Godwin Oluwole’s Post

I said exactly the same in my prior post. Federal Government of Nigeria is destroying investors confidence with the Dangote Refinery issue. See 👇 This whole issue on Dangote Industries Limited is shocking and creating bad waves for Nigeria globally - Akinwunmi Adesina of African Development Bank Group Monopoly often exists where there are high barriers to entry or high capital costs. How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refineries? 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.

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!

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

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.

Billionaire businessman Dangote has stated that his refinery will lower fuel prices in Nigeria. Aliko Dangote, Chairman of the Dangote Group, announced at the Afreximbank Annual Meetings and AfriCaribbean Trade and Investment Forum in Nassau, The Bahamas, that his $20 billion Lagos-based refinery, capable of producing 650,000 barrels per day, is set to significantly impact fuel prices in Nigeria. He indicated that similar reductions had already been seen in diesel prices following increased availability from his refinery, with costs dropping from N1,700 to N1,200. When questioned about the potential impact on petrol prices, currently averaging N700 per liter, Dangote did not confirm a direct reduction but emphasized the precedent set by the diesel market. This statement highlights the anticipated role of Dangote's refinery in potentially stabilizing or lowering fuel costs across Nigeria, pending further developments and market adjustments. #NaijaExclusive #NigeriaNow #NaijaToday #NigeriaFocus #NaijaInstant #NigeriaEssentialNews #NaijaNewsFlash

If I have the opportunity to meet with President Bola Ahmed Tinubu I won't ask for an appointment, contracts nor say Nigerians are suffering. I would say, His Excellency, kindly take decisive actions to have the government refineries working back. The refineries can work back if you wishes. Mr. President. The importation of fuels is sabotaging the economy and Dangote petrol whose many Nigerians thought would bring stability to Nigeria's chaotic petroleum industry. But not affordable to Nigerians. Even I heard that 11PLC (Formerly Mobil Nigeria), TotalEnergies, AA Rano, and other marketers have begun lifting Dangote Petrol from the Nigerian National Company (NNPC) Trading Limited at the rate of ₦765.99 per litre, which could simply means that NNPC is using the cost recovery method to sell the Dangote petrol to the marketers. If Dangote petrol is sold to NNPC Limited at ₦898.78 / Liter and NNPC is selling to marketers at ₦765.99, that mean ₦132.79 is been reduced and later on, NNPC will request for the dividends which means for the federation for the social welfare of Nigerians to help boost NNPC Ltd’s cash flow but the president can prevent this from continue sabotaging the economy and make Nigerians suffering by taking decisive actions to have the government refineries working back. If the President put all the government refineries to work and along with Dangote refinery, Nigeria will be the largest petroleum products export country in the continent. NNPC refineries can produce fuel grades that are affordable for domestic market while Dangote focus on the international market with its high grade fuels to earn foreign exchange for the country. With this, Nigeria will be one of the biggest petroleum products export country in the world. The lack of domestic refining capacity has wrecked the economy, which has resulted in a massive drain on foreign exchange reserves and there is a need for government to develop industrial sectors that support or leverage its energy resources. The actualization will make it possible for Nigeria to change from raw material supplier to value-added product supplier. To secure a steady supply of petroleum products to meet national energy security needs is very important to the nation. Nigeria go better in sha Allah 🇳🇬 #GodBlessNigeria #MayTinubuSucceed

The Federal Executive Council (FEC) has directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude #oil to Dangote Refinery and other local refineries in naira and not in United States greenback. Federal Inland Revenue Service (FIRS) boss Zack Adedeji disclosed after a FEC meeting chaired by President Bola Tinubu in Abuja on Monday. Investing is tough. Dangote should just be helped to make this Refinery a success. Already confidence has been dented to Nigeria as an investment destination. It sadly sends a signal that the price for sacrificing for #Nigeria is to get sacrificed. Who will want to come and invest in a country that disparages and undermines its own largest investor? Result of playing politics with everything without foresight. The 650,000 barrel-per-day Dangote refinery is a significant step towards self-sufficient in Nigeria's energy sector. While under construction, the refinery employed about 40,000 workers, of which 29,000 Nigerians and 11,000 foreigners. Refining crude oil locally will enable the country pay for the refined production in naira which will save scarce foreign exchange and generate revenue in exported refined petroleum products. An ambitious growth📈 prospect for SMEs, private sector investment and the overall economy in years ahead. Nigeria🇳🇬 is an #AfCFTA member country #TradeInAfrica #Markets #GDP #Growth #Economy #GlobalTrade #WorldEconomy #TradeUnderAfCFTA #DangoteRefinery

Crude Oil Quota Allocation to Host Community for Niger Delta Oil Refiners Association Though it is difficult to manage the level of greed and selfishness in Nigerian society, yet, if it could be possible to regulate the population of local crude oil refiners in the Niger Delta, set up special teams of engineers and scientists in the refining industry from various reputable Nigerian tertiary institutions, integrate the engineering, science faculties with the Niger Delta local oil refiners to modify their traditional processing method using our scholars in that stead, I assure Nigerians that all these problems of shortage or scarcity of petrol and gimmicks of NNPC will be over. After all, Nigerians know that those Niger Delta refiners have been doing great, even, we leveraged on their output all these periods of laxity by NNPC. So, why are we pretending as if this is false? Is it because this local production is situate in the Niger Delta of Nigeria? GOD HELP Nigeria 🇳🇬

While having our refineries operational may seem like a solution, it's important to note that domestic refining doesn't automatically translate to cheaper fuel. The cost of crude oil, maintenance, and operational efficiency still influence prices. Government-owned refineries have historically been inefficient, requiring heavy subsidies and constant bailouts. Instead, a better approach might be privatizing these refineries, allowing more efficient management and reducing the financial burden on the government. Additionally, converting vehicles to Compressed Natural Gas (CNG) should be made more affordable. Nigeria has abundant natural gas resources, and incentivizing the use of CNG can offer a cheaper, cleaner, and more sustainable alternative to petrol, reducing our dependence on imported fuels while saving citizens money in the long run.

Some amount of dollars 💸 channelled into the Tinubu administration projects on What? That funding we saw today from Aliko Dangote was money for infrastructure Development Objective, again when we ask for accountable decisions on resource management, it's more in line with ... " What is Francisca Igboa hitting on ?. Dangote’s CNG Investment Yes my thought exactly 💯 with the waves on dangote recently lets broaden stakeholders to understand this level of issue with sounds like referring to recent investments President Bola Tinubu’s administration. Specifically, Dangote has committed over $280 million to support the Compressed Natural Gas (CNG) initiative12. This investment aims to transition Nigeria towards a low-carbon economy by converting Dangote’s fleet to CNG by mid-202613. Francisca Igboa’s comments likely address concerns about transparency and accountability in how these funds are managed. She might be emphasizing the need for clear, accountable decisions in resource management, particularly in the energy sector. This includes ensuring that funds are used effectively for infrastructure development and that there is proper oversight to prevent misuse. Yes, Aliko Dangote’s recent investment of over $280 million in Compressed Natural Gas (CNG) technology and infrastructure is a significant move to support President Bola Tinubu’s initiative to transition Nigeria towards a low-carbon economy.This investment includes converting Dangote’s fleet to CNG by mid-20263. Francisca Igboa’s comments likely highlight the importance of transparency and accountability in managing these funds. Ensuring that the investments are used effectively for infrastructure development and that there is proper oversight to prevent misuse is crucial for the success of such initiatives. What are your thoughts