: Are we ready to take ownership of our progress, or will we continue to look externally when the solution is right in front of us? Let's not just wait for change—be the change. #Nigeria #DangoteRefinery #FuelSupply #PetroleumIndustry #Economy #Leadership #Progress #LocalCapacity #BusinessChallenges #PetrolPrice #EconomicImpact

It is utterly disgusting, disgraceful and annoying at the same time! How can a oil producing country without a single functional refinery in 2024 be frustrating (pressing the neck) one of its largest indigenous investor this way? This sometimes makes me wonder if we are really interested in the "ease of doing" mantra like we claim in this country. Dangote isn't saying NO to healthy competition. This seem like an unseen hand in play to frustrate the refinery from being operational. As of now, the nation does not have any functional refinery, which means that there is no competition to start with. More so, Dangote has given a very clear option, which is for NNPC to buy out the refinery and run it, so that there won't be any need for the "inexistent" competition, just like the Port Harcourt, Kaduna and Warri refineries are operational without any competition. If the government could be doing this to an indigent business, how then will the foreign investors look at us? This is a clear indication that the government isn't interested in the growth of the real sector. So many young people will be discouraged with this drama, because if with the economic and political clout of Dangote, he is being treated this way. I wonder what becomes of young people with no connection and financial war chest. I read an article of how an entrepreneur that's into car assembling, never got the support needed to locally manufacture tyres in the country due to the bureaucracy in the government, despite having a good business plan that shows feasibility and viability of the project. I don't know why everything that works in other countries always fail in Nigeria.

In what appears as a last minute efforts to strengthen people's confidence,clear doubts, encourage local participation and help the country's economy.The management of Dangote's refinery,one of the newly built world biggest petroleum processing facility has come up with some operational and marketing directives to work with. Three indigenous marketing firms has been announced to carryout distribution of the products retailers for onward delivery to the end users.This will in no little way deepen local content initiative,as championed by the Nigeria Content Development Monitoring Board(NCDMB).As it is in Nigeria at the moment,oil movement distribution is so inefficiently implemented leading to scarcity of the products at times.Just as am applauding this initiative,am appealing they ensure transparency and proper monitoring of loaded Tankers from their depots to forestall diversion of same. Secondly, they've announced that the products will be transacted in Naira, instead of the already dollar embraced transactions within and exports sales.It is no news that the Nigeria business space has so much be dollarised at the detriment of the local naira currency.This concern among other factors are not unconnected to the free fall of the naira at the moment.As as the Government is doing all she can to save the naira,moves like this from local investors will go a long way in complimenting Government own efforts. Lastly, I have come up with a study that, with the Dangote's refinery coming on stream, couple with other NNPCL owned refineries, in addition to the modular ones being constructed.Nigerians will soon enjoy in no distance time, friendly Petroleum Products Pricing,as to be necessitated by market force. DAVIS VWEDE, OKPUBULUKU IS A PROCESS ENGINEER, FINANCIAL OPERATOR, WRITER AND A SOCIAL ANALYST BASED IN THE NIGER-DELTA REGION OF NIGERIA.