Topic: Dangote: Forex shortage delays crude supplies (Read 153 times)

If only they know that this method of appreciating the Naira against dollar and sustaining it is not achievable, they would have never started all this and what they’re facing now wouldn’t have been it now. The market speculators have perceived this like a game in a way that they’re also benefiting from the rise and fall in the prices. The recent sell to BDC’s that didn’t reflect in the black market is a sign that they’re tired of their games.


This is unbelievable though, are we lacking the resources to drill enough crude oil for daily production or the cost of drilling them is not sustainable, or the crude oil reserve is depleting? Which I don’t think so with the abundant resources of crude oil available in Nigeria.

This topic na very interesting teaching moment for Nigerians and how business is been done because, e come with two very important approaches to business on both ends.

Normally, we know say, this people them Dey rather buy from us, refine and later sell for us.
Now, we we an buy from them, refine and sell for us. The selling for them no follow o via say, I feel say we need am more here and maybe possible in the future but, I no see us selling the refined petrol to them.
That na to tell you say, price no Dey fall for the petrol be that. If e fall, na slightly and that no be watin Nigerians Dey fine now if we actually get working refineries.

Watin I no understand again be say,
Why a refinery in Nigerian go Dey import watin e get plenty! Is it that the government officials get where them Dey put hand to feed their pocket as them send am overseas or them don enter into unjust policies and business relations with other countries.

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Another thing to note from here be say,
See as China Dey demand US dollar as payment for products. Our own now, we go Dey collect even services from them as loan. Watin I mean be say, them go come work for us on credit instead of to give us monetary loan in some instances and we still become debtors to pay in dollar back to them.
Watin stop us from getting the actual cash and do our biddings with which ever company. This go Dey downside too o, via say, e no go hard thief to take money but even in the other options too, thief still Dey take money. E cast!

Inseurity is becoming worst as economy becomes more tough, communities in the Niger delta continues to fight, youth going to steal crude oil which ends many life's.

Actually is not surprising to see Nigeria dropped to second in crude oil production with this and Dangote idea  for import is good especially since it ensures consistency in production.

I can say the government is against Dangote because we saw the recent fluctuation in naira to dollar price, it's an obvious manipulations by the government but I don't know why they will actually prefer this

Crude oil production in Nigeria decreased. Nigeria that was the highest producer become the second to Libya.


One of the reasons is because of crude oil production challenges in Nigeria.

Maybe these are  also part of the reasons: https://www.nairaland.com/7989514/5-reasons-aliko-dangote-sourcing

Ideally there shouldn’t even be a need for Dangote refinery to even import crude oil from other countries to refine in the first place. The crude oil Nigeria produce even though its not high like some countries is definitely enough for not just Dangote refinery but to also refineries in the country should they start functioning. The reason why I think he is importing crude is possible because it is much easier to get than from our local.

Also just as you have said the crude exportation by Nigeria should be one of the things used to give Naira strength. This can easily be done by the government asking for naira during the exportation instead of the usual dollar used before. This create demand for Naira outside the country and might as well gives it strength or value

If them no want us to use naira again for Nigeria make them talk. For me I see am say Nigeria na the only country wey dey use 2 currencies, naira and dollar and the naira sef still dey of two different types (old and new). If we go use dollar and things go dey cheep for this country, e go better sha but it won't be easy.

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I no support as foreigner go come this country then decide the currency them want their money to be paid. One thing he say person no go ever go USA then say make the manager or director pay them with naira even with the same rate. And again for Nigeria, we get enough crude oil for this country so Tay even oyibo pipo they come drill crude oil for most places for we country. This nah the areas wey get crude oil for Nigeria these places nai pipo villages and crude oil rigs dey those places, now what will happen if Dangote buy those crude oil from those rig inside Nigeria and refined it for em refinery? The money go reduce because it's not international business it's within the country.

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Nigerian also dey among the top countries wey get crude oil So I no see any reason why Dangote go import crude oil from other countries to em refinery.

Something is seriously wrong somewhere in this our beloved country wey be Nigeria, because somethings wey I de hear, my mind no de fit to comprehend am, how come Nigeria, de export crude oil, then an indigenous refinery go come de import di same crude oil. Nothing de make sense again for dis country, because na di more you look di less you see, I no just understand, everything just tire me. 

As for di naira to dollar exchange rate matter, I no de surprised say naira don start to de devalue again, because if you no go to di root cause of a problem, den you come de tackle am from di surface, definitely you no go solve anything. I no go surprise if naira to dollar rate reach 2k for one dollar, because dis people never ready to rescue dis economy from impending doom.

We know Dangote as a well prominent businessman and he cannot deny the fact that he has already been recording massive losses in his asset as a result of naira devaluation against dollar, but ever since the government manipulation to raise the value of naira in other to meet up some target which i believe Dangote plan is part of them, they could maintain such on a prolonged attempt, and as of now, the whole current situation is running back on the said company because they are unable to afford the payment for the importation made due to increasing rate of exchange from naira to dollar, at the end, the ties between Dangote and government and how they have already concealed the whole thing before now will soon burst when they cannot afford to cover up for each other again.

Why in the first place will Dangote immortal a raw crude oil to be refined here in Nigeria at his refinery?
Is there something they are not telling us? Could it be that he is literally importing an already refined product and claims it is been refined there in his refinery?
I am unable to get this right.
Does it mean we don't have sufficient crude for the refinement of this production or we don't have the required crude for such petroleum productions?

Well, the condition of the PetroChina to stand firm of accepting dollars and not naira is just the turn around when Nigerian government is fighting unprofessionally just to devalue the dollar in other to evaluate the value of naira.

There is always consequences when we act without insighting what may come ahead of the future. So right about it, Nigerian government has been throwing stones forgetting they lives in the bricks of glass houses.

Nigeria government is working in pari Passu with Dangote so I hope we don't get lost again my how our federal government disguises when they hides under the red carpets of being genuine and transparent to us while they are not.

So I don't think if Nigeria government can afford to discomfort Dangote. So on the run lets watch out how it plays if they will still pay the PetroChina with the dollar or naira as questioned.
Naira value is already fluctuating meaning out federal government can not keep all measures to stable the naira value.

Do you know that Dangote refinery import crude oil from the US?

I hope you know also that the CBN tried its best to appreciate naira value but it is like a running water that they to make it stop running but building pressure in order to force itself out. Dollar was below ₦1080 in parallel market some days ago but it is now over ₦1300.

Dangote has been unable pay PetroChina for the imported crude oil but delaying as the refinery has yet to issue a letter of credit to the Chinese trader. One source familiar with the matter said. PetroChina imported the two million barrels of crude oil from United States since March 28.

Dangote refinery settle some deals with refined products but PetroChina only wants to accept United States dollar. Let me quote this:


This is one of the ways to know that the price of naira supposed to have been depreciated than what it currently is. Or the government do not want Dangote refinery to be importing crude oil from outside Nigeria?