Tuljaking:
please what is the minimum recquirement to pass this course

Shut up and read, that is all that is required.

jaybee:







Sorry Sirs, actually, CONOIL is owned by Mike Adenuga

Ok boss, thanks for the correction

4. Not sure if there was a bill but that one is only semantics.

5. Finally I think my explanation in no. 2 also answers the no. 5 question.

Kx:


Can you see how close the govt of the soon to be ex- president is with him even with Farougate scandal?
One word- intertwined.
They are too close yet he cannot call them to order. Why, serious vested interest.

Otedolar- Owner of Zenon- always in close contact with d seat of power
Ifeanyi Uba- Capital Oil- major financier and coordinator of TAN.


Can we now see that the issue was not subsidy but instead govt's inability to curb corruption in the operation of the scheme because of deep roosted closeness with the marketers and perhaps vested interest?

It is all vested interest. Just like the case of Buruji Kashamu the senator elect in Ogun state who is facing drug issue is a major stake holder of the PDP and financier too.

gohome:
Question



Answer

[b]Nigeria can no longer afford to pay subsidy on petroleum products full stop. Corruption or no corruption we do not have the money to pay. You have to let it sink in your head. We have an infrastructural decay that will take 200 billion dollars to fix, you have annual 'deficit' budget of less than 20 billion dollars of which 40 percent is used to fund lazy states and you want to continue to spend 25% of your the remaining budget to subsidize PMS?

Hope the anology below helps

You are the head of your house, and you have an annual budget of 100 naira. Rent in a dilapidated house is 20 Naira. School fees is 20 Naira. Transportation to work and school is 30 Naira. Fueling your generator is 30 Naira. Let say you want to start up a new business to increase your income and as such you need to save 20 Naira. You also need to move from your present apartment because the ceiling leaks water any time it rains, which will require you save an extra 10 Naira. You took a loan from the bank, and the monthly deduction is 10 Naira. You have relations that cannot run their family and they have come asking for money because the landlord is about to evict them from the house. In the middle of all these, Something happened and your annual budget is reduced to 50 Naira. Will you keep paying for fuel to light up your house while you cannot pay rent and your kids can not go to school?

Before you critic always put yourself in a leadership position and provide practical solution
[/b]

I have a little problem with the analogy as it undermine the importance of petrol to Nigerians. You need fuel not just to power generators but for many other goods and services. The cost of those goods and services depends on the price of petrol so such goods or services will go up with the price of petrol. For example, due to the recent fuel shortage in which my initial petrol monthly spending is 25% of my salary, it is now 50%. I am now poorer than i used to be just because of fuel. i may need to dump my car and life becomes harder.

In the end, government will become richer if subsidy is removed, but Nigerians will become poorer. So removal is not the most suitable option. The best option is refining our own petrol. One more thing, the government who is crying for money has the responsibility of refining the crude oil, if they cant do it, they should bear the brunt not innocent Nigerians. Its their failure, so they should deal with it.

omenka:
Interesting!

I have just a few questions.


1). How much were previous administrations paying for subsidy??


2). How much did Jonathan pay on assumption of duty as the president and in subsequent years as president??


3). What necessitated the geometric increase in the expenditure on subsidy soon after Jonathan took over?? It was about 300billion on the budget but burgeoned to nearly 2trillion at the end of the fiscal year. Was there a corresponding increase in the demand of products to have warranted such increase in "supply"?? Did Nigeria get thirstier for petroleum products??


4). Was there any supplementary budget passed by the NASS to accommodate the increase as stated in #3??


5). There were about 40 importers of products prior to Jonathan's regime. After he took over, the list went over the roof to about 150!! What was the reason behind this??


#waiting.

Cc: gohome.

I am not a politician. I am a resercher. This topic has nothing to do with Jonathan. The thread is for you to prove if PMS subsidy should continue, if yes why and how.

isaajibola:
1- What is subsidy in the first place?
2- I think we shouldn't even be talking about subsidy in this country! We have crude oil, we exporting and we importing! Why can't we be using our crude oil to trade for the refined one? Why are we paying for importing and why is it that the importing price is higher than the exporting price, please elaborate?

3- No crude oil in South Africa and yet they paying less than Nigeria that have crude oil. A litre of PMS in South Africa is 90cent which is N14.80 in Nigeria currency... Are they not paying for subsidy in South Africa? What is called subsidy please?

#I believe subsidy is a scam.

#To the PDP fans; the likes of Barcanista, Temitemi, Mogidi and the likes, people that are replying those guyz don't have time too. If at all you guyz have something to do, you wouldn't be on Nairaland every minutes and seconds all day. I think Barcanista and the likes are just extraordinary fool because, they reasons upside down and they only want bad for this country. Since they don't have anything to do, they tends to sit with their phones and be posting rubbish all day. #IdleHand

Price of a liter of fuel in South Africa is the equivalent of 1.08 U.S. Dollars http://www.globalpetrolprices.com/gasoline_prices/#hl97
Get your facts right, do some research, it's not hard, Google can be your friend if you want it to be. Stop misinforming others. Please Nairalanders learn to do a little Google search before stating anything that can be fact checked. It goes a long way in making everybody more informed.

9jatatafo:


Thank you and thank you very much

Not very correct. Con oil is owned by Adenuga and Forte by Otedola.
Not that it matter much,though

mbulela:


Your craze no dey here.
Enough of the trolling. Let me go and read your economic summations as it concerns the topic.
So where do you stand with the removal of subsidy?

Thanks alot! U made my Day!

Back to the topic, Subsidy removal is akin to Currency Devaluation! Both are good economic policies for a developing nation! However, our problem as a nation is the collective lack of moral ethics and reorientation! It's unfortunate that no one is willing to make sacrifices for the good of our Nation. At this stage of our national development, I would recommend for a partial removal!

Imagine we spending over 200billion naira on this Since last year, It's quite heart rending! If half of this amount is channelled to a particular refinery, I see no reason for fuel importation for domestic use! The truth is not far fetched, rather our leaders are building vast empires of selfish cravings for their tenth generation!

Let's go for a partial removal for only 2 years and in the third year a total removal. Before the third year our refineries should at least one, be cracking crude to It's different products enough for domestic consumption!

mbulela:
Not very correct. Con oil is owned by Adenuga and Forte by Otedola. Not that it matter much,though

Information stored!

Yomieluv:
If subsidy is true,why is the government afraid to remove it?

And what are the benefits of subsidy removal?

The government is not afraid to remove it. We refused to let the government remove it.

Sunnycliff:


Thanks alot! U made my Day!

Back to the topic, Subsidy removal is akin to Currency Devaluation! Both are good economic policies for a developing nation! However, our problem as a nation is the collective lack of moral ethics and reorientation! It's unfortunate that no one is willing to make sacrifices for the good of our Nation. At this stage of our national development, I would recommend for a partial removal!

Imagine we spending over 200billion naira on this Since last year, It's quite heart rending! If half of this amount is channelled to a particular refinery, I see no reason for fuel importation for domestic use! The truth is not far fetched, rather our leaders are building vast empires of selfish cravings for their tenth generation!

Let's go for a partial removal for only 2 years and in the third year a total removal. Before the third year our refineries should at least one, be cracking crude to It's different products enough for domestic consumption!

The problem most people have is not the semantics of subsidy or no subsidy.
The painful part is the scam involved in the process. people making billions for fuel they did not import.
There will be pain to go with the removal but let us go for it and reduce one conduit of cooruption.

Segadem:
Let be truthful to ourselves, are we ready to buy a litre @ N145 or more?
Are we ready to pay times two of what we are paying right now as transport fee,even wen ur salary still remain the same?
if ur answer it yes,then no problem.

We were at 65 Naira, It increased to 97 Naira, Did we die?

9jatatafo:


Information stored!

Jimoh Ibrahim's company is Global fleet.

bignene:
if civil servant are to buy Pms for 180-220 per liter,there is need for salary increment

No need for salary increment. More recurrent expenditure. Just need to put infrastructure in place. Tell your state Gov to provide diesel engine power public transport

Yomieluv:
If subsidy is true,why is the government afraid to remove it?

And what are the benefits of subsidy removal?

Your budget is a mere 4 trillion. Guess what the budget of New York City with 8.9 million people alone is 15 trillion. Your government is poor, it needs money from anywhere. Help it.

Help it create a level playing field to unlock new opportunities. If we show investors we can buy fuel at 200 to 250 naira a liter, you will see them come. We then will be talking about 200K direct jobs easy and another 5 million indirect jobs.

Your country is poor. You need to start paying at least 30% tax so your government can run your country.

If you need to subsidy, it should be on diesel not PMS. Diesel runs the economy not PMS. People that create jobs power their industry (Oil, Bank, Textile, Telecoms etc) with Diesel. They need a break. The Polical will to take PMS subsidy out is the problem.

Damager:

we shal ask buhari d qestioon dey asked gej..shw us d cabal

True! Seconded.

Realdeals:
subsidy a scam! visit this thread https://www.nairaland.com/2339465/buhari-not-use-oil-marketers

"...In the short run, we will not use the marketers for the PMS importation... we shall give all our local PMS needs that NNPC cannot refine to foreign firms to refine for us and pay them the cost of refining...
"We shall provide transport to ship crude to and from the foreign refineries and pay the cost of refining for us...I believe that will remove the subsidy fraud in the short run...
"when I give you 200,000 bpd to refine, you must give me the equivalent outputs that it will bring in kerosene, PMS, Diesel etc...
"...But in the long run, we shall encourage local refineries..."

If you can do this, the you can run your refineries. The sad part is you cannot. Let the Market drive boom in the downstream sector. Alot of potential we have lost with government interference.

adanny01:




In the end, government will become richer if subsidy is removed, but Nigerians will become poorer. So removal is not the most suitable option. The best option is refining our own petrol. One more thing, the government who is crying for money has the responsibility of refining the crude oil, if they cant do it, they should bear the brunt not innocent Nigerians. Its their failure, so they should deal with it.

I have issues with the point above.
As much as the increase will hurt us all in the short term, it is for our good.

Secondly, you make it sound like govt being richer by subsidy removal is a bad thing. The bad thing is what govt does with the increased riches.
It will take a while for us to be able to refine the petrol that we need.
What do we do in the interim? keep enriching crooks in the name of subsidy?
As it is, presently thieves submit invoices for fuel that was not even imported.
The whole fule importation business with subsidy is laden with corruption and it is almost impossible to eradicate.
Best thing is import it and let it sell at normal rate. Let govt keep its money and use it for something else.
Then we can address the stealing of govt funds at other sources.
Let us close this conduit and go address other sources.

mbulela:


The problem most people have is not the semantics of subsidy or no subsidy.
The painful part is the scam involved in the process. people making billions for fuel they did not import.
There will be pain to go with the removal but let us go for it and reduce one conduit of cooruption.

I understand and quite agree with you. But we can thoroughly screen this importers and revoke their licences while gradually taking away the subsidy!

Realdeals:
@ gohome

What happen to the 445,000 barrel of crude produced for domestic consumption

450,000 for domestic consumption does not fall from the sky. You have to produce it. It cost 30 dollars per bbl to produce it. Do the maths. Depending on the oil price, you have the potential to lose 9 billion dollars a year just because you would not sell it. In total we are talking 15 billion dollars. Does it make sense to borrow money and pay for subsidy? With an infrastructural decay that needs hundreds of billions to a trillion dollar to fix, you want to pay subsidy? You are in a country where the government expenditure per person to tax is the highest in the world and you want to still pay subsidy. Your economy (mass transit, banks and industries) runs with diesel not PMS

Good topic.

bandely:

I see some folks hammering it that they told the rest of
Nigeria that "subsidy" should have been totally removed in
2012.
Well, I (and I know a lot of people too) supported the "non-
removal of subsidy" then on the grounds that:
1. Technically, they may not have been anything called
subsidy, as GMB reiterates in his recent interview with Daily
Trust. Rather, what we might have had were loopholes for
people who were hell-bent of running the country aground.
Suffice to say the "subsidy" may have been a facade


It exist.


[quote author=bandely post=34137697]
2. The second and most important one is that, even if there
is subsidy, the government of the day (2012) cannot be
trusted with the money realized from total removal of
subsidy, due to the perceived gargantuan corruption and
misappropriation that went unabated in the administration.
The logic was, we know they are going to steal it, then let's
have it in whatever manner instead.
I make bold to say it was the best decision to take as at then, and I'd gladly support it again (given the same
circumstance), afterall, in the end, the GEJ administration
did not act contrary to our belief that the money would
"disappeared" via corrupt means as witnessed with SURE-P
fund, the CBN-NNPC $20Billion among others.
However, an opportunity presents itself for GMB to totally
remove the subsidy, if at all the scheme exists! Nigerians
won't complain much this time, afterall, they've bought it
already this week for around 500naira per litre.

Corruption or no corruption, Nigeria is poor and cannot afford to pay subsidy on PMS. If subsidy should be paid it should be on diesel that runs the economy not PMS

mbulela:
Jimoh Ibrahim's company is Global fleet.

I thought Jimoh Ibrahim was into insurance and he owns NICON.

Sibrah:
Intellectual subsidy!
Why is diesel still fixed at N140/Ltr when price of crude has gone through series of fluctuations since 2012?

The price of crude oil is not directly proportional to the price of diesel. In other words if the price of crude oil is reduced by 40 percent, the price of diesel will only reduce by 5% or less The reason being diesel is a necessary by product from the very cherished PMS. It's prices are determined by refining margins amongst other factors. These margins are calculated from the composition of crude refined

The price of diesel has dropped in several countries but risen in others. From July 2013 to July 2014 (oil price peak), the retail price of diesel dropped by 3.6 percent in Germany. In Japan, prices increased by 9.7 percent during the same time. The United Kingdom had some of the highest prices for automotive diesel, reaching 1.93 U.S. dollars per liter in July 2014. Today in the UK, the price of diesel is 1.91 U.S. Dollars.

Doracle2:
With the reduction in crude oil price by almost 50% in the last 10 months, not sure we would be paying more than N120 without subsidy.

There should be plans to refine locally which should further reduce the price of petroleum products

You would. Think exchange rate. price in internation market plus/minus 1.1 dollars per litre.

tenry:

Oga Con oil is owned by Jimoh Ibrahim. Forte belongs to Otedola

Con Oil is owned by Adenuga, Glo Boss.

holuphisayor:

govt also needs to build more refineries before removing subsidy

A cheap 60K capacit refinery will cost 3 billion dollars we need 6. Government is broke and dont have money to build. If they do? they cant maintain it. It is the practical fact. Only private individuals can. They wont if you have full government interference just like the markerters are facing at th moment.

emiye:


90cents is not N14.80 oooo

90 cents in nigerian currency is like N170.

90cent of South Africa not US cent o. Rand and Cent is South African currency.

PassingShot:


You will be surprised that even after the "subsidy" is removed, fuel will not sell for more than 100 naira a liter. You know why? It's because most of what is claimed as subsidy for fuel consumed locally is false. No subsidy in the true sense of that word.

you can not change the worth of a product by just wishing. It is 1.1 dollars per litre.

Rich4god:
Price of PMS in Venezuela is less dan 50naira per liter.... For those of you thinking its difficult to go below the present 97 naira..Abi no b d same refinery dem dey use refine dia own oil... The problem is our govt and corruption...

The price of toothpaste and other groceries in Venezuela is 0 Naira.

PassingShot:

These people will buy their head in shame soon when they find out that we still buy fuel at about the same price now even without "subsidy".

We have been scammed by Jonathan and his cohorts but soon the whole world we tremble when revelations start to come out!

It is mathematically impossible to buy PMS below 1 dollar per litre at the current crudeoil price without some form of subsidy