"Don’t misquote me: I said the Central Bank of Nigeria and the Federal Ministry of Finance have complementary roles but the CBN is independent. But of course there is coordination".......Okonjo Iweala

baralatie:

I was thinking of moving forward to a more sustainable solution having identified the above observation.
in your Op,the solutions were more like to sanitize the oil and gas sector but after been sanitized.is it sustainable to operate a system that exist as of present.

jpphilips:


Why will you want to suffer people when there are things you are not doing right? the subsidy regimen as it is today is not sustainable, no doubt about that, so, it is not a question of whether subsidy will go but a question of "how will subsidy go"?
The outright removal of AGO subsidy brought some latent issues for consideration.
Most people who push for outright removal have failed to see that subsidy plays two functions;

1) Lower energy cost
2) consumer protection.

Any plan or model, that ignores any of those points above will spell disaster for Nigerians.

before 1998, the Russian govt banks guarantee LOCs for imports whether subsidized or not, due to the devaluation, the government made a paradigm shift and left LOC'S for commercial banks........Jp philips

The government of Russia guaranteed LOCs (which means they incurred all liabilities)....Kabonic

baralatie:

okay! I get your part of the model
but the issue of consumer protection should be the CBC(consumer protection board). it could be enlarged and have increased powers to supervise the protection of the consumer end

I can't join issues with Nebo till I am convinced beyond reasonable doubt, pipeline operations are not done in the moon, if Nebo can see vandalized gas pipelines, why not me? does he have a special eye?.....jp philips

why do you think it is the minister of power that replaces(or is responsible for replacing vandalized pipelines)?.....Kabnonic

jpphilips:



That is where outright removal (deregulation) is a bit tricky, once you deregulate, the government will lose control completely, does the government tell phone sellers at Computer village how to sell their goods?
But this is energy we are talking about, the "racketeering" and "cabalism" will never allow a free market after deregulation hence it is not in the interest of the people.
The only protection we have in the downstream sector is subsidy, it just has to be phased out not removed outrightly.

Can you brief us further the experience of NECONDE where they have operated such assets to justify the transfer. ....Jp philips

NECONDE is a consortium of 3 (4) companies:.....Kabnonic

baralatie:

that is the problem,partial subsidy of petroleum as at now is killing govt and even the cabals can see it can't be sustained.
a system has to be structure to negate "racketeering",what if a price structure and control regime is in place through a governing council (e.g. like what is been practiced under telecoms)

In 1998, Russia devalued the ruble, a move necessitated by a global fall in crude prices (you wont say it is apple vs oranges right?), some measures were taken and one of it was, govt banks stopped issuing LOC's for importers,..........Jp philips

Firstly, government banks do not issue LOCs to our local importers. The private banks do and that was why the importers insisted on being paid before taking any orders......Kabnonic

Mention one country in the world with proven gas reserves like Nigeria, practising the DSO model? concise and succinct please!!.....Jp Philips

DSO is designed in preference to the Nigerian local companies. Specific gas quantity must be distributed (or sold) locally before exported. Also, the demand for gas in Nigeria is steadily increasing.......Kabnonic

jpphilips:



Point of correction, the cabals want subsidy removed more than Nigerians want it, the Jonathan's administration sold us a dummy during the 2012 crisis!!
The telecom model will not work because Petroleum products are essential commodities, once you remove subsidy, you cannot decide for the cabal what to sell, so you have left yourself vulnerable to price fixing, hoarding and other forms of economic sabotage, that was what we saw in AGO.
with a subsidy regimen, the government can easily intervene, it got so bad that even the Government's products are stored in the tank farms of the same cabal, so once they down tools, the government is trapped.
just one example of such inefficiencies that phase 1 will address.

NPDC oil production will no longer be part of the Nigerian JV oil controlled by senate approved budgetary benchmark....jp philips

The Nigerian JV structure is not subject to any Senate approval/vetting. Maybe from the President through the Minister,.....Kabnonic

baralatie:

as long as it is this subsidy,govt will groan!

jpphilips:


Stop twisting my words, I never told you that Russia transferred LoC's Liability? I used the phrase "Paradigm shift", for the records, Before the devaluation, Russian Government owned banks issue LOC's, in other to absolve the government of liabilities accrued due to devaluation, the russian government stopped the government owned banks from issuing LOC's, it is there in the article you refused to read.

A Commercial bank who issued LOC's incurred a liability as much as $500,000, the reason I used it here is because a sane country did something to avoid a liability the co ordinator of your economy has incurred on Nigeria.

some measures were taken and one of it was, govt banks stopped issuing LOC's for importers, it is routed through private banks who bear the brunt of its Liability solely

Again, I was never in contention whose job it is to devalue the currency, as the coordinator of the Economy, it wouldn't happen without her knowledge, that i can easily prove.

jpphilips:

The bone of contention is that the coordinating minister of economy (CBN inclusive) devalued the currency

Again, when Soludo co ordinated our Economy, Nigeria imported petroleum products, there was not only a drop in crude prices but also an economic meltdown that forced Soludo to devalue the Naira, why did we not pay exchange rate differentials then?

Finally, You have danced around NECONDE so badly that I have gotten the information I need, NECONDE as a consortium has no track record whatsoever in oil and gas operations, rather your infinite wisdom is suggesting to Nigerians to manage them because individually they have succeeded elsewhere, I said, it is not acceptable; even if I should agree with your abysmal analysis, the highest stake holder in the NECONDE consortium has only operated a "Marginal oil field" transferred in 2013 and he is not operating it alone, there is no proof that the oil field is successful, hence the phase 4 of the plan is still in play.

You also do not have a damn idea why DSO for gas is a bad model, never mind that you could not point to a single country with proven gas reserves as much as Nigeria practicing it.

I careless how you use sermons to bamboozle yourself, when you are tired, you will go back to sequestrate what I said from what you think i said.

Like I said before, I am not looking for a match, I am actually looking for people who have common sense, my postulation is based on simple common sense, If you don't have it, I can't help you.

I will attend to others when I am less busy.

Why I kept on hammering on the subject of Russian Government's interference in the devaluation of the currency was because I thought you were of average inteligence. Alas, you are not. You kept bringing up "govt banks stopped issuing LOC's for importers, but rather the LOCs were routed through private banks" as indicated up there shows how shallow you are.

For the record, the Russian Government "owned banks" DID NOT issue any LOC in 1998 for any importers except, of course, it was you! Only the government banks you own issue LOC. I hope you even know what an LOC is.

class A comprehension deficiency, it took you 2 weeks to get the point I made on in one paragraph, I wonder how many years it will take you to understand phase 1 to 6

Secondly, the fall of crude oil prices was not the major reason rather it contributed. The spoils of war was the major cost that led to Russian economy crises. Stop deceiving people here.

Another comprehension deficiency, who asked you this? what has it got to do with the discussion? what relevance does it have on this thread? The ones you were asked left you confused and now this? stop overwhelming your brain, or you got confused after typing the first paragraph? you cannot even right to the point when given an opportunity, damn!! you are worse than I thought.

Shssssss!!!! Don't let people hear this from you......
Dam.n!!
You just hate to learn. Why is it so if I may ask? Soludo at no time CO-ORDINATED our economy.

Obasanjo was his own coordinating minister of the economy and chairman of the economic management team— which he chaired for 90 minutes every week. I met with him daily. In other words, he did not outsource economic management.
I supply the ideas, he supplies the political will for implementation...............Prof Chukwuma Soludo.

4b. Chairman/Coordinator, Drafting Committee for Nigeria’s reform programme under President Obasanjo, called “National Economic Empowerment and Development Strategy (NEEDS)”

You don't even know the relationship between a drop in crude prices and an economic meltdown! As per if we paid exchange rate differentials, I told you to go read up your books especially on elementary economics. When you do, consider this hint: consider the length of time the price of crude was down and the landing cost of PMS within that time. Also consider to price sold at the retail stations. When you do, you come over.

Comprehension deficiency, please can someone explain to him what I asked him
Imagine someone I asked this question"

Mr confusion, no vex, how much means say a figure in monetary terms.
How can I ask someone how much was paid, instead of mentioning a figure or at the very least admit he doesn't know, he rants a full useless paragraph for nothing.

I laugh at you. Why because you reasoning is shallow. Not deep and may never be deep! It is a fact.
A Special Purpose Vehicle (Neconde) was set up to acquire a stake in a project. In assessing the capabilities, technicalities and soundness of the SPV, do you dwell on the SPV as an entity, as you are currently doing with Neconde? Or the parties that formed the SPV?

As an analogy, what is the pedigree of Ikeja Electricity Distribution Company? or Transmission Company of Nigeria, of Seplat Energy (as at 2011)?

Again, you are not anywere close to average intelligence.

Brother, I wish you could tell us how bad the DSO model is for gas in Nigeria.

Hint: For the fact other countries practice a particular policy doesn't mean it can work in ours!

netotse:
@jpphilips
I'm still waiting for your comments on gas

jpphilips:

Another comprehension deficiency, who asked you this? what has it got to do with the discussion? what relevance does it have on this thread? The ones you were asked left you confused and now this? stop overwhelming your brain, or you got confused after typing the first paragraph? you cannot even right to the point when given an opportunity, damn!! you are worse than I thought.

Obasanjo was his own coordinating minister of the economy and chairman of the economic management team— which he chaired for 90 minutes every week. I met with him daily. In other words, he did not outsource economic management.

I supply the ideas, he supplies the political will for implementation...............Prof Chukwuma Soludo. 4b. Chairman/Coordinator, Drafting Committee for Nigeria’s reform programme under President Obasanjo, called “National Economic Empowerment and Development Strategy (NEEDS)”

Again, when Soludo co ordinated our Economy,

Mr confusion, no vex, how much means say a figure in monetary terms. How can I ask someone how much was paid, instead of mentioning a figure or at the very least admit he doesn't know, he rants a full useless paragraph for nothing.

Finally, someone has admitted that NECONDE as a consortium has no pedigree, based on this unanimous admittance, phase four is proposed to return all those assets back to NPDC, you see how easy it is, once you answer a question directly without sermon, a solution is never far fetched!!

Did you notice that it took you almost 2 weeks to come up to speed with some elements in my subsidy proposal? imagine what will happen if I add DSO to your imbroglio, I fear you may end up with stroke!!
For safety reasons, the subsidy removal plan has already overwhelmed your brain, you need six months to practise comprehension, as soon as I am satisfied you have the mental capacity to handle DSO, then I will open a thread specially for that.
The way you are going, you may end up in a mental shock!! I cant be held responsible for that, I am glad that phase 1 to 4 is within your grasp, when someone who understands 5&6 joins the conversation, you may learn a thing or two. TGIF *cobana*

jpphilips:



Point of correction, the cabals want subsidy removed more than Nigerians want it, the Jonathan's administration sold us a dummy during the 2012 crisis!!

The telecom model will not work because Petroleum products are essential commodities, once you remove subsidy, you cannot decide for the cabal what to sell, so you have left yourself vulnerable to price fixing, hoarding and other forms of economic sabotage, that was what we saw in AGO.

with a subsidy regimen, the government can easily intervene, it got so bad that even the Government's products are stored in the tank farms of the same cabal, so once they down tools, the government is trapped.
just one example of such inefficiencies that phase 1 will address.

kaboninc:


Stop being ignorant here. There was nothing like 'who's co-ordinating' the economy during Obasajo's administration. The title 'Co-ordinating Minister of the Economy was coined in Jonathan's administration.

Learn!

jpphilips:
[/quote][quote author=kaboninc post=34674456]

Stop being ignorant here. There was nothing like 'who's co-ordinating' the economy during Obasajo's administration. The title 'Co-ordinating Minister of the Economy was coined in Jonathan's administration.

Learn!

kaboninc:


Sharrap there!!!!

What was the dummy sold during Jonathan's administration?



Hmmmm. Someone tell this lazy student to go read his books. Are we not witnessing price-fixing, hoardings and other forms of economic sabotage even when there's subsidy in place?



With a subsidy regime (not regimen), the government is expected to easily intervene when you're strongly canvassing for the removal of subsidy? Are these two statements not contradictory? Do you just write without knowing what you've written?

Who ever listens to you or take you seriously is on a roller coaster ride to El-Dorado.

Aura2:




Are you saying Nigeria had no one who was co ordinating the Economy under Obasanjo?
I can deduce you even said it started with Jonathan, please clear this area!!

Aura2:



Regimen is correct, you may look it up in the dictionary, I can see you are forcing yourself to appear smart.
no offence! !

reg·i·men - /ˈrejəmən/
noun
1. a prescribed course of medical treatment, way of
life, or diet for the promotion or restoration of
health.
2. a system of government.

re·gime - /rəˈZHēm,rāˈZHēm/
noun
1. a government, especially an authoritarian one.
2. a system or planned way of doing things, especially
one imposed from above.

Aura2:

.

kaboninc:







So Aura, use you brain effectively and if you don't have something meaningful to contribute, get the last seat!

kaboninc:


Don't you think you should prove me wrong by providing the name of who co-ordinated the economy during Obasanjo's regime?

Rad1cal:
Jpphilips totally damaged beyond repair. Bwahahahahahahahahahahahahah

jpphilips:

How old are you? ?

jpphilips:


How old are you? ?