NewStats: 3,261,541 , 8,174,323 topics. Date: Thursday, 29 May 2025 at 03:24 PM 574b4t

Paraman:
Dangote is buying crude oil from suppliers in the USA, not Nigeria

meaning to say that all the hype APC and its ers were hyping the refinery, you guys did not know that nigeria under APC could not meet the crude oil demands of a local refinery.

rinzaugustine:
Lol…was this the reason Nigerians waited on dangote refinery for more than 8 years or to crash prices? Pity people who actually believe that refinery is functioning

Is it not possible what the Refinery is buying from US is AGO & Aviation fuel. They can make it look to Nigerians as if they are refined in Nigeria.

Last year, the Refinery made attempt to import PMS, I moved against it on nairaland. I still have link to it. Later, the Refinery jettisoned the idea of importing refined fuel.

The way things are going all the dollars invested by the Federal Government and the from CBN are just wasted. All the hopes and aspirations just dashed.

Dangote enjoys from government from Babangida regime till date. This is not what Kemi Adeosun and Emefiele expected.

Exousiang01:


Oga
Dangote refinery needs a feedstock of 6m barrels of crude.
Nigeria produces less than 2m barrels.
Buhari took some loans with agreement to pay back with crude and we still need to sell crude so as to get FX, when you make this deductions how much crude do you think will be left for Dangote. Lets say 500k barrels, how many weeks will he wait so Nigeria can get him 6m Barrels of crude.
And he need this feedstock to remain steady, no to have it one month and not have it another.

Are Nigerians saying Dangote should close down his refinery because his country lacks the capacity to supply the raw materials.

Most companies in Nigeria import their raw materials. Most of the juice yoi drink the concentrates are imported, do we not have fruits in Nigeria?

Lets think and talk based on facts not emotions and assumptions

I am not debating any of the points raised, of course logically if his demand can't be met he has to source products elsewhere. My point is people need to speak to others who raise questions without resorting to insults, it's very uncouth.

It’s a shame

Caspry5:
People still expecting anything from this govt are just wasting their time.. don't expect the dollar to go down anytime soon

We are expecting good things, to come.nothing good comes easily is it the first day you met your wife that you marry or sex her? Everything in life is process don't let peter Obi to fool you

Exousiang01:


Oga
Dangote refinery needs a feedstock of 6m barrels of crude.
Nigeria produces less than 2m barrels.
Buhari took some loans with agreement to pay back with crude and we still need to sell crude so as to get FX, when you make this deductions how much crude do you think will be left for Dangote. Lets say 500k barrels, how many weeks will he wait so Nigeria can get him 6m Barrels of crude.
And he need this feedstock to remain steady, no to have it one month and not have it another.

Are Nigerians saying Dangote should close down his refinery because his country lacks the capacity to supply the raw materials.

Most companies in Nigeria import their raw materials. Most of the juice yoi drink the concentrates are imported, do we not have fruits in Nigeria?

Lets think and talk based on facts not emotions and assumptions

Dangote capacity is not 6 million barrels per day but 650,000 baba.. nor dey cap for here

Nigeria capacity is 1.3 million barrels per day more than enough for that's like half of what dangote wants..

Yes we can't supply enough for that capacity based on current agreement in place with trading partners but the BIG QUESTION:

why not source from cheaper source than America expensive dollar?

Na padi padi government we dey just like Tinubu ran Lagos.

Nigerians are on a Looooooooong thing.

professorPABX:


Is it not possible what the Refinery is buying from US is AGO & Aviation fuel. They can make it look to Nigerians as if they are refined in Nigeria.

Last year, the Refinery made attempt to import PMS, I moved against it on nairaland. I still have link to it. Later, the Refinery jettisoned the idea of importing refined fuel.

The way things are going all the dollars invested by the Federal Government and the from CBN are just wasted. All the hopes and aspirations just dashed.

Dangote enjoys from government from Babangida regime till date. This is not what Kemi Adeosun and Emefiele expected.

You are very smart and totally understand the game and the most painful part of it is that the humongous forex needed for the game will be sourced from Nigeria’s already depleted forex market..meaning that this dollar crisis and uncontrollable inflation and high prices in market is not going away soon

wallrichy:
Exactly, doesn't have the brain to comprehend what's happening in the Nigeria oil and gas sector. Most people on this nairaland platform are more of illiterates and very unintelligent whenever it comes to Economic theory discussion. Though, most are good in tribal fights and useless gossips but a productive discussion, most people are total daft.

Let me use this medium to explain what's happening in this crude oil importation by dangote in layman language.

During the last istration, Buhari istration infact, Nigeria borrowed so much from the foreign countries such as China, India, America etc......

The government MOU for payback on the borrowing was an agreement of Crude oil lifting thus equivalent to the Crude oil lifted plus interest charges. It's quite a stupid negotiation if you ask me cos there's no way it can be equalized to the product been lifted and beside, Fx ain't constant as per the market factors. This decision is one of those stupid decision Buhari and his gang plus NNPC took while in power.

Presently, most of our crude oil are been lifted without payback cos the debts is been deducted as agreed in the MOU. That's the reason we can't produce or rather generate enough crude to supply dangote and others.

Though that is not the only obstacle but also the crude theft and also illegal bunkering. All these makes it very difficult and impossible for Nigeria to supply dangote enough Crude oil for continuous production. Hope you guys know that when a refinery starts producing, it's better and less expensive to keep it running than to stop and later reactivate it. Refinery must have more than enough product before it starts running and producing and shouldn't stop for no reason except there's an overhaul or a major disruption to equipment.

Hope you guys understand better now....

Thank you but I really do no agree with your analys even though your facts are mainly true

Last mont on Nairalan this issue came up I spent a lot of time discussing the issue but it would seem that that was a waste of time

Regardless of what Buhari did and regardless of whether Nigeria has excess 3 million barrels of oil a day

It has nothing to do with Dangote's decision

The fundamental issue is that there are different types of crude oil
Nigeria's crude oil Bonny light at the time I commented last month on Nairaland was commanding a of $9 over the WTI blend which Dangote is bidding for

A number of points to note
A refinery can be set of to refine sweet light blends like ours or a variety of cheaper high sulfur content crudes

Dangote made a strategic decision when building his refinery to set it up so it can refine virtually all types of crude
That would have meant higher set up cost

Why would he do that??

From the get go he was never planning to be reliant on one typr of crude or Nigerian crude

The location of his refinery and the fact that it is set up o receive crude from TANKERS and not by pipeline from the Niger delta should confirm that to anyone

Nigeria does not have the capacity take up many of the other products of crude refining apart from diesel and petrol

So there is no imperative to use the more expensive Bonny light

It makes sense to sell it and pocket that $9 a barrel difference assuming it was Dangote that owned the Nigerian crude

$9 a barrel X 1.4 million X 365 is a lot of money.
Those who need and can better use the Bonny light will pay for it
Today Bonny light is

$93.17
and WTI is $79.42

a barrel

https://oilprice.com/oil-price-charts/

About $14 difference



If Dangote was getting Nigeria oil what price would he pay


Ths is transparent and good bcause otherwise he would be accused of denying Nigeria of revenue


The other factor to bear in mind is NNPC operates in a t venture with the likes of Shell Mobil and Chevron

They own the oil tly and the IOCs would insist on getting the BEST price available from wherever



This same US that we are talking about sells crude and imports crude

The market is dynamic

A some point some refineries in Saudi Arabia were buying Bonny light even thought they were one of the largest exporters

The main and perhaps most important thing is ]

Refining business has nothing to do with whether you have oil or not in your country

Spain has a refining capacity of over 1.5 million barrels a day much of which they export

Do a Google search for largest 10 refineries in the world you will find them in India Singapore Korea etc countries that are not known oil producers

If you have capital and knowhow you can set up a refinery anywhere

They are SEPARATE BUSINESS

Just like there is no major chocolate manufacturing business in West Africa despite producing most of the world's cocoa

rertylentl:
Nigeria one of world's largest crude oil producers now buys crude oil from US. Tinubu have mechanic brain

What exactly is Tinubu fault here? Things are getting worse but we are not doing things differently even till tomorrow. We wait for tomatoes and pepper from the north and want the prices of foodstuff to come down. We all want to buy and sell Chinese goods and turkey clothes and want prices of food to come down. Guy, lets do things differently like in the 60s of few religious homes and more industries.

Lilosio:


Western worshippers spotted..

What grade does the usa has that can't be sourced from others?

The USA buys crude from middle east and sells at higher price to colonies... You are stupid to think there is any thing specific about the crude from the USA that the Iranian oil doesn't have..

School dropout.

Iranian oil is a heavy grade, and not the same as US crude.

Your head is EMPTY, but filled with insults like a typical stupid tout.

CheapHomes1:
but you ended up not saying anything better than what he said

I am not competing with anyone
If you have nothing to say better to keep quiet

rertylentl:
Nigeria one of world's largest crude oil producers now buys crude oil from US. Tinubu have mechanic brain

Why do you always have to abuse?

Nigeria isn’t producing enough at the moment to give to local refineries. The current quantity is our major source of foreign exchange earnings.

If we start producing upwards of 2.2/2.5, which we are capable of, there would be enough for all local refineries to buy.

helinues:
Good

Don't blame Dangote- for this Strategic Move and that is how to think Global, even when local Production is just 650,000 barrel per day!
That means,you still need to Import Crude-Oil from other Countries to keep Production Capacity on- both for Local buyers and Exporting to other Countries!
• Can NIGERIANS now see that NNPC was never designed to make Nigeria Oil Great,for nothing is showing us that !
•that Nigerians Own Shipping - Company/Industries,were never built for Greatness - as they don't have this Large Capacity to Supply the large Numbers of Crude - for such ones being demanded by Dangote-Refinery,as Large Shipping Companies have to be rented by Dangote ,in other to keep the Production moving!
•So,what were those Labour Leader fighting in the Ocean Liners then?
It means that the Money( Forex Money) that should be accruing to Nigerians through Shipping Rentals,will be collected by Other Countries!
•What a Country and what types of leaders have we been building since Independence - just to fight for their Pockets,not to fight for the Future of Youths and their Employments!
So,we refuse to think- Global because of Corruption?
What a Country?

Smell like waste

Topman7:


What trash is this fool saying?

Ignorant drunkard typing rubbish.

Hehe truth hurts.

RhinoChest:


Why do you always have to abuse?

Nigeria isn’t producing enough at the moment to give to local refineries. The current quantity is our major source of foreign exchange earnings.

If we start producing upwards of 2.2/2.5, which we are capable of, there would be enough for all local refineries to buy.

Do you know that ñpcl has unsold cargoes of crude

This country is cursed, now that refinery is available, crude oil has become a problem

What's the difference from buying refined petrol from the US at once, las las na 1500 per litre we go buy this fuel, I trust brother Dangote.😐

Yankee101:
It’s a shame

Bookmarked

APC HAVE SOLD OUR OIL FOR THE NEXT 20 YEARS. THAT IS WHY DANGOTE IS BUYING FROM USA. MAKE I SHOCK YOU. TINUBU WANT TO BORROW OUR PENSION FUND WEY DEM NO GO FIT PAY BACK.

Phantom233:
What's the difference from buying refined petrol from the US at once, las las na 1500 per litre we go buy this fuel, I trust brother Dangote.😐

No economic advantage

Truthsandtrusts:





We are expecting good things, to come.nothing good comes easily is it the first day you met your wife that you marry or sex her? Everything in life is process don't let peter Obi to fool you

If you think this is about peter obi, you are mistaken. I'm just a concerned citizen like you. Can't you see the devastating effects this will have on our currency ? If dollar goes up, is it peter obi that suffers or you and me? We might be okay in our financial lives but what about the people that can't even afford a meal daily? Sometimes you have to look at things from a logical point of view.

Kingkamba:
APC HAVE SOLD OUR OIL FOR THE NEXT 20 YEARS. THAT IS WHY DANGOTE IS BUYING FROM USA. MAKE I SHOCK YOU. TINUBU WANT TO BORROW OUR PENSION FUND WEY DEM NO GO FIT PAY BACK.

The same crude oil that nnpcl says it has unsold cargoes

Thanks my brother, this is so educative and interesting. I really learnt a lot from your write up. I will do more research as you said.

Thanks

Gajagojo:


Thank you but I really do no agree with your analys even though your facts are mainly true

Last mont on Nairalan this issue came up I spent a lot of time discussing the issue but it would seem that that was a waste of time

Regardless of what Buhari did and regardless of whether Nigeria has excess 3 million barrels of oil a day

It has nothing to do with Dangote's decision

The fundamental issue is that there are different types of crude oil
Nigeria's crude oil Bonny light at the time I commented last month on Nairaland was commanding a of $9 over the WTI blend which Dangote is bidding for

A number of points to note
A refinery can be set of to refine sweet light blends like ours or a variety of cheaper high sulfur content crudes

Dangote made a strategic decision when building his refinery to set it up so it can refine virtually all types of crude
That would have meant higher set up cost

Why would he do that??

From the get go he was never planning to be reliant on one typr of crude or Nigerian crude

The location of his refinery and the fact that it is set up o receive crude from TANKERS and not by pipeline from the Niger delta should confirm that to anyone

Nigeria does not have the capacity take up many of the other products of crude refining apart from diesel and petrol

So there is no imperative to use the more expensive Bonny light

It makes sense to sell it and pocket that $9 a barrel difference assuming it was Dangote that owned the Nigerian crude

$9 a barrel X 1.4 million X 365 is a lot of money.
Those who need and can better use the Bonny light will pay for it
Today Bonny light is

$93.17
and WTI is $79.42

a barrel

https://oilprice.com/oil-price-charts/

About $14 difference



If Dangote was getting Nigeria oil what price would he pay


Ths is transparent and good bcause otherwise he would be accused of denying Nigeria of revenue


The other factor to bear in mind is NNPC operates in a t venture with the likes of Shell Mobil and Chevron

They own the oil tly and the IOCs would insist on getting the BEST price available from wherever



This same US that we are talking about sells crude and imports crude

The market is dynamic

A some point some refineries in Saudi Arabia were buying Bonny light even thought they were one of the largest exporters

The main and perhaps most important thing is ]

Refining business has nothing to do with whether you have oil or not in your country

Spain has a refining capacity of over 1.5 million barrels a day much of which they export

Do a Google search for largest 10 refineries in the world you will find them in India Singapore Korea etc countries that are not known oil producers

If you have capital and knowhow you can set up a refinery anywhere

They are SEPARATE BUSINESS

Just like there is no major chocolate manufacturing business in West Africa despite producing most of the world's cocoa

[quote author=bnanny post=129983900]Dangote is a business man. His private company can buy crude from anywhere in the world. Anyone from tinubu or obi camp who is paid Should set up his/her own refinery period.

OGBENI!!, you know NOTHING.
Stop commenting above your pay grade.
Why would you buy and ship crude from USA if it's available in your backyard?.
The only valid reason is because it had been SOLD OUT IN FUTURES.
Meaning "IN ADVANCE".
Dont defend NONSENSE!!.

rinzaugustine:
You are very smart and totally understand the game and the most painful part of it is that the humongous forex needed for the game will be sourced from Nigeria’s already depleted forex market..meaning that this dollar crisis and uncontrollable inflation and high prices in market is not going away soon

My brother, you are 100% correct. We discussed this issue last week. One of the discussants just drew my attention to nairaland. Last year, Dangote Refinery wanted license to import refined petroleum products, it was on nairaland. After much outcry they jettisoned the idea. Now, all the stress and tension on Dollars that Kemi Adeosun as Minister of Finance and later Emefiele as CBN governor said will disappear with Dangote Refinery is a mirage. Wasted efforts.

We also discussed the present PMS crisis that started few days after Tinubu travelled abroad. Now, it seems each time Tinubu travelled, a form of crisis must happen.

Gajagojo:
I am not competing with anyone
If you have nothing to say better to keep quiet

do you have anything to say? what if I dont keep quiet? who said anything whether you are competing or not? if you are not competing, then what were you telling him?

Basically danote refinery will not solve the nations problem but rather put the nation at risk

Topman7:


School dropout.

Iranian oil is a heavy grade, and not the same as US crude.

Your head is EMPTY, but filled with insults like a typical stupid tout.

Lol india and china run it's industrial complex with Russia cheap gas and is performing better than every other country...

Shut up with your light crude stupidity, the question is profit an every calculations proves USA gas is not profitable for business..

You are a fool sucking the balls of foolishness.

So all the fg concessions was for what exactly

wallrichy:
Thanks my brother, this is so educative and interesting. I really learnt a lot from your write up. I will do more research as you said.

Thanks

Thanks
I wrote pretty much the same thing on Nairaland last month on another thread
Sometimes it feels like you are wasting your time