Alhaji Aliko Dangote shouldn't be held accountable for purchasing dollars at a cheaper rate when he was developing his refinery, according to Muhammadu Sanusi II, the 16th Emir of Kano, because that was the real rate the apex bank was selling to everyone at the time.
At first, Sanusi, who voiced his opinion on the matter via the SOP Chat Group, stated, "I honestly do not think it is a good idea for me to make comments on these issues, but some comments surprise me, and I just have to say something."
The emir continued, saying, "The price at which the CBN sold dollars was not fixed by Aliko Dangote. If they purchased on the same day, the rate at which each person received dollars from the CBN was the same. It is therefore not his fault that he purchased dollars at a rate that the CBN itself chose to offer to its clients.
Think about the damage that petroleum product imports cause to our currency, the tens of billions of dollars that are spent overseas, and the enormous losses incurred from theft committed under the guise of subsidies.
By the way, how much foreign exchange did Dangote purchase at this discounted rate from the CBN? What are we comparing against, and how much cash did NNPC take from the federation account in the same year under the guise of operating and turning around its idle refineries?
By the way, how much foreign exchange did Dangote purchase at this discounted rate from the CBN? What are we comparing against, and how much cash did NNPC take from the federation account in the same year under the guise of operating and turning around its idle refineries?
As a central bank governor, I would see the refinery's potential economic impact right away and provide all the necessary backing to any Nigerian who approached me with such a project.
"Let our opinions on foreign exchange policies not cloud our judgment of what is important." The CBN would have to restrict the amount of dollars accessible if it chose to sell them at the below market.
"Considering the impact on the macro, I believe funding the construction of a refinery is preferable to supporting rice importers and, in fact, practically every other enterprise outside of education and health."
"Let our opinions on foreign exchange policies not cloud our judgment of what is important." The CBN would have to restrict the amount of dollars accessible if it chose to sell them at the below market.
"Considering the impact on the macro, I believe funding the construction of a refinery is preferable to supporting rice importers and, in fact, practically every other enterprise outside of education and health."
Muhammadu Sanusi II said, "This is most laughable," to the NNPC's claim that our energy security is compromised by our reliance on a single refinery. In contrast, depending on a nearby refinery offers much greater security than these imports.
It's a very rich argument coming from a company that has collected billions of dollars for turnaround maintenance and hasn't produced a single drop of product from four refineries because it makes more money to keep snatching up rent under the guise of subsidies. There would not be a monopoly if NNPC turned on its refineries. Then, we can check each product's sulfur concentration and contrast it with Dangote's.
It's a very rich argument coming from a company that has collected billions of dollars for turnaround maintenance and hasn't produced a single drop of product from four refineries because it makes more money to keep snatching up rent under the guise of subsidies. There would not be a monopoly if NNPC turned on its refineries. Then, we can check each product's sulfur concentration and contrast it with Dangote's.
"In any case, these people in NNPC do not want to end their lucrative subsidy scam, and I don't think they will end it. If the Dangote refinery is unable to meet local demand, the gap can be filled by imports." As a country, however, we should not condemn Dangote for what he has done as an African to strike a heavy blow to international corporations and the rentier system, as well as for bringing structural change to this economy through value added in some areas.
Additionally, we frequently tell the same stories without supporting data. We've heard that Dangote received favorable taxes, but no one has explained what the tax is, whether he received it all by himself, whether it was extended to a certain industry or group of pioneers, or whether this kind of taxation is actually common to promote investment.
"Instead of killing Dangote, we should try and make more like him," the emir said in his conclusion. Because of jealousy and petty feelings, Nigeria consistently murders its heroes and finest citizens.
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