Why Nigeria Can’t Give Dangote Refinery Amount Of Crude It Requires - Energy Expert
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- Опубліковано 27 сер 2024
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Absolutely ridiculous !!. So Dangote has to buy crude from abroad before he can refine and resell to get his business going. What a shame !!
Nigeria will always give excuses, it’s either snakes swallowing money or thunderstorms not allowing Dangote refinery from getting crude. Aluwe country!!
But the government knew this but still pushed him into it and even have a stake in the refinery. They must have come to an agreement on how much oil he will get before building the refinery. So why are they turning around now? If Dangote is going through this, where is the hope for a common man with a dream?
Easy. Before Dangote refinary someone used to supply african countries with oil products. Dangote is going to take over the african market and do you think the previous supliers are happy? Or do you think they don't have the ability to fight back?
Remember what happened to Nord Stream2.
Energy business is bloody. For some reason all top20 world largest oil and natural gas reserves are in fire, including Nigeria, excluding western countries and its allies in the arabic gulf.
@@jeronimodavidgaroupa5143 So BMW is the only brand in the car market or Gucci is the only brand in the fashion industry? In a particular market, there are rooms for every player. And who tells you that tomorrow, another oil company bigger than Dangote won't show up? Your comment is not reasonable.
Those who don't want our refineries to work won't allow Dangote's to work. It's like coming to bail a man who was refused bail and dumped in the jail. You want to set him free?
@@EdwinAgbu-xg2mj No corporation or, group of oil corporations in Nigeria can stop Dangote oil company today from achieving its goals. Only a state player can do that, either from within or from without and believe it can only come from outside, if it were to happen. I once came across some information online of S. Korean oil companies being among those behind Nigeria's continued importation of refined petroleum products.
I like the fact Mr Olabode speak some economical truth but i expected Nigeria government to have provided dangote an oil field long time ago because they know that they will not be about to provide him with enough oil so give him a field to drill his own oil
In essence dem carry una crude oil collect loan even the one wey dem never produce. So Dangote has two options buy crude from other places or get an oil field to drill his own crude.
And they probably has signed it over for 20years😂😂😂 and we still dy maybe 10years now
Gbam!
@@aleemkhalid6353 😂 I dey tell you
In summary:
Nigeria promised Dangote a certain quota of oil in order to meet the capacity required for his refinery. As it stands, Naija does not have the oil they promised him. Reason is that Naija under Buhari collected billions of dollars worth of loans and also promised oil quota to their creditors as a form of repayment for the loans.
And so for the next 30 years we will keep repaying the loans with oil. For Dangote’s refinery to be profitable, he has to import oil from outside Nigeria and also sell the refined products outside Nigeria. Hope this helps…
Nigeria promised oil quota to their creditors. Nigeria did NOT also give the market for petroleum products to them. The IOC's want control of the market. That is the issue here. Otherwise they would sell crude to Dangote at market price. Nigeria as a sovereign nation can compel the IOC's to sell crude to Dangote at market price.
Thank you for the explanation
@@ToralizerEncLib It’s more complex than that. NNPC has been very delinquent on their end of the joint ventures with the IOCs, and so, cannot compel them to give up their production quota by selling to Dangote in naira instead of dollars. Last I checked, none of the IOCs own and operate refineries in Nigeria simply because it is not profitable.
@@henryyy190it is not complex. IOC's have refining interests in Africa. It is not difficult. Google any IOC name and 'refineries in africa' In order for these interests to remain profitable, Nigeria's and Dangote's refineries must remain in a state of disrepair so they can import pms from their refineries in africa. Go online and see the shareholder reports these IOC's release about their refining capacity in Africa. It is not complex at all. Nigeria as a sovereign nation can compel these guys to play nice with Dangote.
@@henryyy190 tell your clique to stop deleting comments that refute your lies of omission. The IOCs have refining interests in Africa. Google it. They report profits to their shareholders. Google it. And this can only continue if our refineries are non-operational.
They just don't want to reduce the fuel price
@@dipo1963 You're right about that. It is difficult for petrol prices to reduce at the gas stations if the naira is always constantly devalued by the CBN. The sooner the naira is strengthened, the lower the price of petrol at the stations..🙄
@@4evertrue830 You are wrong about that. As long as Dangote buys crude outside Nigeria, the naira will not strengthen. When he buys crude in Nigeria, the naira will strengthen and the price of gas will come down. The IOC's not only get crude from Nigeria, but they sell refined products to Nigeria. The only way this is possible is by making sure our refineries don't work. And that is what they are doing by refusing to sell to Dangote at market price.
A real and excellent explainer.
Weldon Mr.Olabode
Truth is sweeter than honey 100% WELL SPOKEN.
Mr Olabode Sowunmi has spoken objectively, as an expert. There's nothing more real than reality and the truth is always bitter.
1. The mistake Dangote made was building the "BIGGEST" refinery in the. Nigeria only needed a refinery that works and meet its demands.
2. The Oil business is arguably one of the largest monopolies in the world. I would expect Dangote, as a seasoned business man to know, these are not gentle tides to ride.
He obviously doesn't know Jack!
Jagaban won't give him unlimited concessions like Buhari did.
If he had gone with Osibajo's idea of modular refineries, by now he'd be operating a new one every one or two years, and the lower crude demand would be easier to manage. And as separate projects they'd have separate investors.
He could have also (with the help of his connections that help push govt policies) gotten crude allocations for direct export. If he did this a few years earlier, it'd have helped build up a base which the refinery could rely on.
Just my 2 cents 🤷🏾♂️
@@ahmadbello2505 Which mistake? Who are you to teach Dangote about his ‘mistakes’? Please let us know your qualifications. Don’t make me laugh.
@@fabuchap2545
1. You can laugh all you want it's a free word my friend, with the current situation I think a little laughter can do us some good.
2. I am no one indeed and lack the credentials to school both you and Dangote on any business. But I will remind you even Dangote is not invincible, he wouldn't be facing such problems if he was.
3. I have nothing against Dangote, as a billionaire business man, he's a role model.
4. You don't crash into a party and expect to snatch the whole cake without any resistance. He's coming to not only take a piece of people's business, but the entire businesses and more. It doesn't require an expert to know he'll face a lot resistance, it's only common sense.
5. Lastly, I wish Dangote well, I hope this refinery will be a huge success which will benefit not only Nigeria but the entire Africa.
@@el-sig2249Obj was the first President that gave Dangote monopoly over everything from cement to sugar and salt .get your facts straight
@fabuchap2545 thank you for asking that question, its amazing how people with no record, experience or even understanding of a situation suddenly become experts overnight advising seasoned and proven individuals
It is a movie. It is "Rhyme of the Ancient Mariner" by Coleridge in the 1800s. Oil is sold by forward contracts, sometimes by contracts. The IOCs have their contracts and their refineries. Who can not force them to sell their share of oil (product sharing agreement with Nigeria) by abrogating their previous commitments when he wasn't certain when the refinery would be completed. As a businessman, he should have anticipated this. NNPC also has future commitments. He should have acquired Shell and Total oil onshore oil production sales to ensure a guaranteed supply of crude.
This man just told us, in a very polite way that both Dangote and the FG have no idea what they are doing.
Under Buhari they gave him money and unlimited concessions to build the refinery (practically bankrupting the economy) but under Jagaban they can't afford to give him the crude to run it.
@@el-sig2249 How can one refinery of 600,000 barrels much of which came from his money invested and others from loans he got outside the country and a little more from NNPCL, practically bankrupt Nigeria's entire economy? That does not make any sense whatsoever 😕.
@@4evertrue830 I agree. It doesn't make any sense. I mean, consider these questions:
Why did the NNPC allow it's own refineries to remain grounded and go funding a new private project?
How much of his own money did Dangote actually put into the refinery?
Is there any truth to the allegations that most of the investors, the real owners are actually the bigshots who were there present at the commissioning?
Why did the CBN funnel so much money, hundreds of millions of dollars to the refinery?
Did that have anything to do with Nigeria's inability to fulfil international bank settlement obligations?
Why did is take the new refinery a year or more to use the money for procurement as intended? Were they using it for roundtripping in the forex market as alleged?
Why did they rush to commission it when it was no where near commencement of operations?
By the time you answer one or two of these questions the whole thing will make even less sense to you. To use the words of Mark twain: the truth is stranger than fiction.
Nigeria doesn't make sense at all!
Why are u dishing out opinion u know next to nothing about ?
@@4evertrue830thank u. It's mind bugging how ppl just come out in public space and say things they nothing about.
@@usmanmt33 Right. I guess insolence makes you feel good. ok, suit yourself.
As a fellow African from Botswana 🇧🇼 this is embarrassment of epic proportion absolute enemy of progress am not Nigerian but am ashamed as an African 😢
There is no reason Nigeria should not give Dangote crude , is all about APC and PDP corruption act in Nigeria always suffering Nigerians
The truth must be told
Its has been alledged our crude oil production is low. The current production level have been used as collateral to borrow money by the buhari and current administration.
The reserve is not availavble or accessible. Lets investigate the reserve claims. The food reserve should also be validated.
Stories. Until we kick out corruption, we are wasting our time.
Tell me how do we kick out corruption, and who are the people to kick it out.
Thank you Jare...
Nigerians settled for a very corrupt president, one with too many skeletons in his closet and they want him to do the right thing...we are clearly not as smart as people think we are...
Tinubu should remove Kyari and his entire team from NNPC. He should contract an expatriate from a non oil producing country to manage the behemoth.
He should revoke the license of any exploration company that fails to sell to Dangote Refineries. In fact, they should compute an amount of every exporters crude export that will go to Dangote and other local Refineries before export. After all, NNPC is supposed to have a local requirement allocation before export.
😂😂😂😂😂
That sounds sensible
I don't believe you sir,Dangote as a business Man in Nigeria has a first hand knowledge of every business that is control by the Nigerian government more than some govt appointees and newly elected politicians,so before he raised alarm he knows, though I'm not in support of monopoly but i saw some greedy and selfish hand in what is happening.But they should know that Nigerian patient is as stake.
The only thing I enjoyed is that the expert is well spoken
The question is why is Nigeria with a large reserves of oil and gas unable to upgrade and produce more oil by themselves. That should be the utmost priority to any Country with that large amount of crude oil. Most members of Opec countries are flushed with money due to increase of oil prices except Nigeria, which has not modernized or has any control in the production of its oil. It is also important to note that Nigeria could not make due of their Opec quotas.
Previously on stories that touch
Story story.... Story 😅😅😅
What they are saying is Dangote is screwed O! They led him down the primrose path to wahala
He is not screwed, he can still buy crude oil from other sources if he wants to. Afren oil for example, is a nigerian crude oil company and can supply to him, only if he wants but in limited quantity. 🤔
@@suleienejod2071 You really think Dangote is a stupid man? Stupid enough to be “led down a path to wahala”? I don’t think so. He would never have reached these heights if that were the case. Think about it.
Very true but he has a trump card off his sleeve. So at this point, it's a power tussle
Precisely three days before General Muhammad Buhari was sworn into office on May 29, 2015, the DPR hurriedly organised a workshop at Hotel Presidential, Port Harcourt on modular refinery.
I recall a representative of Total Support, one of the 18 companies issued licence to build refineries in 2004, Mr. Ubani Nkaeinieme, blamed the failure of the Nigeria National Petroleum Corporation (NNPC) to guarantee them crude oil supply as the primary reason why none of the companies could commence operation.
He regretted that it took NNPC four years to write his company that it can only guarantee 60 percent of crude required. According to him, no financial bank will be willing to finance a refinery that doesn't have a guaranteed source of supply.
He also berated DPR for insisting that it will only issue operational permit in 2004 to only companies that had capacity to refine about 50,000 per day.
This guy saying Dangote plc is one person is not an expert abeg... What's cogent in what he's been saying?? So you're saying Dangote plc does not know about the politics in the energy sector or the debt for crude agreement.
Please bring someone with better insight next time
Isn’t the Nigerian an investor in the refinery, why are they working against their own interests
The gentleman loves to rely on excuses, no drive to be critical and raise emphasis to the government for quick action
This is because a lot of people are worried Dangote will become Un Godly rich from this refinery. He will be the only one refinery in a country with top 10 oil deposits. The Nigerian government needs to fix every refinery in the country AS SOON AS POSSIBLE if ppl are so worried about the amount of wealth Dangote is about to accumulate.
The fact that you're making this statement shows how ignorant you are of the situation, let me enlighten you a little bit.
It was clearly stated publicly by even Dangote himself that more than 50% of the profit that'll be generated by the refinery will be going to the federal government, the rest will be shared majorly by Nigerian banks and the African development bank including NNPC who invested heavily in the project.
Dangote will most likely end up not getting even upto 5 percent of the profit that'll be coming in. and dont forget, this will not start coming in until they have covered the more than 15 billions dollars of loan they have gotten to build the factory, which would takes years to do, so know your facts please. What you assume might be completely opposite of the reality.
They avoid the repeat of the blackgold rush that made the tycoon americans very rich.
Abi na Dangote dey hide all the fuel , dey buy am since dey store
Free advice to Dangote, you need to act like putin and be the president of Nigeria.
If NNPC gives dangote crude, dango will crash the pump price which is what they don't want. If dangote imports crude, his pump price maybe more expensive than NNPC price and dangote dont want that.
To get his refinery up and running, he would have to import oil. Else the refinery will fail because Nigeria cannot meet the capacity the refinery needs to be profitable
Has he crashed cement,indomie price?
@@youngever763😂😂😂😂very good question..and he gets all the raw materials in Nigeria from farmers here ooo😂😂😂
I did a study on multi-energy projects i.e CCUS clusters and reviewed case study in the UK and Canada (very complex, UK couldn't do 1 in more than 10 years). Disruption is possible in oil and gas from technology to business models. But e go hard for Naij to much corruption we cant even get first principles right. I finally saw some light in tech and left behind my L.P Drake Reservoir engineering text books .
Dangote is 100% criminal God don catched him up and he will suffer it till end Dangote thought that everyday is Christmas
Exactly
He employs more than 20,000 people and does charity work
When will Africa end their slave attitude. Why would a refinery of such magnitude built by an indeginous Nigerian be denied support by the government???. It is a big shame.
God bless you sir with your first response.
I’ve said this time again, Dangote might have to import crude in order to meet up with his refinery’s capacity
Exactly
He's not even ashamed to say "one of the IMF loans takes 18% of our crude oil" 😢 are you kidding me..... Another loan was taken for elections, also repaid by Nigerian crude oil. 😬 Is this a joke or what
Is just the the Africa we find ourselves
My brothers, we have foolishness as a problem in this lovely continent of ours. I am asking from Kenya. What is the short history of why Nigeria does not have working refineries and have to refine the crude oil in Amsterdam? Why is Dangote being given a hard time?
The truth is we should be having this problem, a country who is ready to work should have solve this country before dangote refinery is even ready for operation, for the first time in so many generations, nigeria finally have a refinery a refinery that will work because the owner is getting it right, but guess 😂 our government still want her citizens to suffer because growth is not what the country want lol 😂all crap
GOD will restore us
I cannot understand why this was not discussed and solutions put in place before hand. Simple math tells you that dangotes refinery will take more than 50 % of Nigerian oil.output. So this will cause disruptions in forex until.refinery starts selling its products
How long was that thunderstorm?
Official information is a lie😂😂😂😂😂😂. Those who know, know!
Absolute truth said for once 😂🎉
Omo I understand this man purely. Dangote go get problem. Nigeria don enter too many mumu contracts
Exactly, those loans will be repayed with crude, the Lagos Ibadan train that’s built on loans from the Chinese government and many others too. I feel 80% of WTI has been used in many repayment contracts
The low output can be attributed to lack of new investment in the Nigerian oil industry so we need new investment to improve production above the current level of 1.2million daily.
Always talking nonsense about fuel. Is 8t not d same oil that Saudi, ìran, Iraq Russia and Co got that we have too? Always giving excuses for incompetence!!!!!!!
Shame on Nigeria
If bilgat was a Nigerian he would have never arrived to where he’s today. Africa problem is us Africa. Elon’s must is and Africa but now the world richest man as and America. Shame to us Africans
I thought they have oil well in Lagos. Why not government give him that one if they really have the national interest at heart .
These country is really a lawless nation where people are bigger than government.
Imagine this guy saying Dangote is going to meet some real quality competition in this space… yep all the functioning refineries are really going to price dangote out the market
Dangote everyday is for a thief but one day for the owner
Alot of the comments here are hired comments from the Oil Cabal
Who approved the license to construct LTC without having a feed stock supply agreement
APC Abracadabra....
NIGERIA needs only CAPTAIN TRAORE of BURKINA FASO..and i a second they will find crude for dangote
🤡🤡
I wish ppl can just understand this scenario, dangote can get oil from the international market if nigeria cant supply, he
already has a sea port for this, i blv dangote is just playing games which i don't know, he knows nnpc. Cant give him all the crude he needs
Mr Olabode a lot of metaphors but not enough deep insights into root cause of problem
Thunder is stopping transfer of fuel now 😂😂😂😂. NNPC should even say flood is stopping them. I don't know why they are making merchandise of nigerians
They have sold the country in advance, only solution call in emefeli to print more cash, make he tell them to print dollar 😂😂😂😂 everybody go hear am
A Nation at standstill. Nigerians don't love themselves. Which way Nigeria?..fela.once said & I quote " I wept for Nigeria..😢😢😢
Take Nigeria to court 😂😂😂. Which court?
You people care too much about international thoughts
Very smart man, dangote to drill his own well,? why didn't he think about that,
Not as easy as it sounds. Oil exploration would cost Dangote another billion dollars in Nigeria. Licenses, permits, community wahala, bribes, new partnerships and so on. His best bet is to buy oil from outside Nigeria
So where is NNPC refineries getting their nonexistent crude from?
Why is NNPC refineries still existing?
You people are out of your mind. Where, then, would he get it from? How can you beg for food when your father has food?
Very unfortunate.
What a race?
The oil is running out
This olabode guy is really the face of corruption. Looking at the comments it's really sad how Nigerians readily accept nonsense and excuses.
This guy is being asked a simple question but he is simply chosing to give giberish answers.
No wonder Dangote is having problems.
Get an interviewer who can pin down such characters with facts. This interviewer is also ignorant and is merely intertaining the guest.
What a pity...
This guy is a clown. Quality competition? You mean at importing refined fuel not making fuel. You can tell this “expert” is in the pocket of some crooks.
I don't understand what is happening
Good old fashioned corruption
Too much talk is what is happening. The host of the show, can not ask the right questions and his guest is not offering the right answers.
Nigeria promised Dangote a certain quota of oil in order to meet the capacity required for his refinery. As it stands, Naija does not have the oil they promised him. Reason is that Naija under Buhari collected billions of dollars worth of loans and also promised oil quota to their creditors as a form of repayment for the loans.
And so for the next 30 years we will keep repaying the loans with oil. For Dangote’s refinery to be profitable, he has to import oil from outside Nigeria and also sell the refined products outside Nigeria. Hope this helps…
@@henryyy190 Bullseye 🎯 👏👏👏👍😎
So the all
The story that fuel price will go down is now what
Baba u r talking rubbish....y is nigeria not able to give a nigerian refinery crude....u r here busy dilidialing
Energy expert my foot, very ridiculous
This guy just talking a lot of nonsense. Just get straight to the point. It's called incompetent and stupidity. God cannot do it for us. He has blessed us with all the resources we needed. It's up to us
This man can explain shit, he is just trying not to talk.
😂😂😂umo 9ja😂. Corruption
Incompitence, Curruption & Lies.
A country that discovered oil and gas in the 1950’s is still giving excuses. The problem is simply buried in mismanagement, corruption, nepotism, short sightedness, tribalism, incompetence, laziness, inferiority complex and outright stupidity. This man keeps making meaningless statements, without addressing the main issues. The entire country is doomed. Nigeria should be divided immediately. Politics has become a valid excuse for outright criminality. SMDH.
So when you divide the country, which part will be free of corruption, free of incompetent leaders and free of tribalism against ‘others’? Pray, tell.
@@fabuchap2545 , There’s corruption in most countries. The point is the complexity of this failed British experiment. We are 64 years old and all we are doing is backsliding to the past. It’s 2024 and our Senators are debating about cows and grazing routes. Give me a break. Go to a regional system where we can have fair competition and accountability. Split the country up , if this proposal fails.
@@bigfrank5637 I suggest you are making a correct diagnosis but recommending the wrong treatment. A failure of leadership has occurred across the length and breadth of the nation in all regions and all states, and at all levels within those subunits. We like to fool ourselves that it is “those people” responsible for “our” lack of progress as a state or ethnic group, whether major or minor. Foul. My state’s Governors have all been incompetent, corrupt, lazy and visionless. Breaking up the nation is not going to transform their brains, or the brains of all those that backed them and voted for them for all the wrongest reasons. It will simply make them even more audacious.
Absolute rubbish talk. Common get out of there.
Nonsense
Obviously this man doesn't know much about the international market and how it works.
They should allow Dancote to import its crude from abroad inother to achieve efficiency, Nigeria is a wasted country, they wants Dancote ti go into exploration to source it crude
He is importing his crude from the US, Brazil, Angola and Libya
God bless and guide the president of Nigeria
Who care about any credibility while Nigerian a suffering, you guys went on and sign years years agreement no caring of the future. Shut up.
Honestly this is just talking rubbish
Story
Oh Nigerian people please try oh for i wouldn't want to come visiting and then travelling by foot cause I'm now getting old oh, lonta (Ha-Ha)! See you then and hope to continue doing Business with you guys and kindly let me know the areas in which i can render continued help and support for you're such brilliant people (laugh)! Cheers, stay safe, stay well and hope to see you soon but must keep praying (Amen/Ameen)! Until then it's therefore Goodbye from Him and goodbye from me(laugh)! Khadeeja Alghali-Rahman (London, UK)👍💪😭🤣🥳🎉🕴️🎥🐓🦃🐌🦌🦋🦗🐡👁️⚓🐄🐑🐔🕊️🐾❤️🌴🏞️🦕🐉🐊🐢🦖🤼⭐🏜️🌈🏖️🌜🌛
Ok
Scamm Country Nigeria