19 Comments
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Nonso O's avatar

In today's edition of Nigeria is a normal country with not so good governance.

Josie Elewa's avatar

This is so good! But Nigeria is so difficult and so captured by greedy criminals that the chances of these ideas being adopted are extremely low. It’s so unfortunate because we literally could have good things if not for our greedy and myopic “great” men.

omolomo's avatar

ah ah Inferiority Man you’re here too?

Olamide Olanrewaju's avatar

When we have smart men like you who can battle them toe to toe?

Wringing hands and blaming "leaders" is just not it. That's how the world has always worked.

The kingdom of God suffereth violence and the violent take it by force.

Ikenna's avatar

This is such a great read. And seems to be the end goal for oil refining. Reform, will be difficult given how Nigerians (in government especially) worship Dangote.

Toluwase Olugbemiro's avatar

I had many aha moments when reading through. Learning a lot on how the market works but even much more on why the market has behaved the way it has

Thank you for putting this together

Omo Amu's avatar

Brilliant article, as usual!

In any place where government has any interest in governing, this post would have prompted a public hearing.

Alas, you cannot wake people pretending to be asleep.

PS: when we eventually break free from the cement lords' chokehold, I hope you get a befitting honour with a Nobel-style citation - "awarded for his contribution to..."

Canbini's avatar

Yet another classic! Thank you for your tireless crusades on the F.O.O.D curse. Very much fancy the Brazilian solution as a template for the Nigerian version of the challenge. Getting Ebonyi & Ibeto to get out of the other's way on restarting production at Nkalagu would also help broaden the market spread wise even if not a sufficient dent on quantity

Feyi Fawehinmi's avatar

Thanks, very good point on Nkalagu

Eloho Liz Ug's avatar

Superb work: so thorough…so illuminating and still heartbreaking! Quite fascinated by the diversity of the cases in the case studies- we really have no excuse. Thank you!

Ronke Bankole's avatar

I get what you meant with the comment you posted on Tobi's last article. So, now, we (most likely) have a cement cartel. I hope some "economic reporter" will take it up and give us hard evidence/numbers. Even if they can't access their confidential documents, their market behaviour can be telling.

To the extent that they're numerate or care, our legislators will need those numbers to reform this horrible cement policy.

Feyi Fawehinmi's avatar

Yes, that's why I like the Indian case in particular as it helped to establish that deliberate capacity underutilisation is a form of cartel behaviour. That is more than enough for any serious regulator to take that as their marching orders. But we continue to observe

Afolabi Lawal's avatar

Good one, Feyi.

Olu O's avatar

Thanks for this as always.

It remains strange why the regulators or the Tinubu government ideally since the FCCPC is relatively weak compared to these companies, wouldn’t even look into this. It’s on brand with Nigeria’s government prioritizing the needs of a few over the entire country’s.

Timothy Olúwaṣeun's avatar

Great article,

I feel a major issue for capacity utilization is always due to O&M. Seen instances where lines are shut in due to excess cement in Silos and excess clinker in open space wiith no space for storage- storing clinker in open space affects its quality. I think this still boils down to pricing and competivness of the market.

Ronke Bankole's avatar

I think this is more than O&M issue. If it is, it'll be different strategies for different companies because that's the essence of competition. In an industry where the finished product is basically standardised, you stay ahead through O&M efficiency. But this looks like a coordinated move by the industry. That's why I like the idea of bringing in a competition plus fine.

Seun's avatar

Thank you for this. All the recommendations are practicable as long as the government is ready to put a dent in poverty and work for development.

Harley Nuel's avatar

Good quality bruv. Really love your stories. It inspires me