While Dangote is a new entrant into the 'racket', Indorama has been enjoying such discount for many years and repatriating profit to Singapore & Indonesia.
I checked ownership of the Eleme fertiliser plant, it's partly owned by Indorama while the majority owner manages (& holds) his share through a trust.
No wonder they are not listed on the public exchange and also Notore is delisting from the NGX.
My suspicion is they all want to hide their financials.
Alhaji (Dangote) says he will list this year for transparency, let's see what he does.
If I'm not mistaken, one of the conditions of the privatisation of Eleme to Indorama was them promising to list the business. As they say, that one has gone into voicemail
Wonderful breakdown of a topic whose importance and implications might otherwise have gotten lost in the technical jargon. I always learn something new reading your articles.
To summarize all this, I would simply posit that in a country where anything is possible, everything could well happen.
Excellent investigative work Feyi, much appreciated. I believe that most of the comments here have covered the general incredulity at this fiasco. Thus, my questions to you are:
1. What recourse is there, either via regulatory appeals, social media or via the courts to fight this?
2. Is it possible to make this a regular sector-by-sector series that exposes such absurdities and hopefully can become a catalyst for change? I'd be happy to support with No 2.
To be honest this one isn’t really difficult. It’s really for the authorities to enforce what they think should be the national returns from providing these guys with gas on favourable terms. It’s not hard or uncommon. Egypt subsidises gas for urea producers and in exchange govt buys 55% of their output at heavily discounted rates while they can sell the remaining 45% can be sold at any price they like. In Russia for the last 3 years, there has been a policy in place for domestic prices to be 15% below export prices. The people who wrote that calculation into the PIA can definitely write something about the domestic market if they want to.
That’s why my question at the end of the piece is why is this being allowed to happen? Is food prediction not important? They know it is thats why they created GBIs and gave them cheap gas. It’s not rocket science to fix
Yet it IS ‘allowed to happen’! So the larger national political issue refuses to go away. Who will take up this daunting and very dangerous challenge? Excellent piece btw
Looking at how wicked Nigerians are, you will realize that it's not only politicians that are our problem but different individuals at different levels.
Like I said, I did not believe it myself. I have checked and triple checked to be sure I’m not going insane. But it is real and it is happening in broad daylight (where the craziest things happen in Nigeria)
This articles confirms that most Nigerian industrialist are proper Rent-Seekers as you have previously mentioned. Profiting at the expense of poor regulations and corruptions, without any innovative thinking or invention. The funny thing is how they all come outside to brag about their "Smartness".
My deduction from your articles that I have read makes me believe that you believe in free market (might not be to the extent of the libertarian/anarchist model).
This is just an appreciation comment for your work. It has not only continue to solidify my belief in free market but also help in bringing to my awareness the systematic ways the Nigerian government has continued to improvish it people through regulation and adoption of principles against the free market.
This is digging deep, I really appreciate this, it's deeper than the shallow political scenes they keep feeding us.
Please keep educating us, we want change but we don't even know these things.
So Notore, Indorama and Dangote get their feedstock (and primary ingredient?) at a highly subsidised rate and sell to Nigerians at rip-off prices...
Nigeria is really a Gangstaz Paradise!!!
Thanks DoubleEph
While Dangote is a new entrant into the 'racket', Indorama has been enjoying such discount for many years and repatriating profit to Singapore & Indonesia.
I checked ownership of the Eleme fertiliser plant, it's partly owned by Indorama while the majority owner manages (& holds) his share through a trust.
No wonder they are not listed on the public exchange and also Notore is delisting from the NGX.
My suspicion is they all want to hide their financials.
Alhaji (Dangote) says he will list this year for transparency, let's see what he does.
If I'm not mistaken, one of the conditions of the privatisation of Eleme to Indorama was them promising to list the business. As they say, that one has gone into voicemail
Wonderful breakdown of a topic whose importance and implications might otherwise have gotten lost in the technical jargon. I always learn something new reading your articles.
To summarize all this, I would simply posit that in a country where anything is possible, everything could well happen.
Ha! My original closing line for the piece was going to be "In Nigeria anything can happen and nothing will happen" before I changed it
As I read through the article, my expression went from "wait" to "how?" to "why?"
That this is happening at a time of literal famine is incredible.
Excellent investigative work Feyi, much appreciated. I believe that most of the comments here have covered the general incredulity at this fiasco. Thus, my questions to you are:
1. What recourse is there, either via regulatory appeals, social media or via the courts to fight this?
2. Is it possible to make this a regular sector-by-sector series that exposes such absurdities and hopefully can become a catalyst for change? I'd be happy to support with No 2.
To be honest this one isn’t really difficult. It’s really for the authorities to enforce what they think should be the national returns from providing these guys with gas on favourable terms. It’s not hard or uncommon. Egypt subsidises gas for urea producers and in exchange govt buys 55% of their output at heavily discounted rates while they can sell the remaining 45% can be sold at any price they like. In Russia for the last 3 years, there has been a policy in place for domestic prices to be 15% below export prices. The people who wrote that calculation into the PIA can definitely write something about the domestic market if they want to.
That’s why my question at the end of the piece is why is this being allowed to happen? Is food prediction not important? They know it is thats why they created GBIs and gave them cheap gas. It’s not rocket science to fix
Yet it IS ‘allowed to happen’! So the larger national political issue refuses to go away. Who will take up this daunting and very dangerous challenge? Excellent piece btw
Quality detective work as ever. I'll say it again. Nigeria is a giant anthill where a selection of the ants are busy manufacturing insecticide.
Looking at how wicked Nigerians are, you will realize that it's not only politicians that are our problem but different individuals at different levels.
We need serious prayer walahi.
This is actually unbelievable.
How is this allowed to continue with the amount of food insecurity we are facing.
Like I said, I did not believe it myself. I have checked and triple checked to be sure I’m not going insane. But it is real and it is happening in broad daylight (where the craziest things happen in Nigeria)
This articles confirms that most Nigerian industrialist are proper Rent-Seekers as you have previously mentioned. Profiting at the expense of poor regulations and corruptions, without any innovative thinking or invention. The funny thing is how they all come outside to brag about their "Smartness".
The Quote “Nigerians are a captive market” resonates!!. But why is that the case ??
If export prices are lower, then shouldn’t import prices be around the same ?? (Slightly higher but not exorbitant).
Why aren’t imports a viable option which could then make prices competitive within the country ??
This is a captured market.
My deduction from your articles that I have read makes me believe that you believe in free market (might not be to the extent of the libertarian/anarchist model).
This is just an appreciation comment for your work. It has not only continue to solidify my belief in free market but also help in bringing to my awareness the systematic ways the Nigerian government has continued to improvish it people through regulation and adoption of principles against the free market.
When you add the currency devaluation and favorable exchange rates they were given, everything gets clearer.
Really good read. The one happening with the Sugar backward integration policy is even worse. Well done
Just heartbreaking! Thanks for this illuminating piece.