NewStats: 3,264,321 , 8,183,335 topics. Date: Tuesday, 10 June 2025 at 03:19 PM 4n2i5h

Use import duty as an example. Importers pay import duties in naira. But the cost is determined at the current naira-dollar exchange rate.

Dangote will buy crudeoil from NNPC with naira at the current naira-dollar exchange rate.

This won't make petrol cheaper.

MasterJayJay:
Use import duty as an example. Importers pay import duties in naira. But the cost is determined at the current naira-dollar exchange rate.

Dangote will buy crudeoil from NNPC with naira at the current naira-dollar exchange rate.

This won't make petrol cheaper.

Of course it won't make fuel cheap but we won't need to import expensive petrols again. Price of petrol can only fall if the naira strengthen against the dollar

It's called voodoo economics a.k.a Tinubunomics

This Naira payment will reduce petrol price if only a barrel is pegged at a fixed Naira price. If they decide to still maintain international oil prices and use prevailing exchange rates, then it’s all voodoo.

MasterJayJay:
Use import duty as an example. Importers pay import duties in naira. But the cost is determined at the current naira-dollar exchange rate.

Dangote will buy crudeoil from NNPC with naira at the current naira-dollar exchange rate.

This won't make petrol cheaper.

alright thanks for your point of view

Now can you please advise the Federal government what to do, since you have the wisdom of Solomon

MasterJayJay:
Use import duty as an example. Importers pay import duties in naira. But the cost is determined at the current naira-dollar exchange rate.

Dangote will buy crudeoil from NNPC with naira at the current naira-dollar exchange rate.

This won't make petrol cheaper.

Illiterate.

At 600k bpd, the govt can use Dangote refinery to mop up excess printed liquidity from the system.

At $80 and an exchange rate of #1,500, a barrel of crude will go for #120,000. Multiply that with the projected daily processing capacity of 600k bpd that stands at #72bn. Multiply that for a typical long term 30 day order and that translates to #2 Trillion naira monthly and for a year #24 Trillion.

The govt can use just this sales to Dangote refinery to mop up excess liquidity in the system printed from thin air by Emefile .

And when you consider that Dangote will eventually sell most of that refined stock in dollars to neighbouring African countries that will be paid through the CBN, you have a major FX earner for the country and a means to reduce inflation caused by too much money in circulation.

🧐

MossadAgent:

Illiterate.

Mumu Ode

Since you can't air your opinion without insults.

Ikaeniyan0:
Of course it won't make fuel cheap but we won't need to import expensive petrols again. Price of petrol can only fall if the naira strengthen against the dollar

Why do you think locally refined would be cheaper than imported petrol?

I honestly don't get the logic

It's impossible to refine fuel locally below ₦1150 .. Impossible

Dangotte Refinery is not coming to reduce the price of PMS. The major advantages are direct and indirect employment opportunities, business opportunities, tax and reducing the amount of forex spent on importation of Crude which is hoped will help the currency to recover.

So stop selling the narrative that petrol will reduce. Ghana, Toogo and Benin Republic even now pay more than we pay for PMS even though they are not richer than us.

MasterJayJay:
Use import duty as an example. Importers pay import duties in naira. But the cost is determined at the current naira-dollar exchange rate.

Dangote will buy crudeoil from NNPC with naira at the current naira-dollar exchange rate.

This won't make petrol cheaper.

This is another interesting angle to the discussion.

Nice one. But do Ecowas countries pay each other in USD?

MossadAgent:


Illiterate.

At 600k bpd, the govt can use Dangote refinery to mop up excess printed liquidity from the system.

At $80 and an exchange rate of #1,500, a barrel of crude will go for #120,000. Multiply that with the projected daily processing capacity of 600k bpd that stands at #72bn. Multiply that for a typical long term 30 day order and that translates to #2 Trillion naira monthly and for a year #24 Trillion.

The govt can use just this sales to Dangote refinery to mop up excess liquidity in the system printed from thin air by Emefile .

And when you consider that Dangote will eventually sell most of that refined stock in dollars to neighbouring African countries that will be paid through the CBN, you have a major FX earner for the country and a means to reduce inflation caused by too much money in circulation.

mrvitalis:

Why do you think locally refined would be cheaper than imported petrol?

When did I say this?

Olachase:
alright thanks for your point of view

Now can you please advise the Federal government what to do, since you have the wisdom of Solomon

Abeg just leave them,they don’t have single dear on their head but always see fault in other ideas.they can criticize even their existence in life.

mrvitalis:

Why do you think locally refined would be cheaper than imported petrol?

I honestly don't get the logic

It's impossible to refine fuel locally below ₦1150 .. Impossible

You're quoting the wrong person because I agreed with the OP.

9jatriot:
Dangotte Refinery is not coming to reduce the price of PMS. The major advantages are direct and indirect employment opportunities, business opportunities, tax and reducing the amount of forex spent on importation of Crude which is hoped will help the currency to recover.

So stop selling the narrative that petrol will reduce. Ghana, Toogo and Benin Republic even now pay more than we pay for PMS even though they are not richer than us.

Garri is not priced by naira-dollar exchange rate. But the crude oil that Dangote will buy is priced by naira-dollar exchange rate.

If you subject any product to dollar exchange rate, I doubt if it can help the naira recover at all.

It changes alot. Even if it is pegged to the international rate. Mossadagent has done a wonderful job of analyzing the situation up there.

Selling crude oil in naira removes the need for dollars which will in turn relieve the pressure on the naira in the FX market.

I don't see any disadvantage here.

The recovery that is hoped for, (note that I used the word hope because Nigeria matter never follows a straight line) is in the reduction of USD demand that petrol was gulping. It is hoped that if assuming for academic purposes that $1M is what is available for everyone to bid for, and petrol takes up to $600k of that demand, the argument is that if petrol now takes only about $200k of the $1M available then there will now b about $800k available for other ventures that require USD compared to the only $400 available before the refinery came on board.

That is the hope right now.

MasterJayJay:


Garri is not priced by naira-dollar exchange rate. But the crude oil that Dangote will buy is priced by naira-dollar exchange rate.

If you subject any product to dollar exchange rate, I doubt if it can help the naira recover at all.

What of the Forex that will be saved when Dangote doesn't need to buy dollars anymore?

The price of the crude in Naira is fixed

kokoA:
What of the Forex that will be saved when Dangote doesn't need to buy dollars anymore?

When NNPC earns in dollars, is Nigeria gaining in forex or losing?

If Dangote buys crudeoil from NNPC in dollars, the dollars stays with NNPC which is not a foreign company.

9jatriot:
This is another interesting angle to the discussion.

Nice one. But do Ecowas countries pay each other in USD?

Most trades on this continent are settled in USD

9jatriot:
The recovery that is hoped for, (note that I used the word hope because Nigeria matter never follows a straight line) is in the reduction of USD demand that petrol was gulping. It is hoped that if assuming for academic purposes that $1M is what is available for everyone to bid for, and petrol takes up to $600k of that demand, the argument is that if petrol now takes only about $200k of the $1M available then there will now b about $800k available for other ventures that require USD compared to the only $400 available before the refinery came on board.

That is the hope right now.

That is hope we really need the rate to appreciate significantly and stabilize.

MasterJayJay:


Mumu
Ode


Since you can't air your opinion without insults.

You are the illiterate if you can't see that pricing our crude in naira will see to naira demand .

If we took this step further and decide to price all crude exports in naira , you will see potential buyers of Nigeria's crude opening FX s with the CBN to purchase our Naira .

If you can't see how that will strengthen the naira and also reduce excess liquidity and thus reduce inflation to the barest minimum then you have no business opening topics complaining about what you obviously don't know jack shit about.

Sheuns:
This Naira payment will reduce petrol price if only a barrel is pegged at a fixed Naira price. If they decide to still maintain international oil prices and use prevailing exchange rates, then it’s all voodoo.

Wrong.


You asking for subsidy regime in crude oil sales to Dangote who has ambitions to sell his refined crude in the international market.

How is this a winner for Nigeria ?

You are advocating for cheap crude sales to Dangote whose refinery has more greater plans to sell their refined crude products to the international market.

Nigeria will lose the FX equivalent to supply Dangote and at a subsidised rate .


This is totally wrong and makes no economic sense.

9jatriot:
This is another interesting angle to the discussion.

Nice one. But do Ecowas countries pay each other in USD?

How do these countries pay for their refined products that is sourced mainly from Europe ? Is it not through FX?

The advantage Nigeria will have through this arrangement is that FX from these new emerging markets will flow through the CBN. Since Dangote will buy in naira, he will be reimbursed through same naira.


The last line is why Dangote is not addressing this issue because Dangote wants to get subsidised crude oil and be paid in Dollars for refined crude.

The man is greedy to the core.

MasterJayJay:


When NNPC earns in dollars, is Nigeria gaining in forex or losing?

If Dangote buys crudeoil from NNPC in dollars, the dollars stays with NNPC which is not a foreign company.

Dangote is only interested in getting subsidized crude be it in whatever currency the NNPC sells to it.

The man is just your typical socialist propped business.

Damgote's only crying now because he expected the NNPC to sell crude to him at a discounted rate so as to make his refinery have the advantage in both the local and international stage.

If Dangote is to buy our crude oil in naira, then he has to sell the products from his refinery back to us in same currency which is naira..

PBAT should be careful with all these policies he is rolling out.. selling crude oil to refineries in naira should come with a clause that the refineries too must sell back their refined petroleum products to Nigeria in naira else we'd be operating at a huge loss and our economy willl collapse completely.
All these ol0dos wey una dey carry as SA wey no sabi anything. We dey watch na.

So you don't understand that it would increase the demand for the Naira and reduce Dangote's need to find Foreign currency?

MasterJayJay:
Use import duty as an example. Importers pay import duties in naira. But the cost is determined at the current naira-dollar exchange rate.

Dangote will buy crudeoil from NNPC with naira at the current naira-dollar exchange rate.

This won't make petrol cheaper.

It depends on how cheap FG sells to dangote at d end of d day

MossadAgent:


Illiterate.

At 600k bpd, the govt can use Dangote refinery to mop up excess printed liquidity from the system.

At $80 and an exchange rate of #1,500, a barrel of crude will go for #120,000. Multiply that with the projected daily processing capacity of 600k bpd that stands at #72bn. Multiply that for a typical long term 30 day order and that translates to #2 Trillion naira monthly and for a year #24 Trillion.

The govt can use just this sales to Dangote refinery to mop up excess liquidity in the system printed from thin air by Emefile .

And when you consider that Dangote will eventually sell most of that refined stock in dollars to neighbouring African countries that will be paid through the CBN, you have a major FX earner for the country and a means to reduce inflation caused by too much money in circulation.

Well said...this people don't understand shit.Dangote is based in Nigeria meaning d whole fx he earns comes to cbn.People forget dangote refinery has capacity to handle half of africa.most countries in west africa will rather buy frm dangote than import frm europe as d high cost of tp will reduce.

Olachase:
alright thanks for your point of view

Now can you please advise the Federal government what to do, since you have the wisdom of Solomon

government can sell at a fixed price in naira. It doesn't change anything if the price of crude is still tied to the dollar.

Crude oil should be sold to local refineries at a subsidized rate not international market rate.
This is what a sensible government should do.